digital dining: chain restaurants add social media, mobile to the...

Digital Intelligence Copyright ©2011 eMarketer, Inc. All rights reserved.

March2011

Executive Summary:Therestaurantindustryispoisedtomakeacomeback,butnotwithoutnew

challenges.Asthenationslowlyrecoversfromtherecession,consumersareeagertodineoutmore—yet

atthesametimetheirneedsarechanging.123991

Notonlyaredinersvalue-driven,theirattentionisdividedastheylookforinformationonthegoandfromtheirsocialnetworks.AdailyspecialmentionedonTwitterorthediscoveryofanewneighborhoodcafeviaamobileappcanbeasinfluentialinthedecision-makingprocessasatelevisioncommercialornewspaperadusedtobe.

Asaresult,restaurantoperatorsknowtheymusthaveapresenceonmultiplesocialmediasitesandreachpeoplethroughtheirphones.Allrestaurants—fromquick-servicetofinedining—sharethesamegoal:toincreasesales.ButsomearehesitanttodiveintostrategieswithunprovenROI.

TheNationalRestaurantAssociationprojects$604billioninsalesforthenation’s960,000restaurantsin2011,thefirsttimeinthreeyearsthatoperatorswillexperiencegrowth.And55%ofrestaurantoperatorsanticipatehighersalesoverthefirsthalfof2011comparedwiththefirstsixmonthsof2010,thehighestfigureinoverfouryears.AccordingtoNation’sRestaurantNews,2011willalsobetheyearwhensocialmediacampaignsmakeupamajorityofmarketingplans.

Businessesthatengage,providevalueandreachpotentialdinerswheretheyspendtheirtime—whetherinacarorconnectingwithfriendsonline—willbeatadistinctadvantage.

Key Questions

■■ Howaredinersusingmobileandsocialmedia?

■■ Whatdorestaurantoperatorsneedtoknow?

■■ Whatisthefutureofmobileandsocialmediaforrestaurants?

% of respondents

Most Important Aspect of Marketing Plan in 2011According to US Restaurant Operators

Source: Nation's Restaurant News, "2011 Restaurant Operator Survey," Jan 6, 2011123991 www.eMarketer.com

Radio advertising3.9%

Nationalcable TV

9.3%

Local market TV12.4%

In-store promotions31.0%

Social media campaigns43.4%

Krista Garcia [email protected]

Report Contributors Jeffrey Grau

Digital Dining: Chain Restaurants Add Social Media, Mobile to the Menu

The eMarketer View 2

The Shifting Dining Landscape 3

How Consumers Look for Dining Information 4

Priorities for Restaurants 7

How Restaurants Use Mobile and Social Media 8

Conclusions 13

Endnotes 14

Related Information and Links 15

Digital Dining Copyright ©2011 eMarketer, Inc. All rights reserved. 2

The eMarketer View

12

Restaurant Segment SnapshotDefinition Examples Quick stats

Quick serviceAlso known as fast food or QSR, items are inexpensive, servedefficiently and purchased at a counter or a drive-thru, frequently to-go.

McDonald's, Taco Bell,SUBWAY

$167.7 billion in salesforecast for 2011, up 3.3% over 2010

42% of consumers visit a QSR at least once per month

Generate 78% of industry traffic

Fast casual

Limited service, but withmore emphasis on styleand quality than a QSR, generally with higherprices as well.

Chipotle Mexican Grill, Panera Bread, Pei Wei Asian Diner

70% of consumers think fast casual is healthier than quick service

$28.4 billion sales projected for 2014, a 24% increase from $23 billion in 2010

Sales expected to grow5.8% in 2011

Casual dining

Table service, moderatelypriced and family-friendly,often with a separate barand full menus includingappetizers, entrees anddesserts.

Olive Garden, Applebee's,The Cheesecake Factory

85% experienced highergrowth in 2010 than 2009

Accounts for more than 1/3 of industry sales

31% of men ages 18–34increased visits in 2010 vs. 2009

Fine diningMore formal and expensive than casual dining with a focus on atmosphere, service and quality.

Morton's The Steakhouse,McCormick & Schmick'sSeafood Restaurants, Roy's

Experienced the strongestturnaround in 2010, mostly due to increasedbusiness/travel spending

81% of fine diners prefer a local, unique restaurantover an upscale national chain

86% of restaurant operators expect sales trends to improve

Source: compiled by eMarketer, 2011125313 www.eMarketer.com

5313

For additional information on this chart, see the Endnotes section.

Social media has leveled the playing field for restaurants.Asmallindependentrestaurantwithatinymarketingbudgethasthesametoolsatitsdisposalasachain.Whatisimportantishowitemploysthosetoolsanddevotesresources.Themostsuccessfulbusinessesknowthatamassingfansisn’ttheendgame,butratherjustthestartofhowtheyengagewiththeiraudience.Amom-and-popsandwichshopwithapassionatelocalfollowingcanuseFacebookinthesamewaysasSUBWAY.Thefoodtrucktrend,startedbysmallmobilevendors,isnowbeingadoptedbynationalchainslikeSizzler.ThistrendwouldnothavebeenpossiblewithoutserviceslikeTwittertobroadcasthourlylocationsandstayintouchwithdiners,despitethelackofabrick-and-mortarrestaurant.

Use of social and mobile is steadily increasing, so restaurants that do not engage in these channels might miss out.eMarketerforecaststhatby2013,51.4%oftheUSpopulationand67%ofinternetuserswillbesocialnetworkusers.USsmartphoneusersgrewnearly49%in2010,to60.2million,andby2015,43%ofallUSmobileuserswillhaveasmartphone.Havingapresenceinthesechannelswillbeasexpectedasawebpageisnow.

Location-based marketing is well-suited for the restaurant industry.Whilethenumberoflocation-sharingserviceusersisstillsmall—4%ofonlineadults,accordingtoaNovember2010studybythePewInternet&AmericanLifeProject—thisfigureisdoubleforthoseages18to29.UsageisexpectedtogrowalongwithsmartphoneadoptionandasserviceslikefoursquareandFacebookPlacesmoveintothemainstream.Comparedtoothercategories,diningisaparticularlysocialactivity.Auser’sonlinenetworkmaynotcareaboutcheck-instothedentistoradrugstore,butmentionsofarestaurantorbarcanbeasolidword-of-mouthendorsement—andcanenticeotherstojoininonthespot.InFebruary2010,MilwaukeeburgerjointAJBombersfamouslyattracted161foursquareusersatonceaftertheownerpromotedtheSwarmbadge,awardedwhen50ormorefoursquareuserscheckedintothesamevenue.

