Social Media and Technology in the U.S. Foodservice Industry: Trends and Opportunities for an Emerging Market

March 2011 | 126 pages | ID: SA04BFFB9D1EN
Packaged Facts

Abstracts

Price (Global Site License): US$ 4,950.00

The convergence of social media, mobile devices and consumer lifestyles is ushering in a new era of restaurant-consumer interaction, opening new doors for restaurant operators to build customer relationships and sales opportunities, according to Packaged Facts’ Social Media and Technology in the U.S. Foodservice Industry: Trends and Opportunities for an Emerging Market.

Tethered by the Internet, restaurant operators are increasingly interacting with restaurant consumers in real-time—at work, at home or in mid stride. This provides significant opportunity to shape consumer food choices not only as they are being made, but also in proximity to a restaurant seeking that consumer’s business.

This Packaged Facts report provides the insight and analysis foodservice market participants need to understand and leverage social media and technology platforms to enhance their bottom lines. The analysis includes the following:

• Social Networking Platforms
• Consumer Review Platforms
• Food Blogs And Food Photography
• Technologic Dining In Action
• Smartphones And Applications
• Online Ordering Platforms
• Anatomy Of The Mobile Restaurant Ordering User
• Anatomy Of The Urban Diner
• Using Social Media To Effect: Restaurant Case Studies

Contents

CHAPTER 1: EXECUTIVE SUMMARY

Scope and Methodology

Scope

Methodology

Consumer survey methodology

Definitions

Restaurant Segmentation Overview

Foundation & Growth Factors

Insight capsule

Fast facts

Social Networking Services & Foodservice

Insight capsule

Fast facts

Technological Dining & Location-Based Media

Insight capsule

Online Ordering & Review Platforms and Food Blogs & Photography

Content synopsis

Anatomy of the Mobile Restaurant User & the Urban Diner

Key findings

Using Social Media to Effect: Case Studies

Chipotle Mexican Grill Insight Capsule

Starbucks Insight Capsule

CHAPTER 2: FOUNDATION & GROWTH FACTORS

Introduction

Restaurant landscape to shift quickly

Drivers of change

Broadband adoption and use

Why it matters

Penetration trend tapers

Quick adoption

Adoption slows

Racial/ethnic gap closing

Income and education divide haves from have-nots

Graph 2-1: Broadband and Dial-up Adoption, 2000-2010

A multi-access online world

Mobile consumers; mobile technology

Why it matters

A plethora of consumer-facing potential

Jumping the racial/ethnic divide

Cell phone/smart phone penetration

Cell phone services

Smart phone share

Notable demographics

Race/ethnicity differences

Social Media

Why it matters

Apps galore

Why it matters

Apple leads the way

Graph 2-2: Apps per Mobile Device, 2010

Social networking and dining apps among most popular

Location-based services gaining a foothold

Why it matters

Nascent usage

Traction among men, Hispanics, and Gen Y

Table 2-1: Location-Based Services: Demographic Analysis

Social networking connection

Leading to swift evolution in context-aware advertising

Why it matters

Benefit: local, highly targeted, highly relevant traffic incentive

Drawbacks

Mobile payments

Why it matters

A new era of speed and convenience

Usage is nascent, but consumer interest is there

NFC payments set for launch and quick uptake

Apple and Google in the wings

Starbucks takes the barcode route

Benefits

Stored value card foundation

TabbedOut is the wave of the future

Bottom line

CHAPTER 3: SOCIAL NETWORKING SERVICES & FOODSERVICE

Overview

Social Media: Enormous reach and usage

Time tells the story

Social Networking Services

Overview

Business use of social networking services

A plethora of platforms; a range of brand extensions

Benefits to engaging social media users

Challenges

Consumer engagement

Social media quickly passes majority status

Interacting with companies common

Using social media to learn about restaurants on the rise

Facebook

Overview

Table 3-1: Facebook, Selected Metrics

Navigating friendship and exposure

Foodservice on Facebook, from McDonalds to Charlie Trotter’s

McDonald’s

Olive Garden

Charlie Trotter’s

Bottom line

Facebook Places& Facebook Deals

Incentives to leverage restaurant brand usage

Finding the deal: how it works

I told two friends, and they told two friends, and so on, and so on, and so on

Learning opportunity

Counterweight: privacy issues

A usage deterrent

Facebook degree of engagement, by demographic

For many, part of a lifestyle or routine

Pavlov’s dog incarnate

The bottom line: connection first, leverage second

Key demographics

Bottom line for restaurants

Table 3-2: Engaged & Hyper-Engaged Facebook Users, Selected Demographics

Facebook mobility

Opportunity knocks

Table 3-3: Engaged & Hyper-Engaged Facebook Users, Mobile Lifestyle Segmentation

Connecting to the opportunity

Table 3-4: Engaged &Hyper-Engaged Facebook Users, Family Restaurant & Steakhouse Chains

Facebook likes Starbucks

Table 3-5: Engaged &Hyper-Engaged Facebook Users, Fast Food & Drive-Ins

Correlation or cause?

