Scope and Themes
What you need to know
Definition
Data sources
Mintel Menu Insights
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Independents have independence
Independents especially prone to economic impacts
Social networking and shopping sites a boon for independents
Theme restaurants stand out from the crowd
Traditional American fare dominates
Independents well suited for craft beer and cocktail culture trends
Chains visited more frequently than independents, particularly for lunch
Willingness to pay more
Social shopping sites catch on
Unique menu items a leading draw; speed of service a drawback
Work needed for promotions and limited time offers
Food and menu important drivers, but value also holds sway
Insights and Opportunities
Stand out from the crowd
Be a part of the community
Indie=local
Figure 1: Interest in local sourcing and sustainability, September 2010
Independent doesn’t mean going it alone
Food trucks
Taking customer interaction to the next level
Inspire Insights
Trend—Patriot Games
Trend—Secret Secret
Segment Analysis
Fine dining: St. Elmo Steakhouse
Figure 2: St. Elmo menu components, Q2 2011
Figure 3: St. Elmo cuisine and beverage types, Q2 2011
Casual dining: Shanghai Jazz
Figure 4: Shanghai Jazz cuisine types, Q2 2011
Figure 5: Shanghai Jazz alcoholic drinks on the menu, Q2 2011
Family midscale: K38 Baja Grill
Figure 6: K-28 Baja Grill cuisine types, Q2 2011
Figure 7: K-28 Baja Grill beverage types, Q2 2011
Fast casual: Augustino’s Rock and Roll Deli
Figure 8: Augustino’s menu components, Q2 2011
Market Drivers
Key points
Economic factors
Unemployment and underemployment rate recovery is slow and tenuous
Figure 9: Unemployment and underemployment rates, January 2007-June 2011
Operator confidence waning
Figure 10: Restaurant Performance Index, January 2009-May 2011
Consumer confidence regularly fluctuating
Figure 11: U.S. real disposable personal income growth, January 2007-May 2011
Figure 12: University of Michigan Consumer Sentiment Index, March 2007-May 2011
The rising price of food and beverages
Figure 13: Consumer Price Index for food at home and food away from home, 2009-11
Ubiquity of chain restaurants obscures the little guy…
…but independents better able to adapt to trends
Government-mandated nutritional disclosures favor independents
Marketing Strategies
Overview
Social media
Figure 14: Social media usage, by age, September 2010
Facebook
Social shopping/daily deals
Groupon
LivingSocial
Poggled
Restaurant.com
Location-based marketing
Foursquare
Online review sites
Zagat
Yelp
Television ads
Figure 15: Casa Blanca Mexican Restaurant & Cantina TV ad, 2010
Figure 16: Jose Pepper’s TV ad, 2010
Figure 17: Weck’s TV ad, 2011
Figure 18: Weck’s TV ad, 2011
Figure 19: Panini’s TV ad, 2011
Figure 20: Hy’s Steak House TV ad, 2011
Menu Insights Analysis: Independent Restaurant Menu
Overview
Traditional American is leading cuisine type
Figure 21: Top 10 cuisine types on independent restaurant menus, by incidence, Q1 2008-Q1 2011
Sushi leading food type at independent restaurants
Figure 22: Top 10 items on independent restaurant menus, by incidence, Q1 2008-Q1 2011
Figure 23: Top 10 items on independent restaurant menus, by incidence and price, Q1 2008-Q1 2011
Menu Insights Analysis: Independent Restaurant Flavors
Overview
Garlic strongest ingredient on menus
Figure 24: Top 10 flavors on independent restaurant menus, by incidence, Q1 2008-Q1 2011
Menu Insights Analysis: Independent Restaurant Beverage Offerings
Overview
Premium lagers’ and pale ales' growth lends credence to craft beer movement
Figure 25: Top 10 alcoholic beverages on independent restaurant menus, by incidence, Q1 2008-Q1 2011
Figure 26: Top 10 nonalcoholic beverages on independent restaurant menus, by incidence, Q1 2008-Q1 2011
Independent Restaurant Usage
Patrons more likely to eat at chain restaurants
Figure 27: Independent restaurant usage, March 2011
Figure 28: Independent restaurant usage, by age, March 2011
