2020
9
US Foodservice Loyalty Market Report 2020
2020-08-27T14:05:57+01:00
OX987028
3695
122787
[{"name":"Foodservice","url":"https:\/\/store.mintel.com\/industries\/foodservice"}]
Report
en_GB
“Restaurant business is severely negatively impacted by the ongoing COVID-19 crisis, and while restaurant loyalty won’t be enough on its own to keep restaurants in business, companies will still need…

US Foodservice Loyalty Market Report 2020

£ 3,695 (Excl.Tax)

Description

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Foodservice Loyalty: Incl Impact of COVID-19 – US market, and the behaviours, statistics, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

Despite cautious re-opening, the restaurant business continues to be crippled by the ongoing COVID-19 crisis. Diner loyalty is more important now than ever. Loyal restaurant customers – or those who typically purchase from a preferred restaurant multiple times a month, at minimum – are more likely to order restaurant takeout and delivery and to increase their usage of these services during the pandemic. They want to continue enjoying their favorite foods and beverages as well as support their favorite restaurants during hardship.

All reports purchased from the Mintel Store now come with free access to our COVID-19 Global Insights Hub, allowing you to understand how industries and consumer behaviour is changing worldwide.

 

What does the COVID-19 Global Insights Hub give you access to?

  • Over 450 pieces of research (with more published each week) addressing markets across the globe.
  • Discover how people in countries at different stages of the crisis are adjusting to the ‘new normal’.
  • Trending industries which have seen growth due to the changes in circumstance.
  • Our latest consumer research surveys, allowing you to see customers views right now.

Expert analysis from a specialist in the field

Written by Jill Failla, a leading analyst in the Foodservice sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Restaurant business is severely negatively impacted by the ongoing COVID-19 crisis, and while restaurant loyalty won’t be enough on its own to keep restaurants in business, companies will still need to strategically leverage existing loyal customers to help grow now-essential off-premise business as well as refill their dining rooms in 2020 and beyond Jill Failla
Senior Foodservice Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Definition
  2. Executive Summary

    • Market overview
      • Figure 1: Total US revenues and forecasted sales ranges of restaurants and eating places*, at current prices, 2014-24
    • Impact of COVID-19 on foodservice loyalty
      • Figure 2: Short, medium and long term impact of COVID-19 on Foodservice Loyalty, June 2020
    • Top takeaways
    • The issues
    • Restaurant purchases are becoming a lower priority
      • Figure 3: COVID-19 spending priorities, April-May 2020
    • Women are even more likely to cut dining out in a recession
      • Figure 4: Spending cuts after job loss – NET any rank, by gender, November 2019
      • Figure 5: Restaurant loyalty by segment, by gender, April 2020
    • Work from home negatively impacts breakfast, lunch and beverage loyalty
    • Loyalty will shift more to independents over chains in wake of COVID-19
      • Figure 6: Restaurant loyalty statement agreement, April 2020
    • The opportunities
    • Loyal restaurant customers are more likely than their counterparts to buy restaurant food during this pandemic
      • Figure 7: Restaurant takeout behavior, by restaurant loyalty status, April 2020
      • Figure 8: Restaurant delivery behavior, by restaurant loyalty status, April 2020
    • Restaurant subscription programs can drive repeat purchases when brands need them most
      • Figure 9: Restaurant loyalty statement agreement, by generation, April 2020
    • Digital community is key to engaging loyal restaurant customers
      • Figure 10: Restaurant marketing statement agreement, by restaurant loyalty status, April 2020
  3. The Impact of COVID-19 on Foodservice Loyalty

      • Figure 11: Short, medium and long term impact of COVID-19 on Foodservice Loyalty, June 2020
    • Opportunities and threats
    • Most don’t feel more loyal to chains, highlighting a need to connect with diners on a local level
      • Figure 12: Restaurant loyalty statement agreement, April 2020
    • Daytime restaurant business will be impacted in a big way
    • Mobile-based self-checkout and loyalty programs keep c-stores competitive with restaurants
    • Reward loyalty with novel perks
    • Subscription convenience + value = loyalty builder
    • Impact on foodservice loyalty
    • 2020 foodservice sales nosedive because of COVID-19
      • Figure 13: Total US revenues and forecasted sales ranges of restaurants and eating places*, at current prices, 2014-24
    • Consumers deprioritize restaurant visits during COVID-19 outbreak and recession
      • Figure 14: Future activities, April-June 2020
    • How the crisis will affect loyal restaurant consumers
    • Loyal consumers are crucial to restaurants’ survival during the pandemic
      • Figure 15: Restaurant takeout behavior, by restaurant loyalty status, April 2020
      • Figure 16: Restaurant delivery behavior, by restaurant loyalty status, April 2020
    • Men, dads, young, Black and Hispanic consumers are most frequent loyal customers
      • Figure 17: Loyal restaurant visitation frequency, by demographics, April 2020
      • Figure 18: Annual unemployment rate, by race and Hispanic origin, 2005-19
    • How a COVID-19 recession will affect restaurant loyalty
    • Dining out sales and restaurant loyalty will diminish during the US recession
      • Figure 19: unemployment rates, December 2007-May 2020
      • Figure 20: Consumer spending on food away from home, monthly, 2006-10
      • Figure 21: Consumer spending on food away from home, annual, 2000-19 and Q1 2020
    • COVID-19: US context
  4. The Market – What You Need to Know