Table 3-6: Selected Restaurant Chains: Facebook Friends Per Restaurant Foodservice Sales and Units

Twitter

Overview

Table 3-7: Twitter, Selected Metrics

Who do you want to follow?

Promoting businesses

Starbucks leads restaurant chains into Twitter territory

Minimal advertising space crimps its potential

Photo and video enhancements may provide counterweight

Foodservice on Twitter

Short content bursts

The Counter hamburger chain: prove you follow us!

The Mermaid Inn goes viral

Tweeting vacancies

What’s the password?

Tumblr and Flickr promote visual, sensory appeal

Food Trucks on Twitter

Food trucks and Twitter work hand-in-hand

Application: Meatyballs Mobile

Twitter degree of engagement, by demographic

Short, more intermittent bursts

Key demographics

Bottom line for restaurants: a multi-cultural, urban touchpoint

Table 3-8: Engaged & Hyper-Engaged Twitter Users, Selected Demographics

Twitter mobility

Significant location-based marketing opportunity

Table 3-9: Engaged & Hyper-Engaged Twitter Users, Mobile Lifestyle Segmentation

Connecting to the opportunity

Table 3-10: Engaged &Hyper-Engaged Twitter Users, Fast Food & Drive-Ins

Twitter likes Starbucks, too!

Table 3-11: Selected Restaurant Chains: Twitter Followers Per Restaurant Sales and Units

Calculating ROI

Firehouse Subs

Tweet, tweet

Facebook for feedback and spreading the message

Einstein Bros. Bagels

Instant print couponing

CHAPTER 4: TECHNOLOGICAL DINING & LOCATION-BASED MEDIA

Technologic Dining

Handheld devices

Chili’s Pay-at-the-Table

Why not a touch screen table?

Google reaches into location-based bag

Table 4-1: Google, Selected Metrics

Google Maps

Google Places

Technology in University Dining

CalDining and Ohio University on Twitter

Duke Merchants on Points Delivery

Next Chicago and prepayment

The iPad

Table 4-2: iPad, Selected Metrics

Restaurant applications

Smartphones, Applications, and Location-Based Services

Foursquare

Business opportunity

Challenges: cheating

Bravo Network partnership links television shows to real locations

Pepsi experiments with repeat customers

Zagat badge

Tasti D-Lite links Foursquare to loyalty program

Table 4-3: Foursquare, Selected Metrics

Layar

TabbedOut

Benefits to consumers

Benefits to restaurants

Drawbacks

Aloqa

Gowalla

Table 4-4: Gowalla, Selected Metrics

GyPSii

Tagwhat

Urbanspoon

CHAPTER 5: ONLINE ORDERING & REVIEW PLATFORMS AND FOOD BLOGS & PHOTOGRAPHY

Overview

Online ordering shifting quickly to multi-concept platforms

Delivery and takeout future appears rosy

Online Ordering Platforms

DiningIn

Grub Hub

Foodler

OpenTable, DinnerBroker and Restaurant.com

Restaurant.com

Dinner Broker

Groupon

Table 5-1: Groupon, Selected Metrics

GoMobo

Five Guys

Papa John’s goes mobile

NetWaiter pairs with Facebook

Online Consumer Review Platforms

Yelp

Table 5-2: Yelp, Selected Metrics

How it works

Benefits

Mobile application

The Ethics and Effects of Yelp

Steakgate

Lawsuit pending

Business response ammunition

Authenticity factor

Citysearch

Zagat

Going mobile

Facebook Places partnership

Bottom line

Menupages

Food Blogs and Food Photography

Serious Eats

The Restaurant Project by Stephen Hamilton

TasteSpotting

CHAPTER 6: ANATOMY OF THE MOBILE RESTAURANT USER & THE URBAN DINER

Anatomy of the Mobile Restaurant User

Note on reading charts

Restaurant lifestyle engagement informs technology use

Table 6-1: Mobility & Technology Attitudes & Behaviors

Table 6-2: Mobility & Technology Attitudes & Behaviors, Restaurant Lifestyle Group

Higher-frequency restaurant users' technology connection

Table 6-3: Mobility & Technology Attitudes & Behaviors, High-Frequency Restaurant Segment Users, Selected Restaurant Segments

A youth driven phenomenon

Graph 6-1: Mobility & Technology Index, by Age, 2010

Usage marked by racial/ethnic diversity

Graph 6-2: Mobility & Technology Index, by Race/Ethnicity, 2010

Income and technology correlation

Graph 6-3: Mobility & Technology Index, by HH Income, 2010

More of an urban phenomenon

Graph 6-4: Mobility & Technology Index, by Location, 2010

Significant technology cross-usage

Table 6-4: Mobile and Computer Restaurant Ordering, Cross-Usage, 2010

Mobility/technology analysis, by restaurant segment use

Fine Dining

Snack & Beverage, Fast Casual, Family, and Casual versus Fast Food

Graph 6-5: Mobile and Computer Restaurant Ordering Index, Restaurant Segment Usage, 2010