Different segments have unique needs, but can rely on similar marketing tactics.Thefastertheinteraction,themoreutilitarianthediner’sneedsgenerallyare.Acustomerataquick-servicerestaurantlikeMcDonald’smayonlybeinterestedingettingadealwhileafast-casualrestaurantlikeChipotleMexicanGrillhasbrandevangelistswhovieweatingthereasalifestyle.Casualdinersvisitingrestaurantsthatrequiremoreofatimeandmoneyinvestment,suchasOliveGarden,lookforvalueandneedoccasionstovisit.Finediningismoreabouttheexperience,engagementandreachinginfluencers.Butwhetheradinerordersfromacounteroralinen-coveredtable,thegoalisthesame:toincreasesales.Alllevelsofdiningcanbenefitfromsocialmediaandmobilemarketing.

Conveying value will continue to be important.Dinersmaybeopeninguptheirwalletsmorethanintherecentpast,butnoteveryoneisreadytosplurge.ConsumershavegrownaccustomedtoGroupon-likediscountsinallaspectsoftheirlives,fromhomefurnishingtovacationpackages.OneoftheleadingreasonspeoplefollowabrandonTwitter,“like”oneonFacebookordownloadabrandedappistoreceivedeals.Pricestillmatters,thoughprovidingvaluedoesnothavetomeanprofit-erodingpromotions.A2010NPDGroupsurveyfoundthatconsumersdescribedvalueinmanyways,includingservice,quality,convenienceandatmosphere.


The Shifting Dining Landscape

Therestaurantindustryisstartingtoreboundfromtherecession.AccordingtoaNationalRestaurantAssociationforecast,thiswillbethefirstyearwithpositiverealsalesgrowthinthreeyears,witha1.1%gainprojectedforatotalof$604billioninsalesin2011.Restaurantoperatorsarecautiouslyoptimistic.InDecember2010,55%ofthosepolledanticipatedhighersalesoverthefirstsixmonthsof2011,up13percentagepointsfromtheprevious

monthandthehighestfigureinoverfouryears.

Dinersarenotascarefreewiththeirmoneyastheywerewhentheeconomywasstronger—only10%ofrespondentsinanOctober2010Mintelsurveyplannedtospendmoreonrestaurantsthisyear.However,theNationalRestaurantAssociationforecastfoundthatover40%ofconsumerswantedtodineoutmorethantheycurrentlyare.

InJune2010,thePrivateLabelManufacturersAssociationdiscoveredthatcuttingbackondiningexpenseswastheNo.1waythatconsumershadchangedtheirfood-buyinghabitsbecauseoftherecession.Anoverwhelming91%hadgonethatrouteand76%saidtheywillcontinuecuttingbackonrestaurantsevenaftertheeconomyimproves.

1

% of US consumers

Change in Food-Buying Habits due to the Recession,June 2010

Cut back on money spent on restaurants, fast food and take out91%

Keep a shopping list and avoid buying on impulse88%

Cut back on purchasing more expensive items such as fish, meat,prepared meals and convenience products

81%

Buy store brands more often than before73%

Shop at a variety of stores to find the best price67%

Buy more canned, bottled or packaged foods and ingredients asopposed to buying convenience or ready-to-eat products

66%

Buy the store brand in product categories where you used to buyonly the national brand

66%

Clip and use coupons for items63%

Delay buying regularly purchased groceries until you can buythem on sale

58%

Note: among 63% of respondents who have changed habitsSource: Private Label Manufacturers Association, "Store Brands & TheEconomy: Are Shoppers Ready to Start Spending Again?" conducted by GfKRoper, Aug 3, 2010119674 www.eMarketer.com19674

Sixmonthscanmakeadifference,though.InDecember2010,STORESMagazineandBIGresearchpolledconsumersaboutthingstheywouldbeunwillingtogiveupdespitetheeconomy.Threeofthetop15responsescenteredondining:fastfood,casualsit-downandfastcasual.Thefastfoodsegmenthadthestrongestholdonconsumers;peoplewouldrathergiveuppremiumcabletelevisionoranewpairofshoesthanaburgerandfries.Notsurprisingly,finediningwastheonlysegmentthatwasn’tspared;90%didnotconsideritanecessity.

12

% of respondents

Products/Services that US Consumers Can't LiveWithout, Dec 2010

Internet service82%

Mobile phone service (basic)64%

Cable/satellite TV (basic)61%

Discount shopping for apparel52%

Hair cut/color42%

Fast food dining39%

Charitable contribution38%

Casual sit-down dining (Applebee's, Olive Garden, etc.)32%

Mobile phone service (text, video and internet)31%

New pair of shoes30%

Vacation29%

Cable/satellite TV (premium)27%

Fast casual dining (Panera Bread, etc.)26%

Department store shopping for apparel25%

New pair of jeans24%

Source: STORES Magazine, "American Pulse Survey" conducted byBIGresearch, Feb 1, 2011124945 www.eMarketer.com

4945

Consumersmaybemorefrugal,buttheyarenotabouttogiveupeatingoutaltogether.Emphasizingvalueisstillcriticalforrestaurantoperatorslookingtotapintothispent-updemand.


How Consumers Look for Dining Information

Eatingoutusedtobeasimpleproposition.

Dinershadasetnumberoffavoriterestaurants;

maybetheywouldreadareviewinthepaper,

pickupacopyofZagat,orsolicitideasfrom

friendsandfamily.

Theinternetopenedupnewchannelsfordisseminatinginformation—whethertheonlineopinionsfromaNewYorkTimescriticorafoodbloggerinNewOrleans—andnowconsumersareincreasinglyreliantonsocialmediaandsmartphonestosiftthroughit.Thedynamicischangingandrestaurateursneedtoreachpotentialdinerswheretheyspendtimeonlineandwhentheyareonthemove.

Using Social Media

InNovember2009,30%ofinternetuserswereusingsocialmediatoresearchrestaurants,accordingtoTechnomic,afoodindustryconsultingfirm.Thatfiguregrew7percentagepointsyear-over-yearandnowrepresentsasubstantialaudiencethatwillonlycontinuetogrow.

1

% of respondents

US Internet Users Who Use Social Media to LearnAbout Restaurants, Nov 2009 & Nov 2010

Nov 2009

30%

Nov 2010

37%

Note: ages 18+Source: Technomic and American Express, "Market Briefing: Tracking andInterpreting Restaurant Trends," provided to eMarketer, Dec 1, 2010125071 www.eMarketer.com25071

Consumersinteractwithrestaurantsonsocialsitestoreceivediscountsanddealsaswellastolearnaboutnewitems,accordingtoTechnomic.Dinersmaywantabargain,buttheyarealsocuriousaboutmenuadditionsandspecials.Operatorshaveopportunitiestoengageusersandpromoteproductsbeyondsimplyresortingtocoupons.

