Your guests by Kseniya Vershinina

your

GUESTS

Trend Watch

Welcome to Trend Watch In every moment of every working day in over sixty countries there is a member of the Unilever Food Solutions team working in partnership with a catering operator to make their business more successful. This unrivalled reach brings real benefits. It creates a unique depth of understanding of the challenges faced by operators large and small across both well-established and fast developing markets. We want to share the knowledge gathered on our journey through this wonderfully diverse market to help make your business even more successful now and in the future.

Trend Watch holds up a mirror to the eating out market. The trends and insights it reflects can help you understand more about your guests and how they make decisions and choices when eating out. Our aim is to inspire and show how a deep understanding of your guests can keep your business evolving and successful. This first issue examines three of the top eating out trends relevant across the world. The importance that guests attach to quality, value and healthier choices.

Quality Guests views and opinions on ‘quality’ can really vary depending on where they are, the occasion and who they are eating with. It can be a difficult concept to pin down. Yet, research shows that ‘overall experience’ is the most important factor when it comes to choosing to eat in one restaurant over another.* This supports the idea the successful operators should really be looking to boost quality in every aspect of their business. From ingredients to menus, front of house service to facilities, making real quality improvements impresses guests and contributes to the fantastic experience they are looking for. Guests’ quality expectations are rising, even among the less adventurous groups. They are asking more about the food they are eating and making more considered choices. It’s time to think about quality in all aspects of your business. *Peach Factory Food Trends 2010

What is driving the trend?

How this is emerging in the market?

Fresh and Natural

Brands that are ‘passionate about quality’

Consumers associate natural ingredients with quality. 47% of consumers agreed with the statement ‘my impression of a restaurant will improve if I know they buy fresh ingredients’. Economic American Express Market Brief

Great Expectations

Despite the global recession consumers cited quality as the most important factor when choosing to eat out Peach Factory 2010

From fashion to food, consumers are looking for an ‘experience’. This is as much about the quality of the food, as it is about the location, ambiance and service. The Media The huge popularity of cooking programmes, celebrity chefs, cook books and high profile destination restaurants, have put culinary expertise into the mainstream. Consumers have a heightened awareness of global cuisines, ingredients, cooking methods and quality.

The increasing success of restaurants that pride themselves on fresh, natural ingredients. Fresh, natural and pure on menus Fresh labelling has increased, and we expect menus in the future to feature heavily with fresh foods, locally named producers and artisan ingredients. The ‘Experience’ of eating out The consumer desire for a dining experience can be seen at the top end of the market, right through to successful commercial operations in staff feeding where the consumer watches their meal cooked fresh in front of them. Mintel Menu Insights.

Communicate quality in your business Here are some ideas to help you demonstrate your commitment to quality. Feature fresh ingredients – state if your salad is served with a citrus dressing or a vinaigrette made with Modena balsamic vinegar. It will let your customers know you are concerned with every little detail as well as the overall quality of your menu. Local produce – if you are using a local ingredient state where it is from or even the farm who supplied the produce. This demonstrates your restaurants commitment to quality and sustainability. 6

Free range – if you are using free range chicken or mayonnaise, tell people about it. You will be able to charge a premium and will communicate your values. Be proud of ingredients – if your tomato sauce is made using sustainably grown tomatoes, or you serve Rainforest Alliance tea and coffee have a section on your menu about your commitment to using sustainable products.

Introduce some theatre – for example serve sauce in a separate jug then pour onto the meal once you have served to the customer. Serve signature dishes on a sizzler or steak on a hot stone. Empower knowledgeable staff – make sure your FOH staff are well briefed on all the dishes and can talk about them confidently, helping them feel empowered to sell them up.

Case Study

A passion for quality: Emiliano Restaurant, Brazil For José Barattino and the team at Emiliano in São Paulo the quality of the restaurant is intrinsically linked to their commitment to fresh sustainable ingredients. The restaurant has built up numerous partnerships with small, local, food producers who directly supply fresh seasonal ingredients, including vegetables, dairy products, sugar, rum and organic wines. Importantly, Emiliano has taken the leap to communicate these local suppliers and ingredients directly to guests on the menus. www.emiliano.com.br

Consumers are purchasing less expensive items rather than eating out less frequently. To maximise guests’ spend make sure your menu has enough up-selling opportunities.