    • Restaurant sales plunge as a result of COVID-19
    • Recessionary spending will further hurt dining out
    • Restaurant loyalty will help save some sales
  5. Market Landscape

    • COVID-19 causes massive gouge in restaurant sales
      • Figure 22: Total US revenues and forecasted sales ranges of restaurants and eating places*, at current prices, 2014-24
      • Figure 23: Total US revenues and forecast sales ranges of restaurants and eating places*, by segment, at current prices, 2014-24
    • FSR market share is threatened
      • Figure 24: Percentage share of Top 200 restaurant chain sales, by segment, 2018*
      • Figure 25: Top 200 restaurant chain sales and percentage sales growth, by segment, 2016-18*
    • Loyalty will shift more to independents as US restaurant market shrinks
      • Figure 26: Restaurant loyalty statement agreement, April 2020
  6. Market Perspective

    • C-store loyalty programs grow, offer seamless checkout options
    • Competing restaurant loyalty programs emerge
  7. Market Factors

    • State reopening plans limit dine-in capabilities
    • Dining out will take a big hit as US enters a recession
      • Figure 27: unemployment rates, 2008-May 2020
      • Figure 28: Spending cuts after job loss – NET any rank, November 2019
      • Figure 29: Spending cuts after job loss – NET any rank, by gender, November 2019
    • Restaurant purchases are less of a priority during COVID-19 outbreak
      • Figure 30: Future activities, April-June 2020
    • Loyal consumers are heavier restaurant purchasers in this pandemic
      • Figure 31: Restaurant takeout behavior, by restaurant loyalty status, April 2020
      • Figure 32: Restaurant delivery behavior, by restaurant loyalty status, April 2020
    • Work from home will hurt breakfast, coffee/tea and lunch business
    • Black consumers are less likely to use smartphones, creating a barrier for loyalty program adoption
      • Figure 33: Smartphone users, by race and Hispanic origin, Fall 2019
  8. Key Trends – What You Need to Know

    • Winning loyalty programs cater to individuality with personalization
    • Loyalty programs that don’t accept cash payment will suffer
    • Subscription programs will continue to emerge
  9. Key Players – Restaurant Loyalty Programs

    • Trend Drivers – Which loyalty programs are the best and why?
      • Figure 34: Mintel’s Global Trend Drivers and Pillars
    • Starbucks’ loyalty program caters to consumers’ needs for technology, identity and value
    • Chipotle’s loyalty program wins with technology, experiences, identity and value
    • Dunkin’s loyalty program offers value, identity and rights
  10. What’s Working?

    • New loyalty programs continue to crop up
    • Personalized loyalty takes precedent
  11. What’s Struggling?

    • Cashless-only loyalty programs
    • Loyalty will need to help reinvigorate breakfast and lunch dayparts
      • Figure 35: Restaurant purchasing in past three months, by restaurant loyalty status, April 2020
  12. What’s Next?

    • Subscription programs will take off
    • Restaurants will reward loyal customers when dine-in reopens
    • Meal kits will appeal to loyal restaurant consumers
  13. The Consumer – What You Need to Know

    • Men, dads, young, Black and Hispanic consumers are important restaurant customers
    • Service is central to loyalty
    • Mobile apps are the future of loyalty programs, but they must always make way for cash
  14. Restaurant Loyalty Status and Visitation Frequency

    • Most consumers feel loyalty to a restaurant
      • Figure 36: Restaurant loyalty status, April 2020
    • Loyal consumers tend to be young, city- and town-dwellers and dads
      • Figure 37: Restaurant loyalty status, by demographics, April 2020
    • Loyal consumers also tend to be lower- and middle-income and digitally engaged with restaurants
      • Figure 38: Restaurant loyalty status, by CHAID – Tree output analysis, April 2020
    • Nearly half of loyal restaurant consumers visit restaurants at least once a week
      • Figure 39: Loyal restaurant visitation frequency, April 2020
    • Men, dads, young, Black and Hispanic consumers are most frequent loyal customers
      • Figure 40: Loyal restaurant visitation frequency, by demographics, April 2020
      • Figure 41: Loyal restaurant visitation frequency, by CHAID – Tree output analysis, April 2020
  15. Restaurant Loyalty Motivators

