2010's Changing Face of America's Fine Diners

8/9/2019 2010's Changing Face of America's Fine Diners

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Copyright 2010, Restaurant RX Consulting LLC 1

O R L A N D O S A N F R A N C I S C O T O R O N T O

2010s Changing Face of Americas Fine Diners

Research Highlights

June 2010


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Background

Orlando-based RestaurantRx Consulting has recently conducted a nationalonline survey with over 1,600 customers of fine dining and upscale

establishments in the Top 25 US markets. Data was collected online during May2010 using a permission-based sample from e-Rewards of recent dinerssatisfying the following criteria:

Those who have eaten at a fine dining establishment within the past threemonths

35 years of age or older Household income of at least $100,000.

Analysis is provided nationally, and if requested, can be provided across fourregions within the US: the Northeast, Southeast, Midwest and Far West. The

large sample allows for rigorous examination of the data, with a margin or error ofonly 2.4% for the national sample and +/- 5% for each region.

The study explores customer attitudes towards fine dining in general, includingtheir likes/dislikes and visitation habits, frequency of out-of-home and in-homegourmet dining, as well as insights into fine diners perception ofspecific upscaleestablishment brands. Additionally, our study includes psychographic andbehavioral insights on fine diners interests and activities, along with informationsources used, including social media.

Hundreds of customers from leading upscale chains such as Capital Grille,

Flemings, Houstons, McCormick & Schmicks, Mortons, Ruths ChrisSteak House, The Palm and many others are represented in the study.Customized proprietary reports on many of these brands can be ordered directlyfrom RestaurantRx Consulting. Contact information may be found at the back ofthis summary of findings.


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Key Findings

1. One-of-a-kind fine dining and upscale establishments have a

strong following of discerning customers as illustrated by thesekey factors:

Preference

One-of-a-kind fine dining establishments are preferred over upscalechainsby a wide margin: 81% versus 19%.


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Visitation

Over three-quarters (76%) of fine diners surveyed have eaten at a local,one-of-a-kind fine dining and upscale establishment during the past six

months; whereas only one-third (36%) have eaten at a national or localchain. The most popular fine dining chain was visited by 25% of thesample. This can be explained partly by customer preference but also bythe absence of some chains in all 25 reported markets.

Favorite

Nearly half of customers (44%) consider one-of-a-kind fine dining andupscale establishments to be their favorite. In contrast, the top favoritechain comes in at only 11%.


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2. Food Quality is deemed to be the most important attribute offine dining and upscale establishments in general. Apparently,the quality of the food at upscale establishment meets the

approval of most fine dining customers:

Food Quality is of High Importance. 9.6 out of 10 judge food quality tobe the most important attribute or characteristics of a fine diningestablishment

69% of fine diners judge food qualityas overwhelmingly the feature likedbest at fine dining and upscale establishments

Consistency, at 11% is the only other attribute that rates in double figures,followed by Value for the Money at 9%)

59% of fine diners judge food quality to be the primary reason he/sheselects a restaurant to be a favorite. No other factor comes close.

Clearly, superior and extraordinary food quality is the "cost of entry" into thefine dining and upscale category.

3. Superior service and how one is treated are integral to apositive fine dining experience:

Fine dining customers have high expectations of service:

Importance of Service:

Service scored 9.0 out of 10, making it the most second important attributeor characteristic of a fine dining establishment.

Servicewas deemed the most important by 6% of those surveyed.


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Relating to service, treatment - how customers are being treated is ofsignificant importance at a fine dining establishment:

Importance of "How I am Treated

How I am treated scored 8.9 out of 10, making it the third most importantattribute or characteristics of a fine dining establishment.

How I am treated was considered to be the most important attribute by8% by those surveyed.

The research appears to identify service & treatment as co-factors that candifferentiate one fine dining establishment from another. Restaurant Rx regards

these two features as important areas of focus for upscale establishmentsseeking to reinforce their customers' experience and build customer loyalty.

Others characteristics of fine dining and upscale establishments are alsodeemed important to fine diners. Evaluated on a 10 point scale, fourimportant ones are:

Out of 10

1. Value for the money 8.12. Atmosphere 8.13. Menu variety 7.84. Restaurants reputation 7.7


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4. Fine dining and upscale establishments are not without faults.

As far as negatives, inconsistency seems to be the biggest complaint

customers have about fine dining and upscale establishments. Notsurprisingly, inconsistency most often relates to inconsistent food quality.

20% describe this as their foremost complaint, 50% mention inconsistent food quality as one of top three complaints.

And inconsistent service

11% describe inconsistent service as their foremost complaint. 46% mention inconsistent food quality as one of top three complaints

Other complaints revolve around the notion of the cost/value ratio, nosurprise in todays tight economy:

High menu pricesand poor value for the money tied for 2nd as being thebiggest complaints about fine dining and upscale establishments

52% mention poor value for the money as one of their top threecomplaints; 42% mention high menu prices as one of their top three

complaints.

