Changing consumer eating habits in the fast casual industry

Changing the way consumers eat

Tuesday, March 3, 2009

PANELIST

Paul Barron
Publisher Fast Casual magazine

Chairman Fast Casual Alliance & Fast Casual Executive Summit

Fort Lauderdale, FL

Copyright 2009 Fast Casual Alliance

PANELIST
Louis Basile

CEO/President

Wildflower Bread Company

Scottsdale, AZ


PANELIST
Ed Frechette

Senior Vice President Marketing

Au Bon Pain

Boston, MA


PANELIST
Jamie Strobino

Senior Vice President of New Concepts

Uno Restaurant Holdings

Boston, MA


FAST CASUAL FACTS


FAST CASUAL FACTS
• Fast casual restaurants will generate roughly $12 billion in sales in
2009
• The fast casual segment grew 12% in 2008
• 2009 is estimated to grow 10% in 2009
• The top three chains ranked by sales are Panera Bread, Panda
Express and Chipotle
• Fast Casual is the fastest-growing segment in the restaurant
industry


Number of Fast Casual Brands

Source - Fast Casual magazine


0 175 350 525 700
1996 80

2000
245
2004
389
2008
2012 620

700



0 175 350 525 700

60%
1996 80

2000
245
Growth like this
2004 can result in a
389 slowing segment
2008
2012 620

700


Fast Casual Universe


Fast Casual Universe

Italian/Pizza Ethnic
2% Coffee
Fresh Mex
Sandwich 7%
19% Asian
Bakery Cafe 3%

Burger/BBQ Steak
Soup Salad Italian/Pizza
Soup Salad
12%
7%
Fresh Mex
Ethnic Burger/BBQ Steak
Coffee 9%

Asian
Sandwich
18%
Bakery Cafe
23%


What consumer’s want in their menu

Food Action Group - Consumer Survey, fast casual - 2008


27%
Quality Taste 33%
Variety Different / Creative
New Flavors

20%
14%
6%



27%
Quality Taste 33%
Variety Different / Creative
New Flavors

20%
Fine Dine 14%
Casual 5% 6%
11%

Quick Consumers’ eating habits
•
32%
Percentage of food expenditures weekly
•
Fast Casual
53%


Age demographics
These people eat at fast casual at
least once per week

Source - Food Action Group 2008

Age demographics
least once per week 62 - up16-24
4% 8%
25-34
16-24 25-34 50-62 12%
31%
35-49 50-62
62 - up

35-49
45%


Age demographics
least once per week 62 - up16-24
4% 8%
25-34
16-24 25-34 50-62 12%
31%
35-49 50-62
62 - up

35-49
45%
7%
12-25K
101-125K
7%
4% 26-50K
11%
Income demographics
•
76-100K
29%
fast casual consumers
12-25K 26-50K
51-75K 76-100K
51-75K
42%
101-125K 126K Up


Most active consumers in Fast Casual

Based on gender & profession - qualifier data: knows
fast casual and visits at least twice per week


Most active consumers in Fast Casual

Based on gender & profession - qualifier data: knows
fast casual and visits at least twice per week
0 7.5 15.0 22.5 30.0
Male Professional
18
Male Non-Professional 5
Female Professional
Female - Homemaker
25
15
College Student
12
High School Student 2
Female Non-Professional
8
Retired Male
7
Retired Female
8


