Market Research: The Restaurant Industry Looks at 2012

The NPD Group, a market research firm, recently released its outlook for the restaurant industry in the coming years, focusing primarily on children’s nutrition and demographics. The NPD group states that continued pressure (both from a legislative and an advocacy standpoint) will be applied to restaurants, especially QSRs, to make children’s meals more nutritional. To this point, the influence has been working as many foodservice outlets are focusing more of the content of the ‘kid’s meals’ on items like wraps, fruit, and yogurt over burgers, fries and sweets. Consumer response to this shift has been positive as well. Nearly all of the comments from the 31 member restaurants that constitute the Kids LiveWell Initiative have noted that the healthier foods are faring better than many other menu items.

                The NPD Group also projects that demographics will play a key role in restaurant success in 2012. The rapid growth of Hispanic and Asian populations in the United States will continue to drive the demand for more ethnically diverse foods. The marketing research firm also projects “Millennials will overtake Baby Boomers as the most sought-after target for restaurateurs” ads their spending influence grows.

                Not ranking as high on the list, The NPD Group also listed additional factors that could heavily influence the restaurant industry in 2012, and beyond:

1.       Retail competition will increase

a.       Convenience stores are making in-roads on in-car dining

b.      Supermarkets are expanding their prepared foods offerings as well as the option dine in or take home

2.       Work-related lunch visits will rebound with decreasing unemployment

3.       Beef, chicken, and coffee prices are expected to increase so look for promotions to steer away from these items

4.       Social media’s benefits will continue to be exploited

5.       QSRs will focus more on beverage offerings to increase traffic and adapt to the demographic shifts discussed previously in this post.

One thing is for sure, 2012 looks to be an exciting year to be in the restaurant industry. It will be interesting to see who makes the best use of marketing research to find growth opportunities.

Resources:
Kelso, Alicia. "Restaurant Industry's 2012 trends shaped by demographics, nutrition" Pizza Marketplace.com. January 16, 2012 (accessed January 20, 2012). http://www.pizzamarketplace.com/article_print/189200/Restaurant-industry-s-2012-trends-shaped-by-demographics-nutrition