CONSUMER & RESTAURANT MENU TRENDS: THE CLEAN LABEL … · 2018-08-25 · Clean label menu mentions spiked 19% in 2016 at commercial operations 1,191 299 1,419 317 Menu incidence Operators

© 2017 Technomic Inc.

CONSUMER & RESTAURANT MENU TRENDS: THE CLEAN LABEL INFLUENCE

March 28-29, 2017

© 2017 Technomic Inc. 2

Our research ❶

Consumer insights ❷

Operator insights ❸

Menu insights ❹

Key areas of opportunity ❺

Table of contents


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CONSUMER INSIGHTS

4


DEFINITIONSof health ARE CHANGING

Source: Healthy Eating Consumer Trend Report, Technomic

My definition of healthy food items has

changed over the past two years Agree & agree completely

44%

33%

56%

43%

18-34

35+

Male Female

% Overall

51%

38%

“Avoid processed foods”

“Be more aware of additives”

“Reduce my meat consumption”

“Be well-rounded: eat healthy,

indulge occasionally and be active”

“Include mental and physical health”

“GMO-free and is organic”

“Include feeling good emotionally”


72%

68%

70%

68%

66%

65%

66%

58%

59%

48%

77%

80%

75%

74%

76%

74%

70%

69%

59%

66%

Preservative-free

Natural

No artificialsweeteners

Hormone-free

Unprocessed

Organic

Antibiotic-free

GMO-free

Clean

Real

Male Female6

Six out of 10 consumers feel that CLEANclaims align with greater healthfulness

Perceived healthfulness: natural & organic terms Slightly & much more healthy

% Overall

75%

71%

74%

72%

71%

70%

68%

64%

59%

57%



What does clean food mean

to you? Clean food is…

“The absence of additives”

“All-natural, no artificial flavoring”

“Clean food is local, sustainable, organic,

environmentally safe because of the way it is grown”

“An item that is GMO-free, organic and fresh”

“Food that is raw and natural with no

added ingredients or preservatives and the

type of food that nourishes your body”

“Unprocessed food”“Food that hasn’t been treated with

chemicals and is grown sustainably”

“Pesticide- and steroid-free”

“Washed and free of contamination”

“No extra stuff, organic ingredients, keeping it clean”

Consumers’ definitionsof clean eatingmostly focuson the absenceof additives



Which of the following claims, if any, do you associate with clean eating? Select all that apply.


61%

58%

53%

51%

50%

49%

45%

26%

23%

19%

16%

15%

14%

No artificial ingredients

Preservative-free

Fresh

Hormone-free

Unprocessed

Antibiotic-free

Non-GMO

Gluten-free

Vegetarian/vegan

Local

Seasonal

Sustainable

Authentic


The clean label consumer skews female, millennial and slightly higher income

54%Caucasian

33%Millennial

28%HH Income

$50K-$100K

The clean

label

consumer51%Female



13%

11%

9%

11%

10%

12%

11%

10%

9%

7%

30%

28%

26%

33%

26%

28%

26%

26%

18%

24%

37%

34%

36%

26%

34%

29%

31%

30%

41%

36%

Natural

Unprocessed

Preservative-free

Organic

Hormone-free

Clean

Antibiotic-free

GMO-free

No artificial sweeteners

Real

Signficantly more (>5% increase) Slightly more (≤5% increase) No more

10

40% of consumers would pay more for items featuring clean claims…

72%

70%

80%

71%

70%

69%

68%

67%

67%

67%

Impact on purchase: natural & organic termsI’d be more likely to buy and am willing to pay___ for…

Up

from

2014



…and a similar proportion (42%) assume clean claims positively impact an item’s taste

53%

49%

44%

43%

42%

40%

39%

33%

32%

30%

42%

46%

37%

42%

52%

46%

49%

58%

60%

59%

5%

5%

19%

16%

6%

14%

12%

8%

8%

11%

Natural

Real

No artificial sweeteners

Unprocessed

Clean

Organic

Preservative-free

Hormone-free

Antibiotic-free

GMO-free

Slightly/much more tasty No impact on taste Slightly/much less tasty

Impact on taste: natural & organic termsFood/beverage described as____ is….

