The Latest Trends: What’s New at Night Summer nights are here . . . and American consumers are looking for opportunities to be out and about. Whether they’re in their home towns or on vacation, their evenings out will likely include a restaurant dining occasion. That might mean anything from a snack after the movie to a leisurely special-occasion dinner. Why are more Americans visiting restaurants in the evening? What are they seeking there? And most important, how can your independent restaurant meet their needs and make a profit? Read on to learn more. v07.12 1 Turn On the Night Optimizing Dinner Business—continued The nation’s economy is still on a roller coaster, but consumers are loosening their purse strings, at least for day-to-day purchases that offer immediate gratification. A family that may not be ready to purchase a car may be eager to splurge on a restaurant dinner. Since good weather is always associated with stronger foodservice patronage, the height of summer may be just the time to rethink your operation’s appeal to the dinner crowd—and perhaps add or enhance late-night service as well. family dinners to go. Pappas Bar-B-Q promoted a $13.95 Father’s Day Feast for dine-in or takeout, consisting of beef brisket, link sausage and pork ribs served with two sides. Most Americans purchase dinner away from home at least once a week: 31% do so weekly and 37% do so several times a week. Late-night dining is also a surprisingly strong segment: 25% of consumers purchase food from restaurants late at night (for dine-in or takeout) at least weekly, and another 15% will make a late-night foodservice purchase two or three times a month. As one might imagine, late-night patronage is particularly high among younger adults. Takeout Dinners Takeout occasions are ideal for consumers (especially those aged 35 and older) who want a night off from cooking dinner, but still look forward to a relaxing meal at home. One in five consumers are purchasing dinner away from home more often now than last year, primarily because they’re lured to purchase food for pickup or delivery. Diners choose full-service and limited-service restaurants for both dine-in and takeout dinner occasions. But drawing dinner traffic in today’s hypercompetitive environment means exploring new ways to underscore value beyond low prices. Family-focused menu promotions are taking center stage for both FSR and LSR takeout. Tahoe Joe’s Famous Steakhouse introduced family-style takeout dinners that include a choice of salad, sourdough rolls and two scratch-made sides in sizes designed to serve five to six, 10–12 or 25–30 people; entrée choices include Joe’s On average, Roast, Sierra Mountain Ribs or a combination of consumers are about Roast or Ribs with Wood twice as likely to Grilled Chicken. Pizza Hut’s Big Dinner Box dine in a restaurant packs snackable items (eight chicken wings and for dinner than they five breadsticks) in a box are to order takeout. with two medium pizzas, all for $20. Routine Dinners Special-Occasion Dinners Optimizing Dinner Business Operators can boost dinner sales by strengthening their overall value with creative pricing strategies beyond absolute low price, such as specials or combo meals. Lower-priced items that can easily be bundled for a quick and affordable meal for one person or a whole family are the focus for LSR dinner menus. Pollo Tropical celebrated Valentine’s Day with a Two Can Dine for $9.99 meal deal: choice of two entrées (create-your-own TropiChop or ¼ Chicken Platter with rice and beans), two regular-size fountain drinks, a shared regular order of yuca sticks or sweet plantains, and a shared flan dessert. Full-service restaurants are also promoting dinner value with bundled meals and affordably priced v07.12 Nine out of 10 consumers patronize restaurants at dinnertime to celebrate special occasions. Birthdays are by far the most common occasion, followed by anniversaries and date nights. For women, late-night restaurant occasions are top of mind for a date or celebration, while men tend to think of these occasions in terms of watching televised sports with their buddies. FSRs need to emphasize “premium” positioning as part of the value equation for entrées. But also important to check averages are sales of adult beverages, appetizers and desserts—the very items that define a “special occasion” for many diners. While consumers may rank absolute price fairly low as a deciding factor for a special-occasion meal, 2 Optimizing Dinner Business—continued it’s still a factor, particularly when there are several restaurants in the area offering similar meals and ambiance. Full-service restaurant operators can appeal to price-conscious diners without damaging their premium positioning by offering a tiered or “high-low” price strategy, flexible portions for core menu items, or both. For instance, upscale steakhouse Fleming’s Prime Steakhouse & Wine Bar debuted a Small Plates menu featuring seven dishes ranging from $15.50 to $22.95. This summer, it added six shareable dishes (including Salt and Pepper Shrimp, Filet Mignon Flatbread and Prime Burger), pairable with complementary beers, wines and cocktails. The special menu puts Fleming’s into the consideration set for a much wider range of consumers, at least for special occasions. Waking Up to Late Night Consumers are moving away from the paradigm of consuming three meals a day at predictable times; instead, they may graze throughout the day or even eat a full meal late at night. Late-night dining and grazing are habits of younger consumers in particular. More than half (55%) of consumers under 35 report visiting restaurants late at night at least once a month, and a third of these younger adults say they would patronize restaurants for late-night meals and snacks even more often if more restaurants in their area kept late hours. Smaller portions, mix-and-match options, and shareable samplers meet the needs of Millennials who congregate during late-night hours. Signature cocktails also help position a restaurant as a preferred nighttime destination. Among the operations giving special attention to late-night business: v07.12 Elephant Bar Restaurant inaugurated a second happy hour from 9 p.m. until close every night, with drink specials like halfpriced Mai Tais on Mondays, half-priced skinny cocktails on Tuesdays and $4 glasses of wine on Wednesdays, paired with new small plates including firecracker shrimp, spicy wood-grilled Italian sausage, woodgrilled Moroccan chicken skewers and spinach and artichoke stuffed mushrooms. Waking Up to Late Night—continued Denny’s AllNighter format offers a “Rockstar” menu that features late-night specials, including late-night breakfast offerings. Limited-service restaurants also have ample opportunities to cater to consumers with the late-night munchies. SONIC Drive-Ins, which already has an afternoon “milkshake happy hour” during which shakes are offered at half price, extended it to the 2–4 a.m. period at its 24-hour restaurants. The new focus is part of the chain’s strategy to build on its strengths as a five-daypart restaurant offering breakfast, lunch, afternoon snacks, dinner and late-night options. Sysco Can Help Your Sysco Marketing Associate can help you leverage both dinner and late-night dining occasions in a way that’s appropriate for your concept and clientele. Backed up by Sysco’s formidable team of culinary and operational professionals, your Marketing Associate can advise you on ingredients, menu trends, service and operational enhancements, and the most effective ways to market meals and snacks for both early and late evening. In addition, Sysco offers you access to two other invaluable resources: Periodic Business Reviews in which a team of Sysco experts examines every phase of your operations and recommends improvements to build sales, traffic and the bottom line. Access to Sysco iCare business partners— companies that offer specialized value-added resources to help independent operators compete against chains and multiconcept operators as well as other independents in their local area. For more information, contact your Sysco Marketing Associate. 3
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