QSR Magazine: What Happened to Table Service?

What Happened to Table Service?

The recession served casual-dining chains some serious blows. But quick serves and fast casuals shouldn’t get too confident. 

In many cases, it’s a different consumer out there today deciding where to dine when the urge hits. Throughout the recession, full-service restaurants offered so many fire-sale bargains that those little affected by the economy could almost feel guilty for practically stealing meals when they would have just as willingly paid regular price.

The meal deals that spelled survival for sit-down restaurants were like Black Friday to consumers, says David Morris, author of the report Dinner Trends in the U.S. Foodservice Market for Packaged Facts. The upshot was giddy guests (higher guest traffic) with lower guest checks. Great for the consumer, but depressing for operators who are now trying to unwind themselves from the spiral.
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LA Times: Small pet stores see healthy growth of organic food sales

Sales of premium-priced organic and natural pet food are expected to grow three times as fast as pet food sales overall through 2015.

Lance Castro, left, and Guy Miracle, owners of the Modern Dog in Venice, sell several brands of freeze-dried raw food and premium kibble. “It’s done wonders for our business,” Castro says. (Ricardo DeAratanha, Los Angeles Times)

By Cyndia Zwahlen

February 7, 2011

Organic, raw and even gluten-free food choices aren't just for people anymore.

These options are showing up at local pet shops that are looking to distinguish themselves from big-box competitors. After a slowdown in sales of premium-priced food during the recession, independent pet shops said the sector was recovering.

At the Modern Dog, a boutique in a Venice bungalow, co-owner Lance Castro was looking to add two new brands of freeze-dried raw food and premium kibble to the seven he already sells.
"It's done wonders for our business," said Castro, who opened the Abbot Kinney Boulevard store with Guy Miracle five years ago.

The store's popular Sojos dehydrated dog food mix of sweet potatoes, turkey, apples and flax meal, among other ingredients, costs $21.99 for a 2-pound bag, to which water is added to make 10 pounds of food.

Castro said he was looking at sites for a second location where he plans to have a refrigeration unit for fresh and frozen raw-food brands.

Nationwide, annual retail sales of organic and natural pet food are expected to grow three times as fast as pet food sales overall through 2015, according to an industry report to be released this week by the Packaged Facts market research company.

Industry analyst David Lummis, who wrote the report, estimated that natural and organics would grow 12% a year on average, hitting $2.8 billion in 2015. By comparison, he expects an average 4% annual growth rate for the entire pet food market over the same period. Overall pet food sales will reach $22.1 billion in 2015, Lummis said.

"People are treating their dog food like some people are treating their baby food," said Todd Martin, vice president of marketing for Castor & Pollux Pet Works, a Clackamas, Ore., company that makes organic pet food and treats. "They want to know it's safe, and they want to know it's quality."

Still, organic pet food — which costs as much as 30% more than non-organic — remains a tiny part of the overall market.

Many independent shops, which are in the vanguard of the organic food sector, got a boost in business in 2007 when pets died from eating food that contained imported wheat gluten and rice protein contaminated with melamine. The poisonous contaminant even showed up in some brands sold as being natural.

As with food for people, there are no regulations governing the word "natural" on pet food labels. But pet foods marketed as organic must meet the same U.S. Department of Agriculture standards as human food in the category, according to USDA spokesperson Soo Kim.

Annual sales of organic pet food increased tenfold from 2002 to 2009, when sales hit $84 million, according to the Organic Trade Assn.

Now that organics are becoming more popular, some large pet store chains are also carrying them, said Joan Storms, an analyst at Wedbush Securities in Los Angeles.

But the more exotic raw and organic pet food is still mostly the province of independent shops.

Neal Massa is co-owner of My Pet Naturally in West Los Angeles, where customers can find raw elk meat for $7.49 a pound and raw chicken and lamb for Fido for about $4 a pound.