(up from 45% in 2014)

(up from 33% in 2014)




Consumers seek THE TRUTH from restaurants

would like restaurants to

be more TRANSPARENT

about what’s in their food86%



OPERATOR INSIGHTS

13


Operators understand they must meet evolving consumer demands

Proportion of operators agreeing that the following sustainability factors

will have a great or moderate influence on purchase decisions in the future

89%

Health & wellness

84%

Buying local

84%

No chemicals/pesticides

82%

Clean labels

82%

Sustainablyproduced

79%

Humane animaltreatment

79%

No hormones/antibiotics

Source: Foodservice Planning Program Operator Survey, Technomic



Clean label menu mentions spiked 19% in 2016 at commercial operations

1,191

299

1,419

317

Menu incidence Operators offering

2015 2016

31

31

46

47

87

125

1,052

26

23

48

45

95

104

850

Kids menu

Side/extra

Dessert

Add-on

Nonalcoholbeverage

Appetizer/starter

Entree/main dish

Clean label claims on the menu Clean label claims, by mealpart

Source: MenuMonitor, Technomic


Overall, more commercial operators menued clean label claims in 2016, compared to 2015

22.0%

9.0%

24.6%

19.8% 19.0%

35.2%32.3%

45.6%

Overall Quick Service Fast Casual Midscale TraditionalCDR

ContemporaryCDR

Upscale CDR Fine Dining

2015 20.7% 8.0% 22.1% 17.9% 17.0% 30.4% 37.1% 49.3%

Operator penetration By segment (2016)




Commercial operators are increasingly calling out food that is free of any additives

Sustainably caught +1,100.0%

No steroids/steroid-free +250.0%

Humanely raised +159.0%

GMO-free +138.7%

Cage-free +32.3%

Top “clean” keyword mentions on menus

Fastest-growing clean keywords (YOY)

4,359

2,642

1,234

343

275

213

181

176

134

117

79

74

70

53

41

Organic

Natural

Local

Free-range

Grass-fed

Cage-free

Sustainable

Hormone-free

Antibiotic-free

Humanely raised

Grade A

GMO-free

Fair trade

Grain-fed

Naturally raised



Beef-centric dishes featured more clean labeling in 2016 at commercial operations

Fastest-growing items featuring clean labelsTop items featuring clean labels

300.0%

142.9%

133.3%

120.0%

90.9%

83.3%

75.0%

66.7%

57.1%

50.0%

45.5%

37.5%

37.5%

37.5%

29.0%

25.0%

23.5%

18.4%

13.6%

13.6%

Rib-eye Steak

Filet/Filet Mignon

Turkey Sandwich/Wrap

Strip Steak

Salmon

Scrambled Eggs

Chicken Strips/Nuggets

Bacon, Egg & Cheese

Fish Sandwich/Wrap

Chicken Salad

Other Chicken Dish

Grilled Chicken

Barbecue Burger

Breakfast Platter

Chicken Sandwich/Wrap

Chicken

Hamburger

Specialty Burgers

Coffee/Filter Coffee

Bacon Cheeseburger

103

49

32

29

25

25

24

21

21

21

21

18

17

16

14

13

12

12

12

12

87

38

34

28

22

22

16

9

11

17

22

17

7

11

8

18

3

11

12

12

Specialty Burgers

Chicken Sandwich/Wrap

Cheeseburger

Burrito/Chimichanga

Coffee/Filter Coffee

Bacon Cheeseburger

Chicken Salad

Turkey Sandwich/Wrap

Salmon

Hamburger

Specialty Salad

Mexican Bowl

Filet/Filet Mignon

Other Chicken Dish

Chicken Strips/Nuggets

Roasted Chicken

Rib-eye Steak

Caesar Salad

Taco/Taquito

Turkey Burger

2016 2015Source: MenuMonitor, Technomic


Clean label menu mentions were down overall in 2016 at noncommercial operations

310

85

296

80

Menu Incidence Operators Offering

2015 2016

1

5

6

8

20

37

219

1

7

3

8

22

40

229

Add-on

Dessert

Kids Menu

Nonalcohol Beverage

Side/Extra

Appetizer/Starter

Entree/Main Dish

Clean label claims on the menu Clean label claims, by mealpart



Overall, fewer noncommercial operators menued clean label claims in 2016

Operator penetration by segment (2016)

23.8%

15.0%10.0%

66.1%

34.8%

20.0%

Overall College &Universities

Hospitals Lodging Recreation Retailers

2015 25.3% 18.0% 10.0% 64.3% 34.8% 24.0%



Cage-free claims grew on menus in 2016, referencing

egg dishes, along with sustainable and unprocessed

claims

LOCAL remains the leading clean label claim, despite declines in 2016 at noncommercial

