Health & Wellness and Sustainability at Foodservice: Our ...Health & Wellness and Sustainability at Foodservice: Our Mid-term Future CIA-Harvard Menus of Change® National Leadership

Health & Wellness and Sustainability at Foodservice:

Our Mid-term Future

CIA-Harvard Menus of Change® National Leadership Summit

June 11, 2014 Cambridge, MA Closing General Session

Shelley Balanko, PhD, Senior Vice President, The Hartman Group

2 Health & Wellness and Sustainability at Foodservice © 2014 The Hartman Group, Inc

H e a l t h + W e l l n e s s h a s b e c o m e a c u l t u r a l i m p e r a t i v e


H e a l t h + W e l l n e s s i n v o l v e m e n t i s a b e t t e r p r e d i c t o r o f b e h a v i o r t h a n d e m o g r a p h i c s

The World of H+W is divided into segments with varying intensity of involvement

The gap between aspirations and behavior narrows as consumers become more engaged with H+W

Core is the most intensely involved in H+W

Inner Mid-level adopt Core attitudes and behaviors but with less consistency and reach

Outer Mid-level experiment with H+W but tends to prioritize other concerns

Periphery is the least involved in H+W

13%

21%

41%

25%

The Hartman Group’s World of Wellness Segmentation Captures 100% of

Consumers

Source: Culture of Wellness 2013


C o n s u m e r s t e n d t o e a t l e s s h e a l t h y w h e n e a t i n g o u t

C9. Compared to the food and beverages I provide for myself at home, the food and beverages I have when I EAT OUT are... Base: n=2551-Total.

40%

32%

28%

25%

24%

19%

There are not enough healthy menu options for me

There are not enough healthy restaurants

It is more affordable to eat healthy when eating…

It's harder to tell what is healthy or not

The portions are larger than what is healthy for me

Reasons Consumers Eat Less Healthy When Eating Out

C10. Why do you eat LESS healthy when eating out? (Select all that apply). Base: Consumers thinking eating out is less healthy n=1373-Total. C11. Why do you eat MORE healthy when eating out? (Select all that apply). Base: Consumers thinking eating out is more healthy n=286-Total Source: A Culture of Wellness 2013

43%

39%

29%

22%

21%

12%

It is easier to eat healthy when someone else cooks

Health and wellness is a higher priority for me wheneating out

It is more affordable to eat healthy when eating outthan at home

I don't know healthy cooking techniques

The convenience foods I use at home are not healthy

The people I eat out with lead me towards healthieroptions

Reasons Consumers Eat More Healthy When Eating Out

54% of

consumers eat less healthy when eating out than when eating at home

12% of

consumers eat more healthy when eating out than when they eat at home



E a t i n g o u t i s a f u n v e n u e t o d i s c o v e r n e w w a y s o f e a t i n g

Foodservice also provides a context to try out different approaches to eating

Eating “vegan” or drinking a green juice on occasion is equivalent to eating “Thai” or “Vietnamese”

As consumers outsource more of their cooking, they seek out healthier options for their everyday eatings

“I love coming here sometimes. I’m not vegan – I love steaks – but I also love their vegan ham.”

– Outer Mid-level consumer

Dough, a vegan eatery in Atlanta GA


6 Health & Wellness and Sustainability at Foodservice © 2014 The Hartman Group, Inc 6 © 2011 The Hartman Group, Inc

O c c a s i o n s a r e t h e m o s t i m p o r t a n t f a c t o r i n f l u e n c i n g H + W w h e n d i n i n g o u t

“When I’m…” Stressed, rushed, fatigued

Seeking a routine, but enjoyable, meal or snack

In the mood for a sit-down meal

“I need…” Something quick, tasty, that will satisfy craving

Something reasonably priced, reliable and tasty

Something delicious, a light splurge, an experience

“Health is…” Moderately high importance

Moderately high importance

Low to moderate importance

“I tend to choose…”

Fast Food Fast casual or fast food Casual dining

Consumers rarely consider nutritional information in casual restaurants because they understand that the occasion is defined by indulgence, and therefore, irrelevant

Relevance of healthy eating to the occasion is greater when in fast food restaurants

Source: Health + Wellness Deep Dive 2011


N u t r i t i o n a l i n f o r m a t i o n h e l p s c o n s u m e r s w h o a r e a l r e a d y m i n d f u l

Nutritional information suggests a level of care and trust

While this information may not sway consumers, they see value in knowing they may be overindulging and can make better decisions at their next meal

Nutritional information is a roadmap for ordering at an unfamiliar restaurant

“The idea flashes into your mind to get the smaller one.” - Inner Mid-level consumer

“It didn’t change what I ordered, but it made me realize how many calories were in it.” - Outer Mid-level consumer

The calorie range allows consumers who care more to omit high-calorie ingredients, while enabling those who care less to ignore the calorie count within the wide range



H e a l t h i e r c h o i c e s a r e h i g h e r q u a l i t y , c u s t o m i z a b l e f o o d s

Higher-quality foods cue “healthier” in a more desirable way than nutritional interpretations of food (low calories, heart healthy)

Consumers want eating out to be an enjoyable experience (“what I can have”) rather than an ascetic one (“what I ought to have”)

Cues of higher quality:

More vegetables Local Seasonal

Organic Good ingredients

Scratch-made in-house Culinary trends

Customization “I go to Chipotle, which is better than most. I get the salad and burrito bowl – I can cut out the carbs and not be so gluttonous.”