WHAT IS FAST CASUAL

Fast
Casual

Source - Technomic


WHAT IS FAST CASUAL

Fast
Casual

First
Rate
Source - Technomic


WHAT IS FAST CASUAL

Fast
Casual

Fast Service

First
Rate
Source - Technomic


WHAT IS FAST CASUAL

Fast
Casual
Fine
Ingredients

Fast Service

First
Rate
Source - Technomic


WHAT IS FAST CASUAL

Full Grown
Appeal
Fast
Casual
Fine
Ingredients

Fast Service

First
Rate
Source - Technomic


WHAT IS FAST CASUAL

Pay First

Full Grown
Appeal
Fast
Casual
Fine
Ingredients

Fast Service

First
Rate
Source - Technomic


WHAT IS FAST CASUAL
Fresh

Pay First

Full Grown
Appeal
Fast
Casual
Fine
Ingredients

Fast Service

First
Rate
Source - Technomic


WHAT IS FAST CASUAL
Fresh

Pay First
Fair Price

Full Grown
Appeal
Fast
Casual
Fine
Ingredients

Fast Service

First
Rate
Source - Technomic


WHAT IS FAST CASUAL
Fresh

Pay First
Fair Price

Full Grown
Full View
Preparation Appeal
Fast
Casual
Fine
Ingredients

Fast Service

First
Rate
Source - Technomic


WHAT IS FAST CASUAL
Fresh

Pay First
Fair Price

Full Grown
Full View
Preparation Appeal
Fast
Casual
Fine
Flexible
Ingredients
Offerings

Fast Service

First
Rate
Source - Technomic


WHAT IS FAST CASUAL
Fresh

Pay First
Fair Price

Full Grown
Full View
Preparation Appeal
Fast
Casual
Fine
Flexible
Ingredients
Offerings

Friendly
Fast Service
Employees

First
Rate
Source - Technomic


The “WOWquot; of a Fast Casual
Branded Experience!


The “WOWquot; of a Fast Casual
Branded Experience!

What you stand for

Differentiation

Innovation

Brand promise

Quality drives financial performance


Five Star Value Proposition
A Competitive Advantage


A Competitive Advantage The Five Star
Value Proposition
executed daily
becomes your
competitive
advantage


Value Proposition
executed daily
becomes your
competitive
advantage
P+F+S+A+E=V


Value Proposition
executed daily
becomes your
competitive
advantage
P+F+S+A+E=V

Passion: Brand spirit, values and leadership resides here
Food: Fresh, quality food that’s creative
Service: Attentive to all customer needs
Ambiance: Immaculately clean, décor, restaurant vibe
Execution: Leadership drives all four elements

Value: Brand experience


Passion - Spirit, Values and
Leadership Resides Here



TEAM



TEAM
• Vision
• Values - They should answer the question;
What to do?
• Team needs to believe they are part of something
bigger than themselves
• Charged Up and Ready Everyday


Food - Great Tasting Fresh Food with
Creativity


Food - Great Tasting Fresh Food with
Creativity

• Fresh
• Creativity
• Limited Time Offers
• Executable
• Enhances Brand Promise


Service - Memorable From Beginning to End


Service - Memorable From Beginning to End

• Make a connection
• Every guest is different
• Sense of urgency
• Resolve any issues…quickly


Ambiance - The Visual Elements


Ambiance - The Visual Elements

• What is the story?
• Does the vibe match your vision for your brand?
• Brand image reinforced


Execution - Leadership


Execution - Leadership

• Set the direction
• The guide rails
• Bottom up
• Empowerment


Value - The End Result


Value - The End Result

• Customer driven
• Memorable
• Tells a friend
• High frequency
• Advocate for the brand


The Operator’s Challenge


The Operator’s Challenge

The operator’s challenge is to lead your entire
organization to engage at the following levels:

• Body - Every detail matters, standardize all
business practices and measure results
• Mind - Engaged, attentive, present
• Spirit - Choose your attitude and guiding
values


Body - It’s in the Details


Body - It’s in the Details

• Sweat the small stuff (you are building the brand)
• What to measure must align with Brand Promise
• Systematize to replicate success
• Systems that can be executed
• Keep it simple


Mind - Present & Engaged


Mind - Present & Engaged

• Show up
• Look ‘em in the eyes
• Not just a hat rack
• Complete the play


Spirit - Intentions Matter


Spirit - Intentions Matter

• Brand first
• Team driven
• Intentions aligned with values
• Want to serve
• Fun


Fast Casual In Review


Fast Casual In Review
• Fast Casual is fastest-growing segment in our
industry

• Branded experiences are memorable

• Five Star Value Proposition is a sustainable road
map for success

• All levels of the organization must be fully engaged


Q&A for the Panelists

Thank you

Q&A for the Panelists

• Our panelists are available for questions from the
audience

• For more information about joining the Fast
Casual Alliance go to www.fastcasualalliance.com

Thank you

Changing consumer eating habits in the fast casual industry

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Changing consumer eating habits in the fast casual industry

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