Clean label mentions by claim type

157

77

24

17

15

14

10

4

2

1

N/A

N/A

165

64

20

18

26

9

14

5

2

1

1

1

Local

Cage-free

Sustainable

Grass-fed

Free-range

Unprocessed

Locally sourced

Fair trade

Locally farmed

Sustainably sourced

Hormone-free

Sustainably raised



Breakfast items featured more clean labeling in 2016 at noncommercial operations, compared to 2015

Fastest-growing items featuring clean labels

100.0%

60.0%

50.0%

44.4%

25.0%

20.0%

20.0%

16.7%

Shrimp

Eggs Benedict/Florentine

Other Omelet

Breakfast Platter

Other Nonbreaded Protein

Quiche/Frittata

Roasted Chicken

Create-Your-Own Omelet

Top items featuring clean labels

13

13

12

10

8

7

7

6

6

6

6

6

6

5

5

4

4

4

4

3

9

13

10

10

5

6

7

3

4

5

6

8

11

4

7

2

2

3

5

1

Breakfast Platter

Crepes/Blintzes

Quiche/Frittata

Cheese/Cheese Platter

Eggs Benedict/Florentine

Create-Your-Own Omelet

Eggs Any Style

Shrimp

Other Omelet

Roasted Chicken

Burrito/Chimichanga

Cheeseburger

Specialty Burgers

Other Nonbreaded Protein

Scrambled Eggs

Specialty Salad

Other Salads

Steak & Eggs

Hamburger

Mixed Vegetables



MENU INSIGHTS

23


Clean label on the menu

Tuscan Chicken

Sandwich

Hand-Breaded, No Antibiotics, Vegetarian-Fed, American Humane

Certified. Combo Meal Includes Regular Fry And Regular Soda.$5.69

Apple Pear Waffle

Whole-Grain Belgian Waffle Topped With Caramelized Apple And Pear

Compote, Whipped Greek Yogurt, Pure Maple Syrup. Our 100% Whole-

Grain Waffles Are Made From Scratch Daily Using Cage-Free Eggs

And Just A Hint Of Turbinado Sugar. All Waffles Are Served With

Whipped Butter And Pure Maple Syrup.

$7.50

Canederli Con

Spinaci

Canederli Con Spinaci Free-Range Chicken Broth With Spinach And

Ricotta Dumplings Topped With Grana Padano. Starter Option On The

Taste Of Trentino-Alto Adige Menu.

$9.50

Grilled Chicken BLTA

Natural Cage- And Hormone-Free Chicken, Rosemary Parmesan

Bacon, Avocado Mash, Tomato, Green Leaf, Sage And Garlic Aioli,

Honey Wheat Bun.

$11.99

Spinach And Feta

Burger

Cooked To A Juicy Medium. Served With Fries. Our Beef Is Humanely

Raised, All-Natural And Vegetarian-Fed.$13.00

Midwest Omelet

Local Illinois Ham Off The Bone And Applewood Smoked Bacon With

Wisconsin White Cheddar. All Egg Dishes Come With House Potatoes

And Toast. Gluten-Free.

$12.50

Billy Barou Nachos

Served With Your Choice Of Protein Along With Beans, Moe’s Famous

Queso, Pico De Gallo, Jalapenos And Black Olives. Protein Options

Include Grass-Fed Steak, All-Natural Chicken, Grain-Fed Pulled Pork,

100% Ground Beef Or Organic Tofu.

$8.99


Clean label on the menu

Best Western Plus

Beach Resort

Monterey—Cafe

Beach Restaurant

Black Forest Ham

Omelet

Black Forest Ham, Cheddar Cheese. Made With Three Cage-Free Eggs

Served With Breakfast Potatoes And Choice Of Toast.$14.00

Lambeau Field—1919

Kitchen & Tap

Free-Range Half

Chicken

Black-Eyed Peas, Sweet Corn, Roasted Red Peppers, Buttered Corn

Milk.$17.00

University Of

California At Davis—

Tercero Dining Hall

Grass Fed Burger Tomato Street Grill—Fresh Grilled. -

Disney's Hollywood

Studios At Walt

Disney World—The

Hollywood Brown

Derby

Local Greens Salad

With Champagne

Vinaigrette

Florida Blueberries And Heirloom Apples, Laura Chenel Goat Cheese,

Spiced Candied Pecans.$11.00

University Of

Vermont Medical

Center

Cheddar Cheese Plate Variety Of Local Cheddar Cheese, Served With Crackers. -

New York Palace

Hotel—Room ServiceEggs Benedict

Canadian Bacon, Toasted English Muffin, Hollandaise Sauce, Breakfast

Potatoes. All Eggs Are Cage-Free And Locally Sourced. Served Daily

From 6:00 A.M. Until 11:30 A.M.

