Food Facts

FARE14 Conference Spotlights Consumer Revolution

Just returning from an interesting conference in Dallas, the FARE foodservice expo, where experts examined everything from changing consumer trends to the astounding growth of the Hispanic population in the U.S. and how that influences restaurants, convenience stores, supermarkets – whoever sells prepared foods.

Here are some interesting takeaways, in no particular order:

•         50% of all eating occasions are considered snacks. That’s because we’re being told that consuming small meals throughout the day is healthier than eating the traditional three squares every day.
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•         Consumers snack healthier in the morning and more indulgently in the afternoon. Come 2 or 3 p.m., they just say, “What the hell…” and grab a candy bar or a bag of chips.
•         Smaller portions are being advertised as snacks and everybody is getting in the game, from quick-serve places like McDonald’s to fast casual outlets like Chile’s.
•         Smaller portions are growing in popularity because people are grazing throughout the day and they don’t want to get too filled up. You need to leave room for that afternoon candy bar, you know.
•         47% of all foodservice occasions involve people eating alone. They’re eating in their cars, grazing at their desks, or they are in families who just eat individually when they feel like it. The family sit down dinner is a thing of the past for many of us these days.
•          Health concerns influenced 64% of consumer eating decisions last year. At least that’s what consumers told the survey people.
•         75% of households purchase organic food, a market that has reached $35 billion annually. It’s helped that the big supermarkets and even Wal-Marthave brought the price down so organics can compete with “regular” food products.
•          Despite the healthy food focus claimed by many, consumers also want immediate consumption and affordable luxury, i.e., everyday indulgences. That’s why snack sales stay strong throughout the industry, and why high-end ice cream and other indulgences do well.
•         51% of consumers say it’s important for a restaurant to integrate technology in their meal ordering capabilities. They like those tabletop devices at Chile’s where you can pay your bill without handing your credit card to a server.
•          Big, bold and authentic flavors are on the rise, with an 11% increase in the term “hot sauce” used on all foodservice menus in last 12 months.
•         Consumers like the idea of a company being socially responsible, and 63% say they are likely to frequent such a company if given a chance. Starbucks should be well positioned,announcing recently that it will help cover college education costs for its employees.
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•          There are 55.8 million Hispanics living in the U.S. today, a 58% increase since 2000 and 17.5% of the total population. By 2060, the Hispanic population will reach 130 million, or 1/3 of the total U.S. population.
•        During that period, the Caucasian population will drop from 63.7% today to 46.6%.
•        The Hispanic population is younger – age 30 is the median, compared to 42 for non-Hispanics. Households average 3.4 persons, compared to 2.4 for non-Hispanic households.
•         All of this is affecting product offerings in foodservice facilities, as well as hiring practices, advertising – virtually all aspects of their operations – as they seek to satisfy this growing customer base.
•         When picking a place to eat, whether it’s a fast food joint, convenience store or restaurant, 87% of consumers say quality of food is most important. Other key attributes are freshness 86%, price/value 81%, cleanliness 79%, menu choices 79% and their previous experience at the location 74%.
•         And guess what, shoppers who frequent foodservice locations less than once a week are pickier than those who go there every week. Go figure.

•         Look for a lot more fresh foods, including salads and such, in convenience stores and even refrigerated vending machines. Consumers say they want that and c-stores are working hard to comply. 
• Watch for fancy vending machines with snack items out by the gas pumps as some convenience store operators give up trying to get you to come inside to buy stuff, so they’re taking it out to you.