12

% of respondents

Reasons that US Internet Users Follow Restaurantson Social Media Sites, Nov 2010

Get promotional deals67%

Learn about new items66%

Find out where free food is being offered37%

Learn about new locations29%

Check out new ads25%

Note: n=154 ages 18+Source: Technomic and American Express, "Market Briefing: Tracking andInterpreting Restaurant Trends," provided to eMarketer, Dec 1, 2010125072 www.eMarketer.com

5072

Consumerswhoidentifydiningas“partoftheirlifestyle”areparticularlyconnected.AnOctober2010PackagedFactssurveyrevealedthatamongthisgroup,31%placedrestaurantordersthroughtheircomputersand21%haddonesothroughamobiledevice.

Additionally,adultswhoareactivesocialmediausersdineoutmorefrequently.TheNationalRestaurantAssociation’s2011forecastfoundthat92%ofconsumerswhofrequentlyuseatleastoneservicesuchasFacebook,foursquareorYelpateatafull-servicerestaurantatleastonceamonth,comparedto84%ofthegeneralpopulation.And87%ofthesocialmediausersconsumedfastfoodortakeoutinthesametimeframecomparedwith83%ofalladults.Justoverhalf(51%)ofthemoresocialnetworkedgroupsaid“restaurantsareanessentialpartoftheirlifestyle”comparedwith43%ofregularconsumers.


The Value of a Fan

Much has been written about calculating social media users’ value to a brand, particularly for Facebook fans. Numbers have varied wildly from a few dollars to over $100, depending on methodology. A more tangible metric could be what fans actually spend.

A June 2010 survey by Syncapse and Hotspex showed that Facebook fans spent more on products than nonfans. For example, of the 20 consumer brands studied, McDonald’s had the widest gap between fans ($310.18 per year) and nonfans ($150.39). Of course, the conundrum is whether Facebook fans spent more or if larger spenders tended to be Facebook fans. As tempting as it is to assign hard numbers to social media users, it is advisable to not become overly caught up in value calculations. What a restaurant does with its fans is more important than merely acquiring them.

Using Mobile

Basedonmediacoverage,onecouldeasilygettheimpressionthatallUScitizensarearmedwithsmartphones,waving-and-payingastheygo.Inreality,bytheendof2011,therewillbe73.3millionsmartphoneusersintheUS,representing31%ofallmobilephoneusersand23.4%ofthepopulation,accordingtoeMarketerprojections.

Butsmartphoneuserstendtobeyounger,maleandwithmoreexpendableincomethantheaverageconsumer,whichmesheswithmanyfastfoodmarketers’usualcustomerbase.Itisnotsurprisingthatquick-servicerestaurantshavecateredtomobileusers,butashandhelddevicesbecomemorewidelyadopted,theaudiencewillexpandbeyondyoungmen.

AccordingtoaJune2010surveyfromYahoo!andTheNielsenCompany,21%ofmobileinternetuserswhoresearcheddininginformationturnedtotheirphones.Another60%usedonlytheirPCs.Ofallrespondents,regardlessofwhethertheychosemobileorPCaccess,73%expressedinterestinusingamobiledeviceinthenext12months.

USinternetusers’interestinaccessingrestaurant/dininginformationviamobiledeviceisnearlythesameamonggenders,with67%ofmalesand66%offemalesexpressinginterest.Thoseages25to34madeupthelargestgroupcurrentlyusingmobile(29%ofmobileinternetusers)and72%ofallmobileandPCinternetusershadfutureinterest,themostofallageranges.Theoldestdemographicgrouphasgrowthpotentialaswell:Mobileinternetusersages55to64comprisedonly9%ofallwhousedmobiletoaccessdininginformation,butmorethanhalf(58%)ofmobileandPCinternetusersthatagewereinterestedindoingsoduringthenextyear.

12

% of respondents in each group

Interest of US Internet Users* in AccessingRestaurant/Dining Content via Mobile Device, by Age and Gender, June 2010

MaleGender

67%

Female 66%

13-24Age

65%

25-34 72%

35-44 70%

45-54 63%

55-64 58%

Note: in the next 12 months; respondents who chose "extremely," "very,"or "somewhat" interested; *who access information related to therestaurant/dining categorySource: Yahoo! and The Nielsen Company, "Mobile Shopping FrameworkStudy: Restaurants/Dining Category Analysis," provided to eMarketer, Aug 1, 2010124990 www.eMarketer.com

4990

Itiseasytoseehowavalue-orientedmomorempty-nesterswithrobustsavingshavediningneedsthatcanbemetthroughmobilemeans.Aquick-servicerestaurantcouldofferamobilecouponforasaladwiththepurchaseofachild’smeal,whileamoreupscalerestaurantcouldprovideafreeglassofwinetoaccompanyselectentrées.


Location, Location, Location

Everydaydiningcanbesubjecttowhimsandmattersofconvenience,suchas“What’snearmyhomeortheoffice?”Whetheritisthesuburbaniteinhiscar,acity-dwelleronfootoratravelerinanunfamiliartown,locationistopofmindformobilediningusers.

Usingarestaurantlocatorwasthetopmobileactivityfor75%ofUSmobileinternetusers.

12

% of respondents

Dining-Related Mobile Activities of US MobileInternet Users, June 2010

Used restaurant locator 75%

Used search 73%

Decided where to eat 56%

Looked up a menu 56%

Clicked to call 39%

Note: among respondents who accessed category-specific informationSource: Yahoo! and The Nielsen Company, "The Mobile ShoppingFramework Study: The Role of Mobile Devices in the Shopping Process,"Jan 15, 2011124299 www.eMarketer.com

4299

Mobileinternetusersarenotperformingheavyresearchdutiesontheirphones—theysimplywanttoknowwheretoeat.Allthebellsandwhistlesonarestaurant’smobilesiteorappcouldbefornaughtifit‘slackinganeasy-to-userestaurantlocator.

AccordingtoaDecember2010Microsoftsurvey,41%ofUSlocation-basedserviceuserssearchedforrestaurantinfoandreviews,followingmoreutilitarianactivitieslikeGPSnavigationandweatheralerts.

12

% of respondents

Activities for Which Location-Based Service Users inSelect Countries Have Used Location-Based Services,Dec 2010

GPS navigation

Weather alerts

Traffic updates

Restaurant info/reviews

Locating the nearestconvenience services (gas, coffee shops, etc.)

