Saturday, January 28, 2012

Consumer Demands for Family Midscale Restaurants: Health and Convenience, Reports Mintel

According to a recent Mintel foodservice report, 80% of family restaurant-goers who are eating out less in general are doing so because of budgetary reasons. Due to this and other challenges, family restaurant sales are expected to decline by 7% over the next four years.

“Playing the pricing game has not proved successful for family restaurants,” notes Eric Giandelone, foodservice director at Mintel. “Mintel believes that the greatest opportunity for the market to return to a path of growth is to employ a sustainable approach to value by promoting reasonable prices with value-added benefits like health and convenience.”

The report goes on to say the challenge for restaurant operators is that historically, “healthy” menu items don’t sell well because a healthy item often communicates “no taste.” However, a change may be imminent. In fact, 34% of restaurant-goers say healthy food is an important factor in selecting a family restaurant.

It's suggested that adding value through convenience is another approach that can benefit family restaurants. While the majority (75%) of consumers enjoy the sit-down, full-service experience, families are more likely to say that service at these restaurants is typically too slow. As a result, families are more likely to save family restaurants for weekend dining, when they have more time.

The consumer demand for healthier food and convenience are a great reason for restaurants to have an "online cafe". It attracts more business crowds and catering during business hours and families who don't have time for the sit-down experience during their busy week night schedules.

I am not surprised that when asked what family restaurant goers want to see more of on the menu, 44% said fruit as a side option, while 41% want different preparation methods, like grilling. These numbers correspond with the importance of healthy "whole food" menu items being available to order online for  pick-up, delivery, curbside, and even faster dine in service.

Too many businesses today wait for the customer to figure out how best to use their products and services. I believe that our number one responsibility as business people, is to understand the needs of our customers consistently and offer effective solutions. Those of us who do a better job at serving the changing needs of our customers become admired industry leaders with resilience to competition and sluggish economies.

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