$27.00

Cornell University—

Robert Purcell

Marketplace Eatery

Cajun Tofu

Hot Traditional Station. 100% Trans Fat-Free. 100% Whole-Grain,

Lower In Fat, Sugar And Salt, And Made From Unprocessed

Ingredients.

-


CLEAN LABELING NEWS

Papa Murphy’s

Pizza began serving

antibiotic-free chicken

Dickey’s Barbecue

Pit rolled out chicken that is

antibiotic- and hormone-free,

vegetarian-fed and humanely

raised

McDonald’sremoved

some artificial

preservatives

from its meats and eggs

Pizza Hut removed

preservatives BHA and BHT from

all meats, antibiotics from chicken

and preservatives from cheese

Panera finished its

goal of creating

a 100% clean

menu


CLEAN LABELING NEWS TO EXPECT

Blaze Pizzaannounced the removal

of artificial additives

with its Keepin’ It Real

initiative (2017)

Taco Bell announced plans

to eliminate all antibiotics from

its chicken at units in the U.S.,

remove most preservatives and

other additives from its food at

its U.S. restaurants and use

100% cage-free eggs by 2018

Wendy’s plans to

source smaller chickens

and will also eliminate

the use of antibiotics

Burger King/Tim

Hortons intends to

eliminate the use of

antibiotics in its poultry

supply in the U.S. by 2017

Arby’s plans to serve only antibiotic-free chicken

and to remove all artificial flavors and colors from

menu items starting in 2017; the chain plans to serve

only cage-free eggs by 2020

Chick-fil-A plans to

serve only antibiotic-free

chicken by 2019 and cage-

free eggs by the end of

2026

And beyond restaurants…

Sheetz, Compass Group,

Sodexo, Six Flags,

Kroger, Publix committed

to cage-free eggs by 2025/2026


But…

28

Some chains like Chipotle’s

Tasty Made have gone the

opposite direction

Responsibly raised, hormone- and

antibiotic-free meat (over $6)

Conventionally raised beef ($4.10)


Other major menu trends impacted by the clean label movement



Organic is mainstreamChick-fil-A added its first organic kids item, Honest

Kids’ Appley Ever After juice, and is evaluating

adding other organic items


Consumers say they would be more

likely to purchase beverages that are

naturally sweetened (61%), all-natural

(59%), free of artificial ingredients

(55%) and free of HFCS (50%).

Natural sweeteners in beverages

Preferred beverage sweeteners

19%

18%

15%

8%

8%

10%

6%

5%

6%

21%

14%

14%

13%

10%

5%

6%

6%

4%

White/granulated sugar

Cane sugar

Honey

Stevia

Sucralose

Brown Sugar

Saccharin

Aspartame

Agave nectar/syrup

18-34 35+

20%

16%

14%

11%

% Overall

9%

7%

6%

5%

6%

Q: Which types of sweeteners do you prefer for your beverages, either those already included in

the beverage or those you add yourself? Select all

Source: Beverage Consumer Trend Report, Technomic



of consumers say that

food that has no artificial

sweeteners is healthier

Natural sweeteners in food

OPPORTUNITIES

Ninety Nine Restaurants’

Roasted Maple Pork Tenderloin

72%

Sugar

Maple

Agave

Honey

Real-fruit jam



Real butter, fat

PDQ

Popeyes Louisiana Kitchen

38%of consumers

consider some types of fats to be good

for them



Better proteins

Chili’s Grill & Bar unveiled

Hand-Crafted Burgers this

summer, with an optional grass-

fed beef patty raised without

hormones or antibiotics


Key areas of opportunity

Build trust through transparency1

Packaging matters2

Keep up on evolving trends3

Know your customer4

Questions?

312-876-0004 | [email protected] | technomic.com

LIZZY FREIERManaging Editor

[email protected]

AIMEE HARVEYManaging Editor

[email protected]

Documents

CONSUMER & RESTAURANT MENU TRENDS: THE CLEAN LABEL … · 2018-08-25 · Clean label menu mentions spiked 19% in 2016 at commercial operations 1,191 299 1,419 317 Menu incidence Operators