Latino Foodservice Trends in the U.S.

Table of Contents

• Executive Summary
  • Scope and Methodology
    • Scope of coverage
  • Methodology
    • Consumer survey methodology
    • Menu item analysis
    • Market size and forecast
    • Hispanic restaurant spend trending
    • Definitions
  • Share of Stomach: Latino Foodservice Market Size and Forecast
    • Insight capsule
  • Latino Foodservice: Macrotrends and Drivers
    • Insight capsule
    • Fast Facts
  • Latinos in Context: Cuisine and Menu Trends
    • Insight Capsule
    • Fast Facts
  • Restaurants, Hispanics & Health
    • Insight Capsule
    • Fast Facts
  • Latinos in Context: Food & Restaurant Spending Trends
    • Insight Capsule
    • Fast Facts
  • Latinos in Context: Restaurant Industry Guest Traffic Trends
    • Insight Capsule
  • Latinos in Context: Casual Restaurant Guest Traffic Trends
    • Insight Capsule
  • Latinos in Context: Family Restaurant Guest Traffic Trends
    • Insight Capsule
  • Latinos in Context: Quick Service Restaurant Guest Traffic Trends
    • Insight Capsule
  • Latinos in Context: Snack & Beverage Concept Guest Traffic Trends
    • Insight Capsule
  • Latinos in Context: Restaurant Brand Analysis
    • Insight Capsule
• Share of Stomach: Latino Foodservice Market Size and Forecast
  • INTRODUCTION
  • Restaurant sales to consumers
    • Limited service restaurant sales to consumers fare better than full service sales
    • Hispanic share of restaurant sales ticks upward
    • Balancing population growth, unemployment trends and HH income
    • Hispanic momentum in full service restaurants' favor
    • Limited service Hispanic restaurant share plateaus
• Latino Foodservice: Macrotrends and Drivers
  • Overview
  • Hispanic importance to market will only grow over time
    • Table Hispanic Population, Share of Total Population, by Age, 2005 2025
    • Hispanic HH income and household wealth lags
      • Table Income Analysis, by Race/Gender
    • But share of consumer spending and buying power on the upswing
      • Table Average Annual Expenditures by Hispanic and Non Hispanic Consumer Units, 2005 09
      • Table Aggregate Spending by Hispanic and Non Hispanic Consumer Units, 2005 09
    • And significant gains in buying power projected
      • Table Projected Growth in Hispanic Buying Power, 2010 15
  • Key restaurant demographic drivers: youth and males
    • Youthful Hispanic population important to all restaurant segments
      • Table Population by Selected Age Group, Hispanics vs. Other Population Groups, 2009
    • Population share + restaurant use and usage frequency
      • Table Restaurant Segment Use and Usage Frequency Among Hispanics, by Age, 2011
    • Males the majority
      • Table Population by Gender, Hispanics vs. Other Population Groups, 2009
    • But restaurant usage and usage frequency tilts to Hispanic females
      • Table Restaurant Segment Use and Usage Frequency Among Hispanics, by Gender, 2011
    • Larger, family households with children
    • Latino households much larger than average
      • Table Population by Gender, Hispanics vs. Other Population Groups, 2009
    • Regional variations
    • Language and acculturation
      • Table Percent of Hispanic Population Foreign Born, 2009
      • Table Percent of Hispanic Population Foreign Born, by Age Group, 2009
    • Most Latinos Are English-speakers
      • Table English Language Capabilities of Hispanics 5 Years Old and Over, 2009
    • Influence of English language grows
      • Table English Language Capabilities of Hispanics 5 Years Old and Over, 2000 09
    • Marketing correctly to multicultural consumers
    • Taco Bell's talking Chihuahua
    • The Spanish media angle
    • Olive Garden: Spanish media; mainstream restaurant chain
  • A question of confidence
    • Opportunity: target Hispanics in view of restaurant usage & degree of confidence
      • Table Degree of Consumer Confidence, Correlation to Restaurant Usage by Segment, Hispanics vs. Non Hispanics
  • Know your geography
    • Highly concentrated Hispanic areas influence leading restaurants' Hispanic share
    • Jack in the Box geographic analysis
      • Table Jack in the Box Location & Hispanic Population Analysis
    • Denny's geographic analysis
      • Table Denny's Location & Hispanic Population Analysis
    • But it's not just about location; it's also about cuisine type
    • Domino's delivers to Hispanics
      • Table Domino's Location & Hispanic Population Analysis
• Latinos in Context: Cuisine and Menu Trends
  • Overview
  • Top ethnic cuisine and flavor trends
    • What's hot?
