I found this wonderful article in a trade publication and thought it worthy of sharing with everyone. From the article we can get some ideas on what consumers are looking for as well as some ideas for strategies to attack some of the changes consumers are making when they are dining out. One thing that jumps out at me from the article is diners' new found resistance to desserts, drinks and appetizers. To me, it seems like that is where we should start trying to break through consumer resistance with new and improved methods of marketing those segments to the diners that are already in our restaurants. People just need the reason to purchase those segments, and it is our job to find them a reason! Enough of what I think - here is the article.
Who is the New American Diner?
R&I's exclusive 2010 New American Diner Study shares insights into what today's diners really want from restaurant experiences and how the economy is affecting their dining-out habits.
By Kelly Smith Killian, Editor-in-Chief -- Restaurants & Institutions, January 1, 2010
Consumers generally have high regard for restaurants and what they deliver, but the economy continues to shape their views and behavior. About 70% see going out to eat as a treat or an indulgence, and as such, they value highly the quality of their overall experience (58.7% consider it as important as the food). And though most say restaurant visits are worth the expense, 65.4% acknowledge they’re looking for value. Additionally, regardless of whether they’re offered a deal, consumers are finding ways to shave dollars from check averages.
Diner Profile
According to R&I’s New American Diner Study, today’s diners …
… purchase a meal away from home 2.59 times a week on average.
… have higher expectations for the level of service in restaurants than in the past (53.5% say their standards are higher now).
… want choices—65% of diners want to be able to choose their own sauces, dressings or toppings; 68.7% like having options in portion size.
… put price before everything. Nearly 60% agree with the statement “In choosing a restaurant, price is usually my first consideration.” And diners across the board name lower prices as the top incentive at breakfast, lunch and dinner that would encourage them to eat at restaurants more often.
… say value is about more than price; 51% consider décor, music and furniture in determining whether a restaurant is a good value.
Word of Mouth Rules
Percent of diners who say they are drawn to restaurants by word of mouth. Recommendations from people they know well outweigh the word of strangers—only 17% say their choices are influenced by critics’ reviews, and just 12.9% are swayed by online consumer reviews. In addition, 45.3% say they choose restaurants because of coupons and specials; 26.3% are lured by television or radio commercials.
Dealing with the Downturn
More than seven in 10 consumers who say the economy has affected their dining-out habits say they’re choosing less-expensive restaurants; 87.2% say they’re dining out less. When they do go out, diners are adjusting their usual orders to cut costs. Nearly 69% say they’re cutting back on alcohol—up from 58% who last year said they were doing so. Among other changes diners are making:
79.9% don't order dessert
75.2% don't order an appetizer
68.7% don't order or limit alcoholic beverages
45.1% don't order sides
44.7% order smaller portions (i.e. lunch sizes)
44.6% don't order a beverage
44.4% share entrées
Opportunities for Operators
Give them something to talk about. Word of mouth matters: Operators should be leveraging the friend-to-friend power of social-networking sites such as Facebook by encouraging and incentivizing fan-site members to spread the word online about the brand.
Step up to the combo plate. It’s possible to nudge up check averages by offering full-meal deals: 58.3% of consumers say that if presented with the opportunity to order an appetizer, an entrée and a dessert for one set price, they would be likely to take it.
Consider coupons. More than half of consumers say they’re taking advantage of coupons or special deals as a result of the economy, and 45.3% choose restaurants based on the discounts they offer. Coupons and deals also are what people most want to get when they connect to a restaurant’s Facebook or Twitter account (63% said so).
Attack snacks. Snacks remain a golden opportunity for operators. More than half of consumers say they snack between meals at least once a day, and only 8.7% say they never snack. But 81% say they rarely or never stop at a restaurant to meet their noshing needs.