– Outer Mid-level consumer

Sally was considered “high maintenance” because of the specific way she ordered her food. Picky eating is now socially acceptable.



T h e a b i l i t y t o c u s t o m i z e o r d e r s a c c o r d i n g t o o n e ’ s H + W n e e d s i s m o s t i m p o r t a n t t o c o n s u m e r s w h e n e a t i n g o u t

49%

38%

37%

36%

34%

31%

31%

29%

28%

21%

63%

61%

55%

50%

54%

49%

42%

29%

35%

36%

49%

34%

37%

35%

35%

30%

30%

30%

27%

20%

42%

36%

27%

29%

18%

25%

25%

24%

26%

13%

Ability to customize how dishes are prepared(e.g., choose my sandwich toppings)

Clear identification of healthier andhealthiest food choices

Large selection of healthful menu items (e.g.,heart healthy, low calorie)

Nutritional information (calories, fat content,etc.) on menu items

Availability of smaller portion sizes

Staff knowledgeable about nutritionalaspects of menu items/ingredients

Menu information to help manage specifichealth conditions

Symbol next to menu items that have beenapproved by a third-party health…

Separate menu featuring healthy or lower-calorie options

Large selection of organic menu items

Overall

Core

Mid-level

Periphery

Q62. How important are the following features to making the restaurant a health and wellness destination for you? (Top-2 box: Extremely/Fairly important). Bases: Overall (n=540), Core (n=58), Mid-level (n=404), Periphery (n=78). Source: Health + Wellness Deep Dive 2011.

Mid-level consumers are more likely than Periphery consumers to want the ability to customize dishes, desire healthier options and portion sizes



A r e s t a u r a n t ’ s “ h e a l t h f u l n e s s ” i s a s s e s s e d b y h o w c o n s u m e r s f e e l a f t e r w a r d s

As consumers increasingly look within to assess their own wellness status, they assess the healthfulness of a restaurant by how they feel after eating:

• Heavy or light?

• Normal or disrupted digestion?

• Good energy or fatigued?

“It was one of the best feelings I’ve had eating at a restaurant – you just get this feeling of freshness, of not eating junk.”

- Outer Mid-level consumer

“You know, when you come home feeling greasy, and have to run it off or sleep it off – that’s not a healthy experience.”

- Outer Mid-level consumer

The popularity of juicing is in part due to the feeling of doing something good for yourself and the feeling of lightness after consumption (versus a greasy hamburger)



T h e l a r g e m a j o r i t y o f U . S . c o n s u m e r s a r e i n s i d e t h e W o r l d o f S u s t a i n a b i l i t y

Anyone who considers sustainability when making purchase decisions inhabits this "World of Sustainability"

* Familiar/Unfamiliar with the “term” sustainability Segmentation is based on self-reported respondent behavior regarding: animal testing, packaging, community issues, supporting companies helping the local community, recycling and price. Base: All consumers (n=1,841), Consumers inside the World of Sustainability (n=1,587). Source: Sustainability 2013 - When Personal Aspiration and Behavior Diverge.

*

*


S u s t a i n a b i l i t y i s c o m p o s e d o f Z o n e s o f R e s p o n s i b i l i t y

How consumers think about companies and their products in terms of sustainability can be divided into four zones:

Consumers flow seamlessly between discussion of the different zones

» Attributes in “responsibility zones” can ladder up to personal benefits (and vice versa)

» Sustainability attributes that most clearly also cue personal benefit are often regarded as the most relevant

» The more consumers evolve in the World of Sustainability, the more interconnected the zones appear

» When Sustainability and Personal Benefits meet, consumers are given the opportunity to “FEEL GOOD” about the products they’re using

Personal zone

Personal benefits ( e.g., health/safety,

finances, positive self-

regard) to the consumer

Social zone

Human and animal welfare;

improving physical and emotional well-being

Environmental zone

The equilibrium of the planet;

stewardship of water, earth,

and air

Economic zone

Distribution of monetary resources, jobs, and

profits

Source: Sustainability 2013 - When Personal Aspiration and Behavior Diverge.