"My clientele are probably mostly single, more single women than not, and what I am finding is that these are their kids," Massa said, referring to his customers' pets. "So you are going to spend a little bit more money for pet food."

Full Article: Pet food: Independent pet stores see growing sales of organic and natural pet food - latimes.com

Sales of Pet Supplements for Dogs and Cats Not Recession Resistant, but Nevertheless Resilient

Sales of Pet Supplements for Dogs and Cats Not "Recession Resistant," but Nevertheless Resilient

New York, January 11, 2011 — Making good on its famed "recession resistance," the overall U.S. pet industry has fared well during the recession relative to many other consumer packaged goods industries, but pet owners have not been immune to the economic downturn. As a result, certain industry segments saw growth stall in 2009, including the pet supplements industry. However, Pet Supplements and Nutraceutical Treats in the U.S., 3rd Edition by market research publisher Packaged Facts forecasts a return to strength for supplement sales as the optimism of pet owners gradually recovers in harmony with the general economy.

"As the economy improves, so should all things pet, but that recovery continues to appear modest," says David Lummis, senior pet market analyst for Packaged Facts. "Spending on supplements will increase but ‘restraint’ will likely continue to characterize how pet owners shop and what they buy during 2011 and even 2012, making value appeals based on pet health, safety, professionalism, practicality, and yes, pricing, more important than ever."

Packaged Facts estimates total U.S. retail sales of pet supplements and nutraceutical treats at more than $1 billion in 2010, reflecting a compound annual growth rate (CAGR) of 4% during the five–year period beginning in 2006. Sales growth stalled in 2009 and 2010 as the recession took hold and held on, a slow–down attributable almost entirely to a downturn on the equine side. As a result, the small animal category–including products for dogs and cats–gained ground between 2006 and 2010, increasing from 45% to 52% of the market and surpassing equine as the larger category last year.

U.S. retail sales of pet supplements and nutraceutical treats are expected to begin to pick back up in 2011, with the annual sales growth regaining steam through 2015. By this account, the annual percentage increases will rise from more than 2% in 2011 to almost 7% in 2015, lifting sales to an estimated $2 billion. Growth will be considerably faster on the small animal side than on the equine side. For both animal classifications, the pace will be faster in nutraceutical treats, which will continue to gain ground because of their indulgence advantage and a steady influx of more heavily marketed products. Ultimately, small animals will account for 58% of the market by 2015.

Pet Supplements and Nutraceutical Treats in the U.S., 3rd Edition segments the market into two categories–supplements and nutraceutical treats (i.e., those containing supplements or novel botanical ingredients addressing specific health conditions, such as glucosamine for joint health)–with a primary focus on products for dogs and cats, but also extending to horses and other types of companion animals including birds, small mammals, and reptiles. The report provides a forward–looking examination of the market from every angle, including breakouts by supplement type and retail channel, analysis of the complex and evolving regulatory situation, competitive structure and marketing trends, new product tracking, and consumer profiling. For further information, please visit: http://www.packagedfacts.com/Pet-Supplements-Nutraceutical-2588715/.


About Packaged Facts —Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services. To learn more, visit: www.packagedfacts.com. Follow us on Facebook, LinkedIn and Twitter.

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For Immediate Release
Contact:
Jenn Tekin
Packagedfacts.com
(240) 747-3015
jtekin@packagedfacts.com

Frozen food trend on the up, says Packaged Facts

www.foodnavigator-usa.com
By Caroline Scott-Thomas, 23-Dec-2010
 
"The frozen foods industry in the United States has boomed over the past few years – and growth in the sector looks set to continue in 2011, according to a new report from Packaged Facts."

The market research organization said that the frozen food sector has enjoyed a period of unprecedented growth, as consumers are eating at home more often and manufacturers have innovated with healthier options that also tap into demand for convenience. Packaged Facts’ “Frozen Foods in the U.S., 3rd Edition” report found that from 2006-2010 sales of frozen foods rose 22 percent, or about $10bn, to reach a total value of $56bn in 2010.