Based on the importance that fine diners place on both food quality andservice/treatment, the expectations pertaining to these two areas is exceedinglyhigh. And that most establishments, be they one-of-a-kind restaurants or part ofa recognizable chains, are performing well means there is little margin for error.


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5. What do we know about fine dining customers?

Customers of fine dining and upscale establishments fall into five categories.Nearly half (46%) prefer simply prepared foods in a casual atmosphere

Source: May 2010 Survey of U.S. Fine Diners by Restaurant Rx

:

Prefer simply prepared foods in a relaxed atmosphere - 46%

Are a traditional steak and potatoes type person 12% Prefer exotic foods and international cuisines 29% Prefer richly prepared dishes served in a formal setting - 11% Prefer dishes prepared organically under Fair Trade conditions 3%


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Many fine diners are self-described gourmets. Not only do they frequently visittheir restaurants of choice, they also purchase prepared meals from specialtyretailers such as Whole Foods, and often prepare gourmet meals at home:

Eat at a fine dining and upscale establishment 2.6 times a month.

Purchase prepared meals from a specialty retailer like Whole Foods 1.4times per month.

Prepare a gourmet meal at home 4.1 times per month.


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6. The economy has affected the frequency of fine dining, butloyalty to one's favorite is still strong.

The economy continues to affect fine diners. Visitation of fine dining and upscaleestablishments is expected to remain unchanged from last year (2009). Thispattern appears to hold true across all regions.


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Despite todays economic downturn, loyalty to ones favorite fine dining andupscale establishment appears to be high, as nearly 7 in 8 (83%) expect to dinethere again within the next three months, especially for one-of-a-kind

establishments (93%).

7. There is considerable opportunity in adding to the fine diningand upscale establishment "experience.

The research explored various ideas and suggestions for fine diningenhancements for future implementation. Todays fine dining customers claimthey would be most interested in the following:

Out of 10 Greater menu variety 7.4 More intimate atmosphere 6.9

More international flavors 6.6 More casual atmosphere 6.5 VIP treatment 6.5


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8. Notable Fine Diner Behaviors & Insights

Activities

Customers of fine dining and upscale establishments claim they haveparticipated in a wide range of activities over March, April and May 2010. Theseinclude viewing TV programs on the Food Network (72%) and spending morethan $200 at a fine dining establishment. Many of those with higher TotalHousehold Income (HHI) can be considered to be wine enthusiasts.

Information Sources

How to reach fine and upscale diners is increasingly challenging, given the manydiverse options for information sources, and the advent of social media activities.As would be expected, word-of-mouth(95%), in the form of recommendations,is considered to be the most important source of information on fine dining andupscale establishments, followed by recommendations from hotel conciergesat 74%.

Social Media

Some of todays fine diners are just beginning to tune into social media activities.Media contact sites such as Facebookand Twitterhave the greatest reach, with49% of fine diners using these social networks. (It is relevant that the surveysample including respondents of age 35 years old +.)


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9. Demographic Highlights of the Study:

The 1600 U.S. fine diners sampled in our survey can be described as follows:

They are evenly distributed by gender: 53% Women, 47% men

While the age of Fine Diners in our survey ranged from 35 years old to 65 plus,the average age set consists of people in their late 40s.

Based on Household Income (HHI), our fine dining sample is wealthy:

43% have HHIs greater than $150K per year. The Mean HHI is $160K per year.

Fine diners surveyed represent the four major mainland U.S regions in roughlyequal numbers:

- Northeast- South- Midwest

- Far WestThe majority of finer diners in our survey are Caucasian (White)- White 87%- Asian 4%- Hispanic 2%- Black 2%- Other/mixed 5%


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Fine & Upscale Dining - Experiential

AVAILABLE ADDITIONAL ANALYSIS AND IMPLICATIONS: High-frequency diners represent significantly disproportionate volumes of visits and

their profile and composition reveal surprising insights. Data showing the relationship between many popular lifestyle activities and

frequency of dining out provide useful perspectives. How to reach fine and upscale diners given the options for information sources, and

the advent of social media activities is challenging. The data provide clues for

effective campaigns to drive visits.

The universe is shifting: the hassle free options for in-home fine dining are expandingwith particular impact with those high-frequency diners who represent the lions share

of industry visits. Important learning is available

There is an important distinction between affordability and value; the same goes forthe difference between service and treatment

For more information on 2010s Changing Face of Americas Fine Diners, pleasecontact:Steve Mamarchev

Managing Partner

RestaurantRx Consulting

1800 Pembrook Drive Suite 300

Orlando, FL 32810

T: 407.667.3500

[email protected]
mailto:[email protected]:[email protected]:[email protected]

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2010's Changing Face of America's Fine Diners