U n c e r t a i n t y o v e r w h a t i t m e a n s i n f o o d s e r v i c e i s t h e p r i m a r y b a r r i e r t o m a k i n g s u s t a i n a b l e p u r c h a s e s

More consumers are uncertain about whether or not a product is sustainable in a Casual Dining Restaurant than in other food service venues

Mean Fast Food

Cafeteria Casual Dining

I’m not sure when a product is sustainable or not

30% 29% 26% 33%

Can’t always find sustainable options where I shop

23% 18% 26% 26%

I’m more comfortable buying the product I’m used to

25% 24% 27% 23%

I question whether the product will work/taste good enough

18% 16% 17% 21%

When I am actually shopping I forget to think about sustainable options

17% 13% 20% 18%

It’s too confusing to navigate through the sustainable options

15% 15% 14% 17%

I need to look out for myself (or my family) before I worry about other concerns

16% 14% 20% 15%

I want to focus on immediate needs rather than something in the distant future

10% 9% 13% 8%

The opinions/requests of others (family, friends) outweigh my desire to buy sustainable products

14% 12% 18% 13%

My purchase won’t really make a difference

11% 8% 17% 8%

Buying sustainable products just isn’t for me

11% 10% 19% 6%

Q60. Even though you might like to eat at sustainable <PIPE CATEGORY>, you probably don’t always do so. What are the main reasons you don’t make such a purchase? Bases: Significant shoppers inside World of SUS who ate at category in past 3 months; Fast Food Restaurant (n=278), Cafeteria (n=241), Casual Dining Restaurant (n=306). Source: Sustainability 2013 - When Personal Aspiration and Behavior Diverge.


I n t h e W o r l d o f S u s t a i n a b i l i t y , c o n s u m e r s u n d e r s t a n d f o o d s e r v i c e i n t e r m s o f i t s r o l e i n t h e l o c a l c o m m u n i t y

Consumers feel good about eating at food service operators that they can see are playing an active role in their local community

They are seen as both an employer and the venue for vibrant social interactions and events

• Active: providing jobs, hosting events, providing sustainable products supporting causes

• Passive: simply contributing positively to the overall ambience of a neighborhood with a strong dining experience

Consumers assume that a company that looks after its staff and its community, will also care about its food quality

• As a result, these attributes are felt most intensely in the casual dining context, where consumers are looking for a higher quality experience

Food Waste

Food waste is not top of mind for consumers

However, consumers can be impressed by programs that make innovative use of “waste” e.g. giving left-over product to the homeless

Composting is admired, but consumers express confusion over what waste to put what receptacles



I n f o o d s e r v i c e , m e n u s e l e c t i o n s a n d c o m m u n i c a t i o n s a r e t h e f o u n d a t i o n o f a s u s t a i n a b i l i t y h a l o

Consumers tend to think first about the meat products

» Humane treatment of the animals (grass fed, pasture raised, free range, cage free, no hormones or antibiotics)

Of next importance are seafood (e.g., sustainable farming or fishing), produce (e.g., organic, non-GMO, local) and coffee (Fair Trade)”

The Consumer Perspective

Marketing to consumers’ sustainability and H&W interests can be achieved simultaneously by appealing to Personal Benefits – personal/familial health and safety and quality experiences.

Key attributes include:

• Fresh

• Organic

• Local

• Heritage / Heirloom

• Seasonal

• Artisanal


SUSTAINABILITY

Personal Benefits

HEALTH & WELLNESS


C o m m u n i c a t e a n d d e l i v e r P e r s o n a l B e n e f i t s t o b e r e l e v a n t



K e y T a k e a w a y s

• Healthy = Quality. Cue higher quality (e.g., heirloom, seasonal) to convey health rather than taking a strictly nutritional approach. Customization is the critical health attribute at foodservice.

• Foodservice occasions are often indulgent occasions, and there is room for indulgence (e.g., exciting global flavors) in health and wellness

• Routine, frequent eating occasions and fast food occasions prime consumers’ health conscientiousness

• Sustainability is difficult to perceive/understand in foodservice contexts. The quality of the food/menu (especially meat, seafood, produce, coffee) will speak volumes.

• Sustainable = Quality. Cue higher quality and health and wellness with sustainable attributes (personal benefits, social responsibility)

• Positive community involvement is critical for foodservice to be considered a place for consumers to “feel good about” patronizing.

• Marketing to Personal Benefits (product quality/safety) will enable foodservice operators to speak simultaneously to consumers’ health and wellness and sustainability interests.


ABOUT THE HARTMAN GROUP

The Hartman Group, located in Bellevue, Washington, blends

leading-edge customized research and consulting to understand

the subtle complexities of consumer and shopper behavior. Since

1989, Hartman Group has provided unique perspectives on the

underlying motivations and behaviors that move the needle for

our clients. To learn more about how Hartman Group stays sharply

focused on how consumers live, shop and use brands and products

visit:

www.hartman-group.com

Sign up for our consumer insights briefing: www.hartman-group.com/hartbeat

THE HARTMAN GROUP, INC

3150 RICHARDS ROAD, STE 200 BELLEVUE, WA 98005

TEL (425) 452 0818 FAX (425) 452 9092

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Health & Wellness and Sustainability at Foodservice: Our ...Health & Wellness and Sustainability at Foodservice: Our Mid-term Future CIA-Harvard Menus of Change® National Leadership