DAWN FARMS TOP 9 | ISSUE 31| 2018

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. NOTHING CRYPTIC ABOUT MACCOINS

Demonstrating its commitment to staying relevant, McDonald’s has kicked off its 50th anniversary celebrations by giving away limited edition ‘MacCoins’ whenever a customer orders one of its iconic Big Macs, starting this week at 14,000 US locations. Overall more than 6.2 million MacCoins will be distributed globally. Customers can share, collect or redeem the MacCoins for another Big Mac in more than 50 countries throughout 2018. There are 5 unique designs of MacCoin, each celebrating a decade from ‘70s flower power to the ‘10s evolution of communication. Inspiration for this initiative came from the now famous Big Mac Index which uses the price of Big Macs to reflect currency values.

2. AMREST APPETITE FOR SUSHI

July has been a busy news month for Amrest – investing in both online ordering platform Glovo and burger chain Bacoa. Its 3rd acquisition is upmarket Sushi Shop chain for €240mn. Sushi represents a new and exciting category for Amrest as well as additional strength in delivery. Founded 20 years ago, Sushi Shop is the leading European sushi brand with over 160 outlets across 12 countries (mostly in France). It offers a wide range of Japanese and Californian-inspired sushi, sashimi, poke, tartare and more. Almost two-thirds of French people have tried sushi at least once while a third of 20-34-year-old French people consume it regularly (Statista 2016).

3. CAFÉ-CENTRICITY TAKING HOLD 

The world is fast-becoming ‘café-centric’, according to a global survey by Coca Cola/Technomic. While the US, China and Japan are the largest foodservice markets in terms of sales – actual usage is highest in the UAE and Colombia. One clear trend is evident worldwide; café culture is the fastest-growing menu category. While these comfortable environments provide a place for people to connect, one perhaps conflicting trend is the growth of takeaway food ie buying food and going somewhere else to eat it (representing 59% of foodservice meals globally). Other opportunities include healthy options; some 69% of consumers worldwide identify this as being a very important factor in their eating-out decisions. 

4. PANERA'S DOUBLE BREAD BONANZA

Check out the latest menu innovation from US fast-casual/bakery chain, Panera Bread - a double hollowed-out bread bowl filled with either soup and mac & cheese (or a combination of both). Following the success of its original bread bowl, Panera is testing a mini-baguette version, meaning consumers don’t have to choose between two soups, or they can share it with someone else. Panera recently introduced two new mac & cheese dishes to its menu; Baja Mac & Cheese, topped with avocado, pico de gallo, and coriander, and Bacon Mac & Cheese. In other US menu news, Arby’s has added a premium smokehouse beef short rib to its sandwich listings.

5. ALCOHOL-FREE PROFITS?

Delivery apps like Just Eat and Deliveroo are a contributing factor towards the almost two-thirds drop in annual profits among the UK top 100 restaurants. While restaurants with a takeaway channel have benefited (13%) – the hit taken by on-trade alcohol sales has added to the overall difficult market conditions. Takeaway restaurants have also demonstrated their ability to adapt more quickly to food trends such as health, and for some restaurants delivery apps enable them to reach additional customers. Barburrito (Morgan Davies-led group) is testing a virtual restaurant brand (Mayella Mexican Kitchen) to maximise its delivery capacity via Deliveroo and Uber Eats, also offering menu variety and different pricepoints.

6. WINNING WORLD CUP CAMPAIGNS

Football, weddings, heatwaves and staycations have clearly benefited some indulgence categories this summer in the UK (such as beer, barbecues, frozen pizza and desserts) while others (such as frozen fish and veg) have suffered (Nielsen). While growth in ‘comeback kid’ frozen food has slowed in recent months – pizza and other savoury foods lead the category (up £100m+ on 2017 [52 w/e 18 June 2018 - Kantar]). Click here to see which World Cup campaigns engaged consumers most >> Food shortages are meanwhile never far from the European agenda – CO2 shortage affecting beer, chicken and fizzy drinks; hot weather affecting fruit prices, while Cypriot farmers are struggling to meet halloumi demand.

7. APPLEGREEN FUELS EXPANSION PLANS

Irish fuel and forecourt retailer Applegreen is to become majority stakeholder (55%) in the UK motorway service area group Welcome Break (€362mn). Applegreen plans to continue growing its stake, aiming for 70% share in the next 6 years.  Applegreen has approximately 343 sites across Ireland, the UK and a growing presence in the US, where it acquired the Brandi Group in South Carolina last year and has around 43 sites opening in Florida from September. Welcome Break will add 35 locations (including 29 hotels) and 85mn customers to its portfolio, which will widen its non-fuel focus, although some 70% of its profits already come from food and drink sales.

8. INSIDE SUBWAY’S $80MN REFRESH

At Subway’s global convention this week it unveiled a new initiative called Fresh Now, which will benefit from the $80mn being invested by parent company and franchisees across its 26,000 US footprint. Emphasising a more customised experience will be at the forefront, for example as well as new drinks ‘stations’, new ‘Signature Flavour Stations’ are being rolled out offering a choice of new spices, seasonings and spreads for consumers to add themselves. Click here to see Subway’s new look including new uniforms and menu boards >>

9. TEEN ANGELS OF TODAY

Today’s teenagers are thinking and behaving differently from previous generations of the same age. Social media, closer parenting (smartphone surveillance?), obsessive about future job prospects and an increasingly diverse ethnic population are among potential causes. Click here to understand what might be causing the drop in alcohol and drug consumption, less violence among peers, less underage sex, and teens paying more attention at school – taking life at their own pace> However, teenagers seem lonelier than in the past - the OECD’s PISA surveys show that the share of 15-year-olds who say they make friends easily at school has dropped in almost every country – a clear downside to the digital age.