Shopping/coupons(special offers)

Find nearest ATM

Get movie showtimes

Local news

Social networking

Gaming

Geo-tagging photos

Enhanced 911

Locating your children

Other

USn=150

71%

50%

34%

41%

37%

33%

30%

32%

25%

25%

13%

7%

4%

5%

9%

UKn=129

81%

40%

45%

41%

30%

32%

22%

18%

27%

23%

9%

6%

2%

3%

5%

Germanyn=142

69%

45%

47%

37%

28%

24%

27%

8%

15%

18%

3%

6%

3%

1%

4%

Canadan=178

62%

25%

22%

15%

43%

19%

17%

20%

11%

11%

6%

6%

2%

1%

9%

Japann=172

67%

69%

45%

57%

39%

58%

34%

32%

21%

15%

17%

2%

11%

5%

1%

Totaln=771

70%

46%

38%

38%

36%

33%

26%

22%

20%

18%

10%

6%

5%

3%

6%

Source: Microsoft, "Location Based Services Usage & Perceptions Survey"conducted by Cross-Tab Marketing Services, Jan 26, 2011124594 www.eMarketer.com

4594

Dininginformationisclearlypopularamongthosealreadyusinglocation-basedservices.Andeventhoughonly4%ofonlineadultsuselocation-sharingservices,accordingtoaNovember2010studybythePewInternet&AmericanLifeProject,awarenessisgrowingalongwiththeprevalenceofsmartphones.RestaurantoperatorsshouldnotwriteoffserviceslikeGowallaandfoursquaresimplybecauseonlyasmallsegmentofthepopulationcurrentlyusesthem.Instead,theyneedtofindnewwaystoengageconsumers.Somemayneverbemotivatedbythegamingaspectofcheckingintorestaurantsandwillneedreal-worldrewardstosparkparticipation.OthersmaytireofwinningvirtualbadgesandcouldbespurredbyaservicelikeSCVNGR,whichencouragescheck-instiedtoscavenger-hunt-typechallengesthatearnpointsredeemablefordiscountsandprizes.

“Check-ins are interesting, but they don’t mean a hell of a lot. It’s up to business and platform providers to think about how they can really add value on both sides of the equation.”—Dave Tryder, director, interactive & relationship marketing at Dunkin’ Donuts, in an interview with eMarketer, February 2011


Priorities for Restaurants

Socialmediahasalsobecomeaninvaluable

marketingtoolforrestaurants.TheNational

RestaurantAssociation’s2011forecastshowsthat

morethan80%ofrestaurantoperatorsthinksocial

mediawillbecomemoreimportantandoverhalf

plantoaddchannelslikeFacebookandTwitterinto

theirmarketingplansoverthenexttwoyears.Itis

likelythatsomeofthosewhodidnotcitefuture

planshavealreadybecomeinvolved.

Morethan28%ofrestaurantoperatorsplantoincreasemarketingspendingoverallin2011,accordingtoaJanuary2011Nation’sRestaurantNewspoll.Andsocialmediaruleswhenitcomestoprioritizingthatmarketingbudget.Over43%considerittobethemostimportantpartoftheirmarketingplanfor2011,dwarfingtraditionalmedia.

12

% of respondents

Most Important Aspect of Marketing Plan in 2011According to US Restaurant Operators

Source: Nation's Restaurant News, "2011 Restaurant Operator Survey," Jan 6, 2011123991 www.eMarketer.com

Radio advertising3.9%

Nationalcable TV

9.3%

Local market TV12.4%

In-store promotions31.0%

Social media campaigns43.4%

3991

Thesefindingsmaynotbeatotalsurprisesincesocialmediaisoftenviewedaslesscostlytoimplement.Manyeateriesarestillhandlingsocialmediain-housewithlittlemoneydevotedtoit,soanincreaseinmarketingbudgetwouldnotnecessarilybeahugeinvestmentcomparedtotraditionaladvertising.

Thiscreatesanissueformanyrestaurantoperatorsthatwanttostaycompetitivebutareheldbackbyavarietyoffactors.AJune2010surveybyMustHaveMenusfoundthat23%ofrestaurateursdonotfeelliketheyhavethetimetodevotetosocialmedia,andanequalnumberdonotthinkthattheyneedsocialmediaasamarketingtactic.Fewerthanhalf(42%)wereparticipatingwithblogsormanagingTwitterandFacebookaccounts.

Somerestaurants,particularlylargeones,havetroublegettingbuy-infromthebusinessside.“Everyone’sdoingit”isnoteffectiveforstartingasocialmediaprogram,andjustifyingaleapcanbedifficultwithoutnumbersforbackup.

CheckersDrive-InRestaurantshadbeenrelyingonfan-runFacebookpagesforitsCheckersandRally’sbrands.Itwasn’tuntilJanuary2011thatCheckerstookthehelmitself,andgained75,000fanswithinthefirstfewweeks.CheckersisnowparticipatinginTwitter,YouTubeandfoursquare,thankstoadigitalmediapushthatonlycameaftertherestaurantconductedanonlinesurveyanddiscoveredhowimportantsocialandmobileweretoitscustomers.Asaresult,theideawaseasiertosellinternallyand,asanaddedbonus,includedconsumers’insightstoaidincampaignplanning.

“We learned that if we didn’t act now, we’d be left behind.”—Terri Snyder, EVP and CMO of Checkers Drive-In Restaurants, quoted in QSRweb.com, January 21, 2011


How Restaurants Use Mobile and Social Media

Restaurantsareatvariousstagesofmobileand

socialadoption.Tweetingfunnyanecdotesand

littleelsemaymakesenseforsomebrands,while

othersmightemploysophisticatedmobileappsto

entice.Operatorsshouldbecomefamiliarwiththeir

customers,thenfocusonwheretheywillmake

themostimpact.Somerestaurantshavebeen

successfulwhileothersarestilltryingtogetitright.

Followingareexamplesofwaysthatrestaurants

havebeenemployingmobileandsocialtacticsto

increaseengagement,loyaltyandsales.

Increasing Foot Traffic

Asso-calledcheck-incultureevolves,itwillnotbeenoughtosimplyofferlocation-basedusersvirtualbadgesandbraggingrights.DoesaretireeinArizonacareaboutbeingthemayorofhisfavoritedeli?Capturingtheattentionofmobileconsumerswillstarttorequiretangiblerewards—evenjustnominalones—togetthemthroughthedoor.

Chili’s Grill & Bar

SinceJuly2010Chili’shasbeenperiodicallyofferingfreechipsandsalsaforeveryfoursquarecheck-in,notjustinthebarorafteraminimumnumberofvisits.Itmaybeasmallthing,butitisguaranteedandnotavailabletootherdiners.