Value What is driving the trend?

Technomic Research 2009

The Global downturn With countries emerging from the global downturn at different speeds, it’s important to note that the majority of consumers do plan to spend less on eating out for the foreseeable future.* They really are going to be very careful with their discretionary spending. Some countries experienced a phenomenon called ‘The Lipstick Effect’. This occurs when consumers make smaller indulgent purchases but forego more extravagant expenditure on larger items or bigger occasions. Undoubtedly, consumers have been trading down but there is also a renewed desire to invest more energy into getting better value wherever they are and whatever they are spending their hard-earned money on.** *Mintel Global Research 2009 **Euromonitor 2009

How this is emerging in the market More Deals The figure does fluctuate across the world, but as many as a quarter of consumers are coping with the downturn by only visiting restaurants that offering discounts on their menus. Vouchers for money off being the most popular incentive. Greater Competition The scramble to attract guests and capture their eating out spend has led to a much more competitive market. Certainly chain operators that benefit from having a bigger marketing resource have been winning in markets across the world. Clever pricing strategies are being used to attract guests and many of them are aware of the really great eating out deals available and, if they are not, they are certainly ready to hunt them out. 8

Communicate value in your business Only one in four of guests place blame on operators and the food industry for the rising cost of eating out, but rather than introducing a sudden price increase or just taking the hit so you don’t lose customers, introduce some pricing strategies that will benefit your bottom line without stretching your guests’ budgets.

Upselling Upselling aims to convince guests to buy extra menu items or upgrade their current purchase. ‘Would you like fries with that?’ is the classic example. Sometimes, upselling is also known as suggestive selling. If your front of house team is not practicing upselling, it could be time to introduce it. Upselling is one of the quickest ways to improve profits without spending any extra money. Good upselling has the following results… Increased average spend per guest By selling more items and upgrades, you will increase the size of the average spend in your restaurant. Better guest satisfaction

Set price menus • A menu of set price entrees at lunchtimes • Two courses for a single set price • A few ‘economy’ set price desserts Whichever example is right for your business set price menus have proven appeal with guests. Varying the set prices across different courses and day parts will boost business in different ways according to your needs.

Basic dishes The time could be right to experiment with some lower priced dishes that use cheaper cuts of meat and plentiful, seasonal vegetables. These often need expert preparation which a guest would not prepare at home so using traditional cooking methods such as slow roasting or braising which take time and care gives an appealing nostalgic angle to the dish as well as delivering the value and margin you need.

A focus on starters Innovate your salads and soups with dressings, toppings and dips, different ingredients, and cooking techniques. Promote the generous size of your starters for either sharing or making a main course. Four out of five US consumers felt that appetisers should be shared and three quarters would consider ordering a combination platter.*

Reward customers Reward those customers who keep coming back, they will be touched by your offer and could become your biggest advocates. Offer them a free dessert at the end of their meal or a liquor with their coffee.

When your servers practice good suggestive selling, it results in better service, since guests are made aware of the best options that are available to them. More profitable sales In addition to selling more items or selling more expensive items, upselling can increase sales for menu items with the highest profit margins, as servers learn to recommend the most profitable items. Better tips and job satisfaction for waiters and servers Higher spend averages means higher tip rates, which will make your waiters and servers happy.

Where upselling can work best Drinks

Appropriate side dishes

‘Would you like bottled or carbonated water?’ Although the customer can still request tap water, this suggestion increases the chances that they will purchase water instead. The opportunity to upsell wine and/or beer is also best at the beginning of service. Often, wine sales can be the main factor that increases profit margins.

Any time a customer orders anything that would go well with something else, waiters and servers should suggest the side dishes.

Appetisers Appetisers usually have good profit margins. They are also one of the easiest menu items to upsell. There is a good chance that guests are already hungry when they arrive so the front of house team should not miss the opportunity. Servers should be trained to offer enticing descriptions of appetisers to encourage the customers.