    • Friendly service is key to restaurant loyalty – Above convenience, speed and price
      • Figure 42: Restaurant loyalty motivators, April 2020
    • However, speed is growing in importance among loyal consumers
      • Figure 43: Restaurant loyalty motivators, by generation, April 2020
    • Speed and price are more important to lower-income loyal consumers
      • Figure 44: Restaurant loyalty motivators, by income, April 2020
    • White consumers are most likely to be restaurant loyal because of high-quality menu items
      • Figure 45: Restaurant loyalty motivators, by race and ethnic origin, April 2020
  16. Restaurant Loyalty by Segment

    • Consumers are most loyal to fast food restaurants
      • Figure 46: Restaurant loyalty by segment, April 2020
    • Women drive coffee and tea restaurant loyalty
      • Figure 47: Restaurant loyalty by segment, by gender, April 2020
    • Younger consumers are driving loyalty toward fast food
      • Figure 48: Restaurant loyalty by segment, by generation, April 2020
    • Consumers of color also drive fast food loyalty
      • Figure 49: Restaurant loyalty by segment, by race and Hispanic origin, April 2020
    • Parents are especially loyal to affordable, family-friendly fast food
      • Figure 50: Restaurant loyalty by segment, by parental status, April 2020
  17. Reasons for Ceased Restaurant Loyalty

    • Restaurant loyalty doesn’t last forever for two fifths of consumers
      • Figure 51: Ceased restaurant loyalty status, April 2020
    • Consumers who are currently restaurant loyal are also most likely to state changes in restaurant loyalty over time
      • Figure 52: Ceased restaurant loyalty status, by demographics, April 2020
    • Just as service is a top loyalty motivator, decreased service quality is the top barrier
      • Figure 53: Reasons for ceased restaurant loyalty, April 2020
    • Women in particular care about service quality
      • Figure 54: Reasons for ceased restaurant loyalty, by gender, April 2020
    • Younger consumers are most likely to be lured away by competing restaurants
      • Figure 55: Reasons for ceased restaurant loyalty, by generation, April 2020
    • Hispanic consumers are also most likely to switch to a competing restaurant
      • Figure 56: Reasons for ceased restaurant loyalty, by race and ethnic origin, April 2020
  18. Loyalty Program Motivators

    • Monetary savings are top motivators for joining loyalty programs
      • Figure 57: Loyalty program motivators, April 2020
    • More price-sensitive women in particular value monetary benefits
      • Figure 58: Loyalty program motivators, by gender, April 2020
    • Millennials prioritize personalized loyalty program rewards
      • Figure 59: Loyalty program motivators, by generation, April 2020
    • Black and Hispanic consumers are most interested in subscription-style loyalty program benefits
      • Figure 60: Loyalty program motivators, by race and ethnic origin, April 2020
  19. Restaurant Loyalty Statement Agreement

    • There’s extremely high interest in restaurant loyalty programs
      • Figure 61: Restaurant loyalty statement agreement, April 2020
    • Most men are more loyal to chains than independents
      • Figure 62: Restaurant loyalty statement agreement, by gender, April 2020
    • Restaurant loyalty programs need to accept cash
      • Figure 63: Restaurant loyalty statement agreement, by generation, April 2020
    • Black and Hispanic consumers drive loyalty to restaurant chains
      • Figure 64: Restaurant loyalty statement agreement, by race and ethnic origin, April 2020
    • Parents are most open to loyalty programs from a wider variety of providers
      • Figure 65: Restaurant loyalty statement agreement, by parental status, April 2020
    • Loyal restaurant consumers are highly engaged on social media
      • Figure 66: Restaurant marketing statement agreement, by restaurant loyalty status, April 2020
  20. Appendix – Data Sources and Abbreviations

    • Data sources
    • Consumer survey data
    • Consumer qualitative research
    • Abbreviations and terms
    • Abbreviations
    • Terms
  21. Appendix – The Market

      • Figure 67: Total US revenues and forecasted sales ranges of restaurants and eating places*, by segment, at inflation-adjusted prices, 2014-24
  22. Appendix – The Consumer

    • CHAID analysis methodology
      • Figure 68: Restaurant purchasing in past three months, by restaurant loyalty status, April 2020
      • Figure 69: Restaurant loyalty statement agreement, by restaurant loyalty status, April 2020

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

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