Chipotle, McDonald’s and Starbucks

ThesethreewereamongthefirstrestaurantstojoinFacebookDeals,whichlaunchedinNovember2010.TheserviceallowscompaniestorewardFacebookPlacesusersbyofferingpromotionstothosewhocheckintoparticipatingbusinesses.Thedealscanbestraightforwarddiscounts,loyalty-basedrewardsafterasetnumberofcheck-insorcharitycomponentswithdonationstriggeredafteraminimumnumberoffriendscheckin.Ofcourse,thecheck-inisbroadcasttoauser’sFacebookwallforfriendstosee,avirtualword-of-mouthendorsement.

Whiletheseareallnationalbrands,FacebookDealsismovinghyperlocalandbeingutilizedbysmallerindependentbarsandrestaurantsthatmightnothaverobustmarketingbudgets—withoffersrangingfromafreebeerataBrooklynpoolhalltocomplimentarycannolisataBocaRatonpizzeria.

“We picked as a starting point one of the biggest problems local businesses have had online, which is they’ve been told that they need to spend money on advertising and to create a local presence.… The concept of check-in deals helps them start to connect the dots between what’s happening online and what’s happening in their store.”—Emily White, senior director of local at Facebook, in an interview with eMarketer, November 2010

Rewarding Loyalty on the Go

Repeatbusinesshasalwaysbeenacornerstoneoftherestaurantindustry—forexample,loyalcustomerstendtobeeitherBurgerKingorMcDonald’sfans,notboth.Andnowrestaurateurscanmoreeasilynurturethisloyalty.Mobileisprovingtobeaversatiletoolformanagingloyaltyprograms,offeringrewardsandtrackingresults.Insteadoftotingaroundphysicalcards,customerscanuseloyaltyappsonasinglehandhelddevice.

CKE Restaurants

InDecember2010,CKERestaurants,parentcompanyofCarl’sJr.andHardee’s,launchedaGPS-enabledloyaltyprogramcalledHappyStarRewards.DinerswhousethemobileapptocheckincanspinthevirtualWheelofAwesomenessontheirfirstvisitandeveryfourthvisitthereafter.Facebookuserswho“like”Carl’sJr.orHardee’sarealsoabletospinthewheelonlineandsendgiftsthey’vewontotheirmobilephone.PrizesrangefromcouponstomovieticketstoSonyelectronics.Themoreauserchecksin,thehighertherewardsvaluesbecome.

BradRosenberg,managerofdigitalstrategy&marketingatCKERestaurants,toldeMarketerinaninterviewthattheprimaryadvantageofbuildinganappin-houseratherthanusingapopularservicelikefoursquareisitisensuredtoworkwithallpoint-of-salesystemscompanywide.Itisalsohighlycustomizable.

Tasti D-Lite

FrozendessertchainTastiD-Litehasamultidimensionalapproachtomobileloyalty.UserscanregisterthecardonlinetolinkandupdateFacebookorTwitterstatus,aswellastocheckintofoursquarewhentheyhavemadeapurchase.Loyaltymembersscoreonepointper$1spent,andthoseconnectedtosocialmediasitesreceiveanextrapointpersocialmediasiteusedtobroadcasttheirpurchases.Inmid-2010,sixmonthsintotheinitiative,thecompanyrevealedthat20%ofloyaltymembershadchosentobroadcastpurchasestotheirsocialnetworks.

http://totalaccess.emarketer.com/Interview.aspx?R=6000436


Papa John’s

PapaJohn’shasdifferentiateditselffromotherpizzabrandsbyprovidingamobileappandtyingittoitsloyaltyprogram,PapaPoints.Usersaccrueonepointper$5spentonfoodthroughonlineormobileordering.Twenty-fivepointsearnsafreepizza.

Engaging and Building Awareness

Customerswhohavewillinglydownloadedanapp,followedabrandonTwitteror“liked”acompanyonFacebookexpectsomethinginreturn—whetheritisdiscounts,contests,rewardsorsimplyafriendlyrapport.Itisimportantforrestaurantstoengagewiththeircustomers—ortheywillleave.

Dunkin’ Donuts

Inthesummerof2010,Dunkin’Donutsranacontest,KeepItCoolatta2:FlavorBoogaloo,inpartnershipwithPandora.Dunkin’Donutssolicitedsummersongsinspiredbytheicedbeverages’flavorsandcreatedachannelontheonlineradioservicefromthebestsuggestions.Thecampaign,whichwaspromotedthroughFacebook,resultedin300,000newFacebookfans.DuringJuneandJuly,Coolattasalesgrewbydoubledigitsoverthesameperiodthepreviousyear.

InaninterviewwitheMarketer,DaveTryder,directorofinteractive&relationshipmarketingatDunkin’Donuts,explainedhowthepromoalsoextendedbeyondsocialmediaandbecameanexampleofmobileengagement—60%oftheaudiencewholistenedtotheDunkin’DonutssummermixonPandoradidsoonamobiledevicevs.40%wholistenedonaPC.

Buffalo Wild Wings

Businesseshavebeenlookingtomovebeyondmerecheck-ins.BuffaloWildWingsisusingSCVNGR,asociallocation-basedgamingplatform,toaddagamingelement.Inabasketball-themedpromotiontakingplaceinQ12011,userswhocheckintolocationsarepromptedtocompletetasksforpoints,liketakingaphotoofthemselveswithafanfromarivalteamandsharingitwiththeirfriends.AppuserscouldwinfreeCoca-ColaoratriptotheNBAfinalswithformerChicagoBullScottiePippen.Inthefirstweek,10,000usersparticipatedin33,000challengesand5,000prizeswereawarded.

WhileBuffaloWildWingsismakingeffortstoincreaseengagementwithitscustomersthroughcontests,thecompanyalsowantsitsmobileuserstoengagewiththeironlinenetworkoffriendsandshareopinionsontopicslikefavoritemenuitemsorflavorchoices.

“We are looking for social engagement…. We want them to be able to tell others what they liked—a beer, a garlic flavor. Our goal is to build frequency.”—Jeremy Burke, brand manager of Buffalo Wild Wings, quoted in The New York Times, January 2011

Kogi

Itisnocoincidencethattheriseofgourmetfoodtrucks,nowacommonsightincitiesacrossthenation,tookoffwiththeexplosionofTwitterandinternet-enabledmobiledevices.In2008,theKogitruckdebutedinLosAngeles,sellingKoreantacosandbroadcastingitslocationaroundthecityusingTwitter.Theunusualhybridcuisine,charismaticownerandatypicalvenuetranslatedintoahugehit.Koginowhasmorethan82,000Twitterfollowers,fourtrucksandalegionofimitatorsincludingAustin,Texas’Chi’Lantrotruck,NewYork’smobileKorillaBBQandMaryland-basedchainCaliforniaTortilla’sadditionofaKoreantacoinJanuary2011.Noonehasamassedthefollowingoftheoriginal,though,andmuchofthathastodowiththepersonality-drivennatureofchefRoyChoi’ssmallbusiness.Hemaintainsanopinionatedblogandregularlypostsphotosofwhatheeats,streetscenesandkitchenshotsonFlickr.Customersarefanaticsaboutthefood,butalsoconnectwiththestorybehindthebrand.