Publisher of Packaged Facts Don Montuori said: "A lingering effect of the recession is that consumers are eating at home more. This trend has had a positive impact on the frozen foods market, as consumers turn to the freezer aisles to supplement more expensive fresh produce and meats. Additionally, microwaveable frozen products provide a quick and easy lunch-at-work for those looking to avoid pricey lunches out."

In addition, the report says that the economy is no longer holding back frozen food innovation. After two years of declines, the number of new frozen food and beverage product introductions reached a new high in 2010, increasing 21 percent on the previous year, to 728, more than in pre-recession 2007. The market researcher said this is “a sign that economic conditions are no longer discouraging frozen food marketers from bringing new products to the market.”

While frozen dinners and entrees continued to sell well in 2010, sales of frozen appetizers and snacks are flat, and the frozen juice category is in free-fall, the report said.

“Canned, bottled and frozen juices have all experienced losses in the millions as consumers turn to beverage options with less sugar, or to functional beverages such as energy drinks and enhanced waters,” according to the market researcher.

Packaged Facts predicts that the frozen food and beverage sector will reach $70bn in retail sales by 2015, up 25 percent on 2010.

For further information, please visit: http://www.packagedfacts.com/Frozen-Foods-Edition-2511637/.

Millenials in the U.S.: Trends and Opportunities Surrounding Gen-Y Adults

The 51 million adult members of the Millennial Generation (also known as Gen-Y) have been hit harder than any other age group by the recession. Millennials have the highest unemployment rate of all age groups, while those with jobs are most likely to have been asked at some point during the recession to work fewer hours, switch to part-time employment or agree to have their pay cut.

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Yet, paradoxically, survey data show that Millennials are less likely than any other age segment to have cut spending during the recession, and they are more optimistic than other American consumers about the future of the American economy.

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U.S. Pet Market Outlook 2010-2011: Tapping into Post-Recession Pet Parent Spending

As the U.S. economy moves out of recession and into recovery, the purse strings of many pet parents will loosen, but shoppers will continue to demand greater value in the pet products and services they purchase as well as from the channels they shop. U.S. Pet Market Outlook 2010-2011: Tapping into Post-Recession Pet Parent Spending provides essential insights into the U.S. pet market overall as well as each of its four core categories: veterinary services, pet food, non-food pet supplies, and non-medical pet services (grooming, boarding, training, etc.).

Benefiting from many current trends and “future factors,” the market will rise from $53 billion in 2009 to over $70 billion in 2014, the report forecasts, with strong demand for products and services that both enhance pet health and pamper lifting many boats as pent-up pet parent demand begins to kick in during 2010.

Continuing the market tracking and forecasting of the previous edition of Packaged Facts’ annual report (see U.S. Pet Market Outlook 2009-2010: Surviving and Thriving in Challenging Economic Times— http://www.packagedfacts.com/prod-toc/Pet-Outlook-Surviving-2154192/), the 2010-2011 edition projects sales, market growth drivers, and competitive and marketing opportunities. In a new focus discussion, it details...

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Rewards Cards in the U.S., 3rd Edition

2010 brings a perfect storm to the credit card industry, driven by recession-induced changes that are reshaping its core. At the same time, card rewards have become ubiquitous. In the face of some of the most significant changes the credit card industry has ever faced, some argue that rewards programs are simply no longer feasible in an era of constrained revenue and profits. However, as detailed in Packaged Facts’ Rewards Cards in the U.S., it is not a matter of eliminating reward programs, but rather about adapting them to some of the most significant changes the credit card industry has ever faced.
In its most consultative report in the series, this 3rd edition of Rewards Cards in the U.S. helps position industry participants to navigate this reengineering in card rewards by assessing the following industry trends and challenges:

• How does continued migration to electronic payments shape the future of rewards?
• Which regulatory changes are most relevant to rewards?
• Understanding the macroeconomic and credit factors that shape the pool of current and future credit card customers.
• How large is this pool of customers? 
• Does the current credit environment effect migration from credit to debit? Why? How?
• Which fee structures are being implemented—or could be implemented—to counteract regulatory change?
• How are card issuers’ credit card portfolios adapting to change? How can they share in tapping a smaller pool of cardholders while growing profits?
• What will happen to affluent, credit worthy cardholders? Less credit worthy cardholders? How do rewards play a role?
• Can rewards help grow transactions and help extend card reach beyond a shrinking consumer base?
• How does closed-loop versus open-loop competition and significant industry consolidation affect competition?
• What is the fate of co-brand rewards?
• Which reward types best fit the needs of specific consumers?
• Over the course of the recession, which consumers are active card users? Multiple card users? Transactors? Revolvers? How has this changed over time?

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Gay money talks - PrideSource.com

New study highlights LGBT buying power, attitudes toward economyby Lucy Hough - Originally printed 9/16/2010 (Issue 1837 - Between The Lines News)

A recent report states that LGBT people are typically more optimistic about the general direction of the country, specifically in terms of economic growth, the job market and personal finances. And, as a result, LGBT buying power is high.

"The Gay and Lesbian Market in the U.S.: Trends and Opportunities in the LGBT Community, 6th Edition" was released by Packaged Facts, a division of MarketResearch.com, in early August and relies on various data including that collected by Witeck and Combs Communications, which released a report in March 2010 about LGBT households' opinion of the economy.

"What we found out in March was that they were clearly more confident," Bob Witeck said.
Witeck and Combs work with Harris Interactive to do various research initiatives, typically dealing with LGBT people throughout the United States. Their sample includes individuals who are 18 years and older and self-identify as lesbian, gay, bisexual or transgender.

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Shifts in Consumer Demographics during the Great Recession

Attitudes and habits among American consumers are undergoing a change in the aftermath of the recession. Recent survey data from Nielsen group reveals that while the intensity of the economic panic had subsided since 2008, concerns persist and new habits in spending and saving are solidifying.

Consumer Confidence a Dynamic Phenomenon

One of the most striking findings of this Packaged Facts analysis is that “consumer confidence” is a highly fluid concept. From 2005 through 2009 there were tens millions of Americans who migrated in and out of the ranks of Confident and Anxious Consumers. At the end of this period, the demographic profile of Confident and Anxious Consumers had been dramatically transformed.

Multicultural Consumers More Confident

As noted in the February 2010 edition of Packaged Facts The African-American Market in the

U.S., African Americans were especially hard hit by the Great Recession. Yet, in the face of declining incomes and daunting unemployment rates, survey research from a variety of sources suggests that the sense of empowerment created by the election of Barack Obama has led blacks to adopt a more optimistic vision of the future than that held by other Americans. For example, data released in January 2010 by Washington, D.C.-based Pew Research Center survey found that the number of blacks who rate their personal finances as excellent or good was up from 2007 (32% vs. 27%). In sharp contrast, the ratings among whites dropped substantially, from 52% to 35%.

While non-Hispanic whites account for 69% of the population, they represent 80% of Anxious Consumers. In sharp contrast, 29% of blacks are counted as Confident Consumers, compared to only 19% of non-Hispanic whites. Non-Hispanic whites are three times as likely as blacks to be categorized as Anxious Consumers (23% vs. 8%). Latinos and Asians also are more likely than non-Hispanic whites to be Confident Consumers and are less likely to be Anxious Consumers.

The Confident Consumer represents the most attractive target for marketers eager to participate in a post-recession rebound. The average household income of Confident Consumers is significantly higher than that of Anxious Consumers ($82,928 vs. $64,279). The aggregate income of Confident Consumers totals $1.9 trillion, 27% higher than that of Anxious Consumers.

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