Desserts All waiters and servers should offer guests dessert, describing them in mouthwatering detail. If a table seems hesitant to indulge, recommend that the guests consider sharing a dessert, just to get a little taste. Most profitable items Every member of the front of house team should be aware of which items on the menu are most profitable, so that they can try to suggestively sell them. For example, if servers know which main course is most profitable for the restaurant, when a customer asks for a recommendation, they can mention that item. If servers know which dessert is most profitable, they can make sure to have a delicious description of it ready for when the customers finish their main course.

45% of women and 28% of men said they were looking for more healthy food and drink options when eating out Harris 2009

Health & Wellness What is driving the trend? Obesity has become a global issue. 14% of the total global population are obese.

How this is emerging in the market? It is clear that the demand for healthy food (or what is perceived as such) will be an important issue for operators like you over the next 5 years. The industry is warned by the disastrous consequences of fast food on every street corner in the USA. Together with the lack of physical activity it has led to an obesity epidemic with all social and financial followings. The food industry is starting to respond based on the fundamental conviction to make ‘the healthy choice the easy choice’. This can be seen through initiatives across the globe:- In the USA the Food and Drug Administration (FDA) released information on the new Affordable Care Act, federal requirements for nutrition labelling on menus. The EU Proposal for Food Information Regulation is still in discussion in the European council and will be implemented across all European countries.

Consumers are more aware of the correlation between health issues and an unhealthy diet. Huge media coverage of the obesity crisis as well as coverage of size zero models. The media has also been responsible for the hype surrounding apparent ‘danger’ foods that can be linked to cancer and so called miracle foods that can help you live longer. The global desire for youthfulness and physical perfection drives health and wellness up the social agenda. More and more consumers have special dietary needs and avoid certain food groups which have lead to health and wellness being a very personal choice.

This means operators have to react. Not only to be sure not to be blamed for health issues, but also because this consumer trend offers a lot of profitable business opportunities.

Case Study

Healthy and fast: Leon, UK

Leon is a growing chain of restaurants in the UK which is changing the perception of fast food. Offering healthy, delicious fast food at reasonable prices, Leon’s vision is that food should taste good, do you good and be enjoyable for everyone. Seasonal produce, super foods, wheat free, gluten free and meat free dishes are all on the menu. www.leonrestaurants.co.uk

Communicate health & wellness in your business A surge in the availability of healthier, natural and sustainable foods in retail shows no signs of slowing and will continue to increase both awareness and consumption. Is your menu fit for the future? Upsell – respond to the needs of the 20–30% of consumers who are willing to pay more at either breakfast, lunch or dinner if the establishment offers healthier options. Create a ‘halo’ effect – even a small quantity of natural, organic and sustainable items on a menu will create a ‘halo effect’. It affects guests’ overall perception of the menu and the experience in a really positive way. Make it premium – although consumers may not consciously seek natural, organic and sustainable menu items, they do perceive menus that include them to be better quality all round. Menu essentials – always offering a few healthier and sustainable choices will ensure that you attract guests who do seek them out.

Nutritionally calculated and calorie counted meals – make it easier for consumers to choose healthy options by showing a GDA breakdown or a calorie count for dishes on your menu. For advice visit www.xxxxxxxxx.xxx.

Promoting 5-a-day – always include fresh fruit and vegetables in your dishes. This will not only convey health and wellness but will also communicate quality and taste.

Market to the 40-70% of consumers with whom the positioning statements ‘premium’, ‘portion’ and ‘fresh’ resonate strongly

Reduce bad fats – commit to reducing bad fats (hydrogenated) across your menu. You can do this simply by using lean cooking methods, steam, poach, microwave, grill or bake. You can also switch from butter to healthy spreads such as FLORA or BECEL, using lean cuts of meat and ensure you are using products that do not contain transfats.

Technomic

Make salads and vegetables attractive – customers need to be tempted to get healthy and are often wary of taste when choosing a perceived healthy dish. Make salads and vegetable dishes sound and taste amazing by adding herbs, spices and dressings. 14

For more information, recipe ideas and marketing support visit Your Guest on www.unileverfoodsolutions.xx address to go in here