Attracting New Demographics

McCormick & Schmick’s Seafood Restaurants

Mobilecanbeaquickwaytotapintoanewcustomerbase.McCormick&Schmick’s,afinediningchain,turnedtofoursquaretoofferfreehappyhourfoodwiththepurchaseofadrink.

McCormick&Schmick’sestablishedclientelemightnotbeusinglocation-basedservices,butyounger,less-affluentdinerscouldbeenticedtovisittherestaurant.Adrinkatthebarcouldbeagatewaytoencouragefuturerestaurantvisits.

“The strategy is to diversify our guest communication channels and reach a broader guest base, including a younger demographic, through foursquare.” —Jenny Storer, public relations specialist at McCormick & Schmick’s Seafood Restaurants, quoted in Mobile Commerce Daily, November 12, 2010


Harnessing Word-of-Mouth

Dininghasbeensuccessfulatgeneratingbuzz.AccordingtoYouGov’sBrandIndex,SUBWAYgarneredthemostpositiveword-of-mouthofallbrandsin2010,notjustlimitedtorestaurants.NowthatrestaurantsareincreasinglyonFacebook,viralinitiativeshavebecomeevenmoremeasurable.

Boston Market

BostonMarketcurrentlyhasaGoRecommendtabonitsFacebookpagethatencouragesusersto“tellyourfriendswhatyoulovedaboutBostonMarket.”Participantsareenteredinacontesttowin$1,000andtheirpost,seenbyalltheirfriends,includesaBostonMarketcoupon.IninitialtestinginJune2010,thecompanyfoundthatfourcouponswereredeemedforeachpost.

BRAVO! Cucina Italiana

BRAVO!CucinaItaliana,anOhio-basedchainin20states,offersonlineorderingfromitsFacebookpageandallowsusersto“share”thisfunctionalitywithfriendsaswellas“like”individualmenuitems.Thisviralfeaturedrivessalesaswellasprovidesgranularinsightstotherestaurantaboutwhichdishesarethemostpopular.

“One of the questions we frequently ask in research is, ‘Would you refer this restaurant to a friend?’ and the ‘like’ button functions in a very similar way. It’s giving that endorsement to a Facebook user’s network.”—Erik Thoresen, director of research and consulting at Technomic, in an interview with eMarketer, February 2011

Employing Social CRM

Socialmediaisidealforbroadcasting,yetitisequallyimportantforrestaurantstobeawareofwhatisbeingsaidabouttheirbrandandrespondwhennecessary—asacomplimentoracorrective.

Restaurantoperatorsthatarereluctanttoengageinsocialmediacustomerrelationshipmanagementbecausetheyareafraidofwhattheymighthear,shouldnotbehesitanttomonitorinternetchatter.Foodanddininghasthehighestpercentageofpositiveonlineconversationsofallproductcategories,at73%accordingtoaNovember2010KellerFayGroupstudy.

WhetheramajorchainwithacomprehensiveCRMprogramoraformalrestaurantsearchingTwitterformentions,reachingouttocustomers—anddoingsowiththeappropriatetone—iscrucial.

“Companies need to be careful about one-way communication. Social media is as much about listening, gathering feedback and responding to consumers.”—Denise Lee Yohn, brand consultant at Denise Lee Yohn Inc., in an interview with eMarketer, February 2011

Starbucks

Starbucks’MyStarbucksIdeafunctionsasanonlinefocusgroupandasocialnetworkingsite.Atitsmostbasicitisapageforcustomerfeedback,butitisnotwheresuggestionsgotodie.Ideasareparceledintocategories—suchasexperience,productsandinvolvement—andpublicized,ifimplemented.Forexample,frequentrequestsforadrinksizelargerthantheVentiresultedinthenew30-ounceTrenta.Participantsareempoweredandrewardedwithrecognitionfromthecompanyandtheirpeers.Addingasocialnetworkingelement,contributors’ideascanbegiventhumbsupfromotherusers,andthemostpopularmemberseachmonthgetfeaturedonaleaderboard.

“My Starbucks Idea is an opportunity for customers to actually connect directly with business folks and provide ideas and feedback. One of the things we kept hearing was that they wanted to send a drink digitally. So the Starbucks Card eGift was in direct response to that.” —Ryan Records, director global card at Starbucks, in an interview with eMarketer, February 2011

http://totalaccess.emarketer.com/Interview.aspx?R=6000465

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Eleven Madison Park

Twitterhasproventobeapopularchannelforpersonalizingcommunication,thoughthereisafinelinebetweenattentivenessandoverdoingit.InOctober2010,agentlemantweeted“BurgerKingintheairportwaitingformyflighttoNYC.I’llconsiderthismyamuse-boucheforElevenMadisonPark!”ThefollowingdayattheMichelin-starredrestaurantinManhattan—partofDannyMeyer’sUnionSquareHospitalityGroup,operatoroftherapidlygrowinghamburgerchainShakeShack—thatdinerwaspresentedwithaminiaturelambburgerandtoldthattheyhopeditwouldbebetterthanwhathehadeatenattheairport.Thereactioninthefoodcommunitywasmixed.Whatsomemightconsiderattentiveservicecanbeinterpretedbyothersasaninvasionofprivacy.

Greenz

Attheotherendofthespectrum,whenGreenz,aTexas-basedsaladchain,noticedamantweetaboutacompetitor,theytooktheopportunitytoconvincehimtotrytheirestablishmentinstead.TheyeventookhimuponhischallengethatGreenznameasaladafterhim.Thus,theJoesaladwasborn(foroneday),andtheresultswereviewedasasocialmediacoupratherthancreepy.

Thevaryingreactionsshowthatthepublichasdifferentexpectationsforhowacasualrestaurantshouldcommunicatewiththemversushowapurveyorofhautecuisineshould.

Q&A: How do you define effectiveness when social media ROI is hard to measure?

Denise Lee Yohn Brand Consultant

Denise Lee Yohn Inc.