Figure 29: Independent restaurant usage, by household income, March 2011
Lack of options and inconvenient locations hold back indies
Figure 30: Reasons for not dining at independent restaurants, March 2011
Independent Restaurants and Price Sensitivity
Patrons willing to pay more at independents
Figure 31: Consumer price sensitivity to independent restaurants, March 2011
Figure 32: Consumer price sensitivity to independent restaurants, by age, March 2011
Figure 33: Consumer price sensitivity to independent restaurants, by household income, March 2011
Amount willing to spend caps at 10% more
Figure 34: Willingness to spend more at independent restaurants, by gender, March 2011
Figure 35: Willingness to spend more at independent restaurants, by age, March 2011
Figure 36: Willingness to spend more at independent restaurants, by household income, March 2011
Social Shopping Site Usage
Social shopping sites catching on quick
Figure 37: Social shopping site usage, March 2011
Figure 38: Social shopping site usage, by gender, March 2011
Figure 39: Social shopping site usage, by age, March 2011
Figure 40: Social shopping site usage, by household income, March 2011
Most discount shoppers intend to return
Figure 41: Post discount purchase restaurant usage, March 2011
Independents versus Chains
Independents need to work on speed of service and promotions
Figure 42: Independents outperform chains, March 2011
Figure 43: Independents outperform chains, by age, March 2011
Figure 44: Independents outperform chains, by household income, March 2011
Figure 45: Chains outperform independents, March 2011
Figure 46: Chains outperform independents, by age, March 2011
Purchase Drivers at Independent Restaurants
Value important, but food and menu are leading drivers at independents
Figure 47: Purchase drivers at independent restaurants, March 2011
Figure 48: Purchase drivers at independent restaurants, by household income, March 2011
Value and convenience top draws at chains
Figure 49: Purchase drivers at chain restaurants, March 2011
Figure 50: Purchase drivers at chain restaurants, by age, March 2011
Attitudes toward Independent and Chain Restaurants
Independents more expensive but more attuned to community
Figure 51: Attitudes toward independent and chain restaurants, March 2011
Figure 52: Attitudes toward independent and chain restaurants, by age, March 2011
Figure 53: Attitudes toward independent and chain restaurants, by household income, March 2011
Cluster Analysis
Infrequent Diners
Demographics
Characteristics
Opportunity
Environmentally Conscious
Demographics
Characteristics
Opportunity
Characteristic tables
Figure 54: Independent restaurant consumer clusters, March 2011
Figure 55: Chain and independent restaurant usage, by independent restaurant consumer clusters, March 2011
Figure 56: Willingness to spend more at independent restaurants, by independent restaurant consumer clusters, March 2011
Figure 57: Social shopping site usage, by independent restaurant consumer clusters, March 2011
Figure 58: Chain and independent restaurant performance, by independent restaurant consumer clusters, March 2011
Figure 59: Purchase drivers at chain restaurants, by independent restaurant consumer clusters, March 2011
Figure 60: Purchase drivers at chain restaurants, by independent restaurant consumer clusters, March 2011
Figure 61: Attitudes toward independent and chain restaurants, by independent restaurant consumer clusters, March 2011
Demographic tables:
Figure 62: Independent restaurant consumer clusters, by gender, March 2011
Figure 63: Independent restaurant consumer clusters, by age, March 2011
Figure 64: Independent restaurant consumer clusters, by household income, March 2011
Figure 65: Independent restaurant consumer clusters, by race, March 2011
Figure 66: Independent restaurant consumer clusters, by Hispanic origin, March 2011
Cluster methodology
Appendix: Trade Associations