      • Table Top Ethnic Cuisine and Flavor Trends, 2011
  • Mexican on the menu
    • Top sauces and flavors on Mexican menus
      • Table Top Sauces and Flavors at Mexican Restaurants, Incidence and Penetration, 2011
    • Top Mexican sauces and flavors used across restaurant industry
      • Table Top Mexican Sauces and Flavors, All Restaurant Menus, Incidence and Penetration, 2011
    • Top Mexican entrees vary by segment
      • Table Top Mexican Entrees, Restaurant Penetration, by Segment, 2011
    • Regional variation
      • Table Top Mexican Entrees, Restaurant Penetration, by Region, 2011
    • Top Mexican appetizers
      • Table Top Mexican Appetizers, Restaurant Penetration, by Segment, 2011
    • More than just Mexican
    • Shared in common
    • Mexican menu presence dwarfs those of other Latin American regions
      • Table Latino/Hispanic Cuisine: Restaurant Industry Menu Incidence & Brand Penetration, by Segment, 2011
    • Non Hispanic cuisine chains
    • Pizza chain mixes traditional pizza offerings with Latino-influenced fare
      • Table Domino's Pizza: Latin Influenced Menu Item Introductions, 2010 11
    • Breakfast mainstay spices up menu
      • Table Denny's: Latin Influenced Menu Item Introductions, 2010 11
    • Casual Bar & Grill player innovates with Hispanic-influenced fare
      • Table Chili's: Latin Influenced Menu Item Introductions, 2010 11
    • Burgers with flair
      • Table Sonic: Latin Influenced Menu Item Introductions, 2010 11
    • Studying high concentration areas
    • Diversity on the menu
    • Studying street food
• Restaurants, Hispanics & Health
  • Making health a priority
    • The argument in dollars and cents
    • Obesity rates among Hispanics trending higher
    • Rates among Hispanic children on the rise
    • Lower incomes
    • Rates among men and women by race and ethnicity differ
    • Hispanic culture and practices significantly influence obesity perceptions
    • Burst and bust short-time financial cycle leads to food sharing
    • Feeding children a symbol of nurturing and achievement
    • Obesity not perceived as negative
  • Study ramifications for restaurant industry
    • Hispanic poverty is widespread
    • Hispanic diet, health & food attitudes: a myth exposed & health contradiction?
    • Healthful eating conundrum
    • Positive breakfast trend; negative ingredient knowledge trend
      • Table Hispanic Diet, Health & Food Attitudes: Percentage Use, Index to Non Hispanics, 2006 11
    • Healthy fast food? Not so fast!
    • Generational differences compounded by usage-frequency differences
      • Table Healthy Fast Food Endorsement: Percentage Use, Hispanic Generation Index to General Population,2011
    • But HH income tells a different story
      • Table Healthy Fast Food Endorsement: Percentage Use, Hispanic HH Income & Gen Y Gender Index to General Population,2011
    • Nutrition
      • Table Food Nutrition Importance: Percentage Use, Hispanic Generation & Gen Y Gender Index to General Population,2011
    • The importance of the kitchen is relative
    • The kitchen is much more important to some than to others
    • Debunking a myth: importance of kitchen does not deter Hispanic restaurant use?
      • Table Kitchen Importance: Percentage Use, Hispanic Generation & Gen Y Gender Index to General Population,2011
• Latinos in Context: Food & Restaurant Spending Trends
  • Overview
    • Hispanic HH income and household wealth lags
      • Table Income Analysis, by Race/Gender
    • But share of consumer spending and buying power on the upswing
      • Table Average Annual Expenditures by Hispanic and Non Hispanic Consumer Units, 2005 09
      • Table Aggregate Spending by Hispanic and Non Hispanic Consumer Units, 2005 09
      • Table Income Analysis, by Race/Gender
  • Hispanic household spending trends
    • Hispanic food spending trends
    • Gap between narrows between food-away-from-home and food-at-home spending
    • Hispanic restaurant spending trends
    • Full-service restaurant share gains suggest that significant shift is underway
    • Hispanic daypart spending trends
    • Per household versus per person restaurant spending
    • Breakfast spending increases defy recession
    • Lunch
    • Dinner
    • Snack
• Latinos in Context: Restaurant Industry Guest Traffic Trends
  • Overview
    • A growth driver
    • Population growth saves industry
      • Table Restaurant Usage by Segment: All Consumers, 2007 11
    • Hispanic growth is the key
      • Table Restaurant Usage Among Latino/Hispanics, by Segment, 2007 11
    • Hispanic usage share increases in all major restaurant segments
      • Table Latino/Hispanic Restaurant Usage Share, by Segment, 2007 11
    • Standouts: Family breakfast restaurants
    • Standouts: Pizza establishments
      • Table Indexed Restaurant Usage by Segment & Sub Segment: Hispanic/Latinos & NonHispanic/Latinos, 2011
    • Usage, by demographic
    • Gender trends
      • Table Restaurant Usage by Segment, All Consumers vs. Hispanic/Latinos, by Gender, 2011
    • Generation gap
      • Table Restaurant Usage by Segment, All Consumers vs. Hispanic/Latinos, by Generation, 2011
    • Income plays significant role