“ItcannotbepurelyafinancialROIbecauseitisverydifficulttotrack,buttherearesomemetricsyoucanuse.Thingslikenumberoffollowersandnumberoffansaresomeindicationifyoucompareyourselftoothersinyourindustry.Thenumberoffansyouhavemaynotnecessarilymeanthattheyarereallyfans,butthesamewouldapplytomostotherbrandsinyourcategory.Ifyouhave10,000fansandanotherbrandinyourcategoryhas50,000,thenyoucouldmakeaprettyfairassessmentthatyou’rebehind.Therearealsolevel-of-engagementmeasurementsandlookingatthequalityofcommunicationyou’rehaving.Areyouhavingdeeper,richerrelationship-buildinginteractionswithconsumers?Ifso,youcanmakesomeassumptionsthatthisisbuildingloyaltyandbrandequity.Ifyouaremakingbetterdecisionsbecauseoftheinputyou’regettingthroughsocialmedia,thatisareturnonyourinvestmentaswell.”

Dave Tryder Director, Interactive & Relationship Marketing

Dunkin’ Donuts

“It’scertainlynotanexactscience.Weuseinternalanalyticsandsomeproxyinformationtotrytounderstandthevalueofthebaseitself.Wedon’tnecessarilylookatitonacampaign-by-campaignbasisintermsofvalue.Ifwe’vegot3millionmembersandfeelthattheaveragerevenuecontributiononanannualbasisis‘X’pereachmember,thenitgetsyoutoapointwhereyoucanactuallyunderstandhowmuchannualrevenuethiskindofaudiencecontrols.And,therefore,itallowsyoutounderstandwhatthevalueoftryingtogrowthataudiencemeans,aswellaswhatthepotentialrevenueimpactcanbeifweareabletopositivelyinfluencethatenvironment.”

Paul Barron Founder & Producer

DigitalCoCo

“Whensomebodytellsyoutheycan’tmeasuresocialmedia,that’sabunchofhooey.We’vegotsomanytoolswithTwitter,Facebook,LinkedIn,YouTubeandgeolocationlikefoursquareandFacebookPlaces.Thisiselectronicsoyoucanseewhat’shappening.Youcanliterallyseethevalue.InsocialmediaIcangoinandlookatmyfoursquarecheck-insforeverylocationIhave.IcangoinandlookatmyYelpcheck-ins.Icanlookatmytweetsandseerealliveinteractionsthatareoccurring.Ican’tdothatwithamagazineorradioad,andIcan’tdoitinanyothertypeofadvertising.”

Key Takeaway:Socialmediamaycreatebuzzbutit’shardtogaugehowittranslatesintosales.Companiesmustdeterminewhichmetricsaremeaningfultotheirbusiness,thoughit’salsoworthusingqualitativebenefitslikeincreasedloyaltyanddeeperengagementasindicatorsofsuccess.

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Q&A: What do restaurant operators need to know about social media?


Dunkin’ Donuts

“Haveasolidplanforwhyyouneedtobethere,whyit’simportantforyourbusinessandwhatyou’regoingtodoonceyougetthere.Onceyou’vesettheexpectationthatyou’regoingtohaveapresence,fansofyourbrandwillexpectyoutobeengagedandresponsivetotheirneeds.Ifyouwalkawayfromthat,you’regoingtodoalotmoredamagethanifyouhadneverstartedinthefirstplace.”

Erik Thoresen Director of Research and Consulting

Technomic

“Themostcommonthingweseeispeoplegetintosocialmedia,andthentheyabandonit.Theymoveonwithoutgivingitenoughtimetoreallytakeshape.Sotheymighttweetforamonthandhave‘FollowusonTwitter’signsupattheirrestaurant,butthendon’tdoanythingonTwitterafterthatanditlosesmomentum.Thebenefitthatrestaurantsstandtogainisbybuildingthatnetworkoffollowersovertime.It’samatterofsaying,‘I’mgoingtoinvestindoingthis.’”


DigitalCoCo

“Thebiggestchallengeeveryrestaurantoperatorfacesisgettinginvolved.Oncetheyareinvolved,theproblemistheydon’treallyknowwhattodofromastrategicstandpoint.That’scriticaltoaguywho’sworkingonthinmargins.Theyhavetoknowwhatstrategymeansandhaveaclearroadmaptoresults.Audiencemeans,‘Howmanycustomerscanwereach?’Thestrategyis,‘Nowthatwehavethem,whatarewegoingtofeedthemintermsofcontentormessage?’Nowthatwe’refeedingthem,‘Whatcanwelearnfromthem?’That’swherethereallygoodbrandswillstarttonarrowthegap.Understandingeverythingfromsocialdemographicstointerestlevels,markethotspots,culinarytrends[and]consumertrends—allofthat’sgoingtocomefromwithintheoperators’ownaudience.There’sabigopportunity.”

Key Takeway: Oncerestaurantshavecommittedtosocialmedia,theyneedtocraftastrategy,decidehowtheywillengagewithcustomers,whatvoicetheywanttoprojectand,mostimportantly,developaplantomaintainconsistency.Havingnoonlinepresenceatallisworsethanpostingsporadically,notrespondingtocomplaints(orkudos)andhavingarobotic,self-promotingpersona.Andthatisjustthebeginning:Successfulrestaurantswillusesocialmediatolearnabouttheirconsumersandprovideabetterproducttosuittheirneeds.

Q&A: What is the future of mobile and social media?


Dunkin’ Donuts

“Dataisthekey.Theabilitytotakeacompany’sdataandthenusemobiletodeployprogramsandpromotionsthatenableyoutoeffectivelyreachconsumersinawaythatyouknowwilldrivebusinessisreallythenextholygrail.”

Denise Lee Yohn Brand Consultant

Denise Lee Yohn Inc.

“Wewillseemoretime-based,location-based,specificmessagingorspecificuseofsocialmedia,inthesensethatitwon’tallbeaboutjustbroadawareness.Peoplewillbeusingittodrivetraffictoaparticularlocationataparticulartime.”


DigitalCoCo

“Ithinksocialisasteppingstoneforusrightnow.Gainingconsumerawarenessistheultimategoal.Fiveor10yearsago,itwasthewebandemail.Todayit’ssocial.Fiveor10yearsfromnow,it’sgoingtobeanewecosystembeyondwhatweknowtodayastheweb.”

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Erik Thoresen Director of Research and Consulting

Technomic

“Thetoolswehaven’tseencometofruitionyetareonesthatreallyempowerrestaurantstoberesponsivetowhat’sgoingonatalocalorregionallevel.Restaurantswillbeabletoruntheirownpromotionsbasedonlocaleventsratherthanonbignationaladvertisingbudgets.”