Mobility/technology analysis, by restaurant segment mean monthly use

Graph 6-6: Mobile and Computer Restaurant Ordering Index,

Restaurant Segment Mean Usage, 2010

Anatomy of the Urban Diner

Note on trending feature

The urban dweller: in brief

Table 6-5: Key Demographics, by DMA Size

Internet access location: DMA analysis

Table 6-6: Internet Usage Location, Use Most and Use Also, 2010

Internet access method: DMA analysis

Table 6-7: Internet Home Usage, Access Method & Device, by DMA Size

Cell phone service trends: DMA analysis

Table 6-8: Cell Phone Services Used in Past 30 Days, by DMA Size

Restaurant usage trends: DMA analysis

Table 6-9: Fast Food and Drive-In Restaurants, Top 25 DMA Concentration, 10 Highest

CHAPTER 7: USING SOCIAL MEDIA TO EFFECT: CHIPOTLE MEXICAN GRILL CASE STUDY

Chipotle Mexican Grill, Inc.

Competitive positioning: Customization; Food with Integrity

Marketing that backs Food with Integrity

Framing the message: demographic analysis

A quickly growing consumer universe

Strong income and gender skew

Table 7-1: Chipotle Mexican Grill Users: Selected Demographics

Chipotle Mexican Grill users: gourmets, meet practicality

Table 7-2: Chipotle Mexican Grill Users: Food, Health and Diet Attitudes

Chipotle Mexican Grill: connecting to the social media opportunity

Table 7-3: Chipotle Mexican Grill, Social Media Engagement Analysis

Chipotle Mexican Grill: quantifying social media

Table 7-4: Chipotle Mexican Grill

Facebook & Twitter Restaurant Sales and Unit Analysis

Facebook use correlates with Chipotle use

Table 7-5: Chipotle Mexican Grill, Facebook and Restaurant Visit Frequency Analysis

Chipotle Mexican Grill & Social Connectors

Find me on my cell phone, then reap the rewards

Table 7-6: Social Connectors Lifestyle Group,

Chipotle Mexican Grill Visit Frequency Analysis

Chipotle Mexican Grill website traffic analysis

Chipotle Mexican Grill: Social Media and Technology Innovations

Loyalty program to target “evangelical, super-passionate regular customers”

Facebook as marketing platform

Facebook Deals promotional incentive

Chipotle Mexican Grill by the numbers

Table 7-7: Chipotle Mexican Grill, Selected Metrics, 2007-10

2010 sales trends

Table 7-8: Chipotle Mexican Grill, Quarterly Sales Metrics, 2009-10

2011 guidance

CHAPTER 8: USING SOCIAL MEDIA TO EFFECT: STARBUCKS CASE STUDY

Starbucks Corporation

Revenue mix shows food trending upward

Table 8-1: Starbucks, Revenue Mix by Product Type, 2009

Recession response

Menu pricing strategies and customer incentives

Starbucks users, Starbucks snackers?

Table 8-2: Starbucks Users: Restaurant Usage by Daypart and Restaurant Type

Starbucks core users

Table 8-3: Starbucks Users: Selected Demographics

Starbucks guests: food adventurousness and fast food practicality

Table 8-4: Starbucks Users: Food, Health and Diet Attitudes

Starbucks: connecting to the social media opportunity

Table 8-5: Starbucks, Social Media Engagement Analysis

Starbucks: quantifying Facebook and Twitter audience

Table 8-6: Starbucks Facebook & Twitter Restaurant Sales and Unit Analysis

Facebook use correlates with Starbucks use

Table 8-7: Starbucks, Facebook and Restaurant Visit Frequency Analysis

Table 8-8: Starbucks, Twitter and Restaurant Visit Frequency Analysis

Starbucks & Social Connectors

Connecting to Social Connectors

Table 8-9: Social Connectors Lifestyle Group,

Starbucks Visit Frequency Analysis

Starbucks website analysis

Table 8-10: Starbucks, Downstream Site Visits

Starbucks: Social Media and Technology Innovations

A holistic approach firing on all cylinders

Driving toward a strong, unified emotional connection

Food and drink customization online

Brand managers mingling with the people: what a concept!

Leveraging loyalty: My Starbucks Rewards continues to gain traction

Connecting with Wi-Fi

iPhone apps

e-gifting & the Starbucks Card Facebook App

Mobile payments: Starbucks takes the barcode route

Stored value card foundation

Promoted tweets

A same-store sales turnaround worthy of celebration

Table 8-11: Starbucks, Selected Metrics, 2007-09

2010 brings good news

Table 8-12: Starbucks, Selected Quarterly Metrics, 2009 and 2010