Restaurant Beverage Orders Decline as Consumers’ Tastes Shift

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Although consumers order a beverage 70 percent of the time when visiting restaurants and other foodservice outlets, beverage orders have declined 4 percent or 2 billion servings over a five year period, finds The NPD Group, a leading global information company. Consumers changing tastes and cost consciousness are behind declines, finds a new NPD foodservice market research report.

There are more growing beverages at restaurants in the last five years than declining, but the declining beverages, like carbonated soft drinks, are larger in servings volume, according to NPD’s Beverages at Foodservice: Satisfying our Thirst for Beverages report which examines consumers’ beverage choices, what and where they order, and the importance of variety in driving their decisions. Iced/frozen coffee, specialty coffee, tap water, and bottled water top the list of growing beverages. Diet and regular carbonated soft drinks, milk, and brewed coffee have lost the most servings of the declining beverages.

The growing beverages, like iced and specialty coffee, get a boost from the fact that consumers “love” these beverages and will make a special visit to get them. These beverages are also more likely to be ordered for a snack. Also behind growing beverages, like tap water, is cost consciousness, consumers will forego a purchased beverage and opt for tap water instead, or visit another location in order to get a lower-priced beverage, finds the NPD report.

Declining beverages, like carbonated soft drinks and milk, which account for nearly 50 percent of all beverages ordered at foodservice, have lost 4 billion servings since 2010. Though declining beverages are down overall, they are purchased with the most frequency of all beverage categories – about two-thirds purchase them during most or every foodservice visit. These beverages are typically ordered at dinner or lunch.

“Despite recent declines in beverage servings, the fact is that beverages are still an important part of foodservice visits – whether by themselves or as part of a meal,” says Warren Solochek, president of NPD’s Foodservice Practice. “In order to drive beverage orders, foodservice operators will need to understand consumers’ changing tastes and offer an array of quality beverage choices, including healthy options.”

About The NPD Group, Inc.

The NPD Group provides market information and analytic solutions that drive better decision-making and better results. The world’s leading brands rely on us to help them get the right products in the right places for the right people. Practice areas include apparel, appliances, automotive, beauty, consumer electronics, diamonds, e-commerce, entertainment, fashion accessories, food consumption, foodservice, footwear, home, mobile, office supplies, retail, sports, technology, toys, video games, and watches / jewelry. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter: @npdgroup.

(via PRWeb)

Restaurant Consumers' Multidimensional Definition of Value Emphasizes the Overall Dining Experience

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  As consumer attitudes shift, Technomic Inc.'s study explores current foodservice value proposition.

CHICAGO, Sept. 22, 2015 – PRNewswire

Nearly 80 percent of consumers say that "value" is very important in their decision of where to dine—but their definition of foodservice value depends on many factors, including service and, increasingly, overall ambiance and the quality of menu offerings. While price will always play a major role, delivering on these multidimensional elements of value is crucial as consumer attitudes toward dining out shift and operational costs rise. To combat this, operators must increase emphasis on the overall dining experience, finds Technomic's Value & Pricing Consumer Trend Report.

"While food quality remains essential, the overall experience is becoming more important to today's diners who are looking for fun, social and unique dining occasions," suggests Kelly Weikel, director of consumer insights. "Service and atmosphere make up about 40 percent of Gen Zers' and Millennials' value equations at all types of limited- and full-service restaurants. They are looking for experiences they can share—both by connecting with others in the dining party and through social media."

Compiling findings from more than 1,500 U.S. consumers, as well as Technomic's MenuMonitor, Consumer Brand Metrics and Top 500 Restaurant Chain Report, the Value & Pricing Consumer Trend Report also reveals:

  • 47 percent of Millennials indicate they are seeking higher-quality fare more now than in 2013;
  • 53 percent of  loyalty card holders are very likely to base their restaurant decision on a loyalty membership;
  • The most influential deals are "Buy One Get One Free" and "Half-Off Specials."

The Value & Pricing Consumer Trend Report is one of many topics in Technomic's Consumer Trend Report series offering the most current analysis, insight and opportunities to help grow your business. Our best-in-class intelligence combines 50 years of foodservice expertise with critical findings from over 7,000 menus per year and nearly 30,000 annual consumer interviews.

About Technomic: Only Technomic, A Winsight Company, delivers a 360-degree view of the food industry. We impact growth and profitability for our clients by providing consumer-grounded vision and channel-relevant strategic insights. Our services range from major research studies and management consulting solutions to online databases and simple fact-finding assignments. Our clients include food manufacturers and distributors, restaurants and retailers, or other foodservice organizations, and various institutions aligned with the food industry. Visit us at www.technomic.com.

(via PR Newswire)