      • Table Restaurant Usage by Segment, All Consumers vs. Hispanic/Latinos, by HH Income, 2011
    • Full service restaurant usage trends, by segment
      • Table Full Service Restaurant Usage by Segment: All Consumers, 2007 11
    • Hispanic share
      • Table Full Service Restaurant Usage Among Latino/Hispanics, by Segment, 2007 11
      • Table Latino/Hispanic Full Service Restaurant Usage Share, by Segment, 2007 11
    • Full-service usage frequency
      • Table Full Service Restaurant Visit Frequency in Past Month: Hispanic/Latino Consumers vs. Non Hispanic/Latino Consumers
      • Table Full Service Restaurant Usage, by Daypart: Hispanic/Latino Consumers vs. Non Hispanic/Latino Consumers
    • Spanish speaking Hispanics skew to snacking and breakfast dayparts
    • Limited service restaurant usage, by segment
      • Table Limited Service Restaurant Usage by Segment: All Consumers, 2007 11
      • Table Limited Service Restaurant Usage Among Latino/Hispanics, by Segment, 2007 11
      • Table Latino/Hispanic Limited Service Restaurant Usage Share, by Segment, 2007 11
    • Limited service restaurant usage frequency
      • Table Limited Service Restaurant Usage Frequency: Hispanic/Latino Consumers vs. Non Hispanic/Latino Consumers
      • Table Limited Service Restaurant Usage, by Daypart: Hispanic/Latino Consumers vs. Non Hispanic/Latino Consumers
• Latinos in Context: Casual Restaurant Guest Traffic Trends
  • Overview
  • Hispanic share of Casual Bar & Grill and Italian higher than Casual Steak
    • Table Casual Restaurant Usage Metrics, by Casual Sub Segment: All Consumers vs. Hispanic/Latino Consumers
  • Hispanic usage lags, and demographic trends mirror general population
    • Table Casual Restaurant Usage, All Consumers vs. Hispanic/Latinos, by Gender, Generation & HH Income, 2011
  • Casual Bar & Grill brand analysis
    • Table Casual Bar & Grill Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
  • Olive Garden advertising paying off?
    • Table Casual Italian Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
  • Steak's on!
    • Table Casual Steak Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
• Latinos in Context: Family Restaurant Guest Traffic Trends
  • Overview: Food health attributes that determine choice of a "quick bite"
    • Family restaurants a Hispanic favorite
      • Table Family Restaurant Usage Metrics, by Segment: All Consumers vs. Hispanic/Latino Consumers
    • Demographic snapshot
      • Table Full Service & Limited Service Family Restaurant Usage, All Consumers vs. Hispanic/Latinos, by Gender, Generation & HH Income, 2011
    • Limited service family restaurant brand analysis
      • Table Limited Service Family Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
    • Family breakfast restaurant brand analysis
      • Table Family Breakfast Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
    • Family all day restaurant brand analysis
      • Table Family All Day Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
• Latinos in Context: Quick Service Restaurant Guest Traffic Trends
  • Overview
    • Enormous quick service restaurant usage footprint
      • Table Quick Service Restaurant Usage Frequency: All Consumers vs. Hispanic/Latino Consumers
    • Quick service restaurant usage, by segment
      • Table Quick Service Restaurant Usage Metrics, by Segment: All Consumers vs. Hispanic/Latino Consumers
    • Hispanic Burger usage in line with average
    • 170 million users; 13.2% Hispanic share
      • Table QSR Burger Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
    • Pizza, pizza!
    • A Hispanic draw
      • Table QSR Pizza Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
    • Mexican QSRs outperform
    • Taco Bell the exception
      • Table QSR Mexican Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
• Latinos in Context: Snack & Beverage Concept Guest Traffic Trends
  • Overview
    • Snack and beverage: a demographic overview
      • Table Snack & Beverage Restaurant Usage, All Consumers vs. Hispanic/Latinos, by Gender, Generation & HH Income, 2011
    • Hispanic share lags that of QSR
    • Jamba Juice: usage leader
      • Table Snack and Beverage Restaurant Usage Metrics, by Restaurant Brand: All Consumers vs. Hispanic/Latino Consumers
• Latinos in Context: Restaurant Brand Analysis
  • Top 25 restaurant brands: tale of the tape
    • Five-year Hispanic growth triple that of population as a whole
    • Hispanic share gains
    • Thanks to largest overall usage footprint, McDonald's draws most Hispanics
    • But eight other brands register explosive usage growth
    • McDonald's versus burger rivals
    • Burger saturation-or are burgers just not hitting the mark?
    • High Hispanic share
    • Low Hispanic share
    • Share gainers
      • Table Top 25 Restaurant Brands: System wide Sales & Hispanic Share of Guest Traffic, 2007 11
    • Top 25 quick take: Hispanic vs. all consumers restaurant brand usage
    • Top 25 quick take: Hispanic vs. all consumers restaurant brand usage likelihood
    • Throwing a wider net: large and mid size chains
      • Table Restaurant Brands with High Hispanic Usage Share: Indexed Use, Revenue and Units, 2011

Abstract