Key Takeaway:Nomatterwhatthewebevolvesinto,marketingwillbecomemorenarrowlyfocusedandconsumer-specific.Mobileandsocialmediaallowrestaurantoperatorstolearnmoreabouttheircustomersthaneverbeforeanddevelopnewwaysofpersonalizingirresistibleoffers.

Conclusions

Restaurants must dedicate resources and remain committed.Developingaunifiedvisionandstrategyisimportantforrestaurantsofallsizes.EvenMcDonald’swascriticizedbysomefornotappointingasocialmediadirectoruntilApril2010,latetothegameforsuchahugebrand.Andonceadecisionismadetoengageinsocialmedia,timeneedstobeallottedforparticipation,whetherthepersonresponsibleforpostingtoblogs,FacebookorTwitterisarestaurantowner,outsourcedspecialist,chef,PRinternorcashier.ItisnotenoughtolaunchaFacebookpageandexpectaninstantaudience.Restaurantoperatorsneedtogivecustomersareasontofollowthemandbepreparedtointeractconsistentlywhentheydo.

Tailor messages for the intended audience. Anacronym-filled,140-charactertweetcanconveyvolumesaboutabrand.TheTwitteraccountofTheCapitalGrille,anupscalechain,ismaintainedbytheirsommelierwhoofferswinepairingsuggestions.Ontheotherhand,Carl’sJr.’sismorecasualandretweetscheekyresponses,perfectfortheircoredemographicof“young,hungryguys.”Butnoteverycustomerisreadyformobileorsocialmedia.WhileDenny’sisactiveonTwitterandFacebook,toreachitsloyalover-50clienteleitoffereda20%discountduringcertainhourswithanAARPcardandtookoutfull-pageadsinAARPTheMagazine.Addingmobile-phone-scannableQRcodestotheadwouldnotmakesenseforthisgroup,butitmightworkintheotherdirection,appealingtoyoungercustomers.

Use channels appropriately.Blogsareidealforaddingtransparencytoarestaurantoperationandgivemorecontroltothecompany.Thisiswhereinterviewswithstaff,commercials,recipesandbehind-the-scenesvideosandcookingdemoscanthrive.SyncingupTwitterandFacebookaccountssothatthesamecontentisbeingbroadcastonbothcanbeamistakeforbusinesses.Twitterisbestusedforshorter,morefrequentpromosandreal-timeinteractions,whileFacebookissuitedformoresubstantialcontent,sharingstoriesandfanphotos,promotingcontestsandasaninformationaltool.Itisalsoimportantnottoover-messageandkeepthecontentinteresting.AnApril2010ExactTargetandCoTweetsurveyshowedthatthetopreasonusers“unlike”aFacebookpageisbecausetheyreceivetoomanyupdates.Consumers“unfollow”onTwitterprimarilybecauseofdullandrepetitivemessages.


Mobile is in its early stages, but will continue to change how consumers interact with restaurants. Mobileisbeingusedforeverythingfromsendingcouponstoentertainingwithin-appgames,providingreviews,actingasaloyaltycardandservingasarestaurantlocator.Newservicesareconstantlyspringinguptofillthesenichesandmore.Nowinthreecitieswithninemoreplanned,Scoutmobfunctionslikeadailydealsiteexceptthelocalrestaurantdiscountsarefreefortakersandsentinatextmessage,nosmartphonenecessarytoredeem.Foodspottinggoesbeyondonlinecustomerreviewsanddirectlytofavoriterestaurantdishes,creatingahyperlocaluser-generateddiningguide.Participantsuploadphotosofwhattheyeatsotheycanberatedbythepubliconlineorviaamobileapp.Location-basedmarketingwillbecomemoresophisticated.Itisnothardtoimaginearetailapplikeshopkickbeingadaptedfortherestaurantindustry:Usersarepassivelycheckedin,awardedpointsandshownpersonalizedofferswhentheyenter.Dinerswillhavecustomizedsuggestionsanddiscountspushedtotheirphonesforexactlywhenandwheretheywanttoeat.

Endnotes

Endnotenumberscorrespondtotheunique

six-digitidentifierinthelowerleftcornerofeach

chart.Thechartsfromthereportarerepeated

beforetheirrespectiveendnotes.

125313

12

Restaurant Segment SnapshotDefinition Examples Quick stats

Quick serviceAlso known as fast food or QSR, items are inexpensive, servedefficiently and purchased at a counter or a drive-thru, frequently to-go.

McDonald's, Taco Bell,SUBWAY

$167.7 billion in salesforecast for 2011, up 3.3% over 2010

42% of consumers visit a QSR at least once per month

Generate 78% of industry traffic

Fast casual

Limited service, but withmore emphasis on styleand quality than a QSR, generally with higherprices as well.

Chipotle Mexican Grill, Panera Bread, Pei Wei Asian Diner

70% of consumers think fast casual is healthier than quick service

$28.4 billion sales projected for 2014, a 24% increase from $23 billion in 2010

Sales expected to grow5.8% in 2011

Casual dining

Table service, moderatelypriced and family-friendly,often with a separate barand full menus includingappetizers, entrees anddesserts.

Olive Garden, Applebee's,The Cheesecake Factory

85% experienced highergrowth in 2010 than 2009

Accounts for more than 1/3 of industry sales

31% of men ages 18–34increased visits in 2010 vs. 2009

Fine diningMore formal and expensive than casual dining with a focus on atmosphere, service and quality.

Morton's The Steakhouse,McCormick & Schmick'sSeafood Restaurants, Roy's

Experienced the strongestturnaround in 2010, mostly due to increasedbusiness/travel spending

81% of fine diners prefer a local, unique restaurantover an upscale national chain

86% of restaurant operators expect sales trends to improve

Source: compiled by eMarketer, 2011125313 www.eMarketer.com

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Citation: Datainthischartwascompiledfromthefollowingsources—AlixPartners,Mintel,NationalRestaurantAssociation,PackagedFacts,RBCCapitalMarkets,RestaurantRXConsulting,Sandelman&Associates,TechnomicandTheNPDGroup.


Related Information and Links

Denise Lee Yohn Inc. http://deniseleeyohn.com

DigitalCoCo http://www.digitalcoco.com

Nation’s Restaurant News http://www.nrn.com

National Restaurant Association http://www.restaurant.org

The Nielsen Company http://www.nielsen.com

Technomic http://www.technomic.com

Yahoo! http://www.yahoo.com

ContacteMarketer,Inc. Toll-Free:800-405-084475BroadStreet OutsidetheUS:212-763-6010Floor31 Fax:212-763-6020NewYork,NY10004 [email protected]

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digital dining: chain restaurants add social media, mobile to the...

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