DAWN FARMS TOP 9 | ISSUE 17 | 2018

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. STARBUCKS ACCELERATES DRIVE-THRU

2018 is the year of the drive thru according to Starbucks US, who is accelerating its ‘window sales’ in a bid to stay relevant to consumers’ need for speed and convenience. Recognising that their successful ‘meet up and chat’ third space culture does not suit all coffee missions, some 80% of their new US cafes will offer a drive-thru facility. In one example quoted, sales were two-thirds higher at the café serving drive-thru customers. Speed of service is a key differentiator; recently QSR magazine revealed Starbucks is currently slower than McDonald’s, Panera and Tim Hortons, offering them an opportunity in this QSR arena – click to here to see how they stack up>> 

2. ARAMARK & JAMIE OLIVER TEAM UP

Jamie Oliver has announced a 10-year partnership with food service provider Aramark with a view to enhancing food choices in workplaces across the UK and northern Europe and in doing so spark a ‘nutritional revolution’. The venture will see Jamie’s Italian restaurants such as Jamie Oliver’s Diner and Jamie’s Deli opening in Aramark’s existing retail and office environments, creating more social dining experiences on-site to compete with high street brands. Aramark will also have a new culinary partner with which to develop new and exclusive concepts. While Jamies goes corporate, other chefs are taking up the school dinner mantle “100 restaurant chefs in 100 schools by 2023” – click here to find out more>>:
 

3.  DOMINO’S TELLS IT LIKE IT IS 

After launching its virtual ordering system in 2014, Domino’s new voice recognition app ‘Dom’ can now take your order over the phone. As part of its aim to become 100% digital, Domino’s tested the app in store and found that there are still millions of customers who like to phone in their order. Quoting Domino’s CEO, “Voice is a more natural way for people to interact with technology and that’s why we have been investing in AI.” In a further convenience step, and thus encouraging impulse orders, US consumers can now order pizzas from 150,000 Domino’s ‘hotspots’ such as park benches, the beach and other landmarks.

4. TOP US FLAVOUR TRENDS

What cuisines are causing a stir in the US eating out market? Middle Eastern for one (dates, mint, pistachio); greater overlap between sweet and savoury ingredients (olive oil, vinegar); while functional ingredients are adding colour and flavour to food and drinks to make them more appealing (sumac, ube/purple yam, black garlic). To find out more including new spice blends, meaty flavours (hint – smoked meats still very much on trend) and what is Japanese kukumi (umami is very 2017…) – download Mintel’s US Flavours report >> Meanwhile, Canadian restaurant chain, Paramount Lebanese Kitchen launched not 1 but 3 restaurants in London last week, offering a unique fast casual dining experience– one to watch…

5. MCDONALD’S NEW HQ EXPERIENCE

McDonald’s new corporate headquarters opened this week in Chicago – including a 6,000-square-foot restaurant on the ground floor. This effectively combines all its modernisation initiatives under one roof. There is also a unique rotating menu featuring global innovation as well as the standard US menu. For example, cheese and bacon loaded fries (Australia, Spain), mozza salad (France), McSpicy chicken sandwich (Hong Kong) and Mighty Angus Burger (Canada). The one-of-a-kind restaurant also has a Latin-American style dessert centre.  A global map of golden arches is on display, lighting up when someone buys an item from a specific country. Click here to see inside McDonald’s ‘Experience of the Future’>>
 

6. VAPIANO TRANSPORT HUBS

Pizza and pasta specialist Vapiano (owned by the Italian Autogrill Group) has sets its sights on international expansion via high-traffic hubs - an increasingly desirable strategy in today’s competitive marketplace. Partnering with airport restaurant operator HMSHost International in a franchise model, Vapiano will launch eat in & takeaway outlets in airports, train stations and outlet centres across the UK, Scandinavia, Germany and the Netherlands.

7. PREMIUM BBQ ON US MENUS

Premium BBQ is firmly at the forefront of two American QSR menus this month, tapping into authentic American regional trends. Arby’s has tweaked its Bourbon BBQ Sandwich line-up replacing the Turkey with a new Bourbon BBQ Chicken (buttermilk chicken fillet, barrel-aged Kentucky bourbon BBQ sauce, brown sugar bacon, cheddar cheese, and crispy onions). Also in the range is an ‘upgraded’ Bourbon BBQ Triple Stack (now with chicken fillet, sliced Angus steak, smoked brisket, brown sugar bacon), as well as separate Bourbon BBQ Brisket & Bourbon BBQ Steak versions. Carl’s Jr has brought back its successful Memphis BBQ Thickburger featuring smoked pulled pork, Black Angus beef patty and Memphis BBQ sauce

8. NOMAD EXTENDS FROZEN AMBITIONS

2018 promised to be a year of acquisitions and a significant one to note is Nomad Foods’ purchase of the Goodfella’s Pizza business from Boparan Holdings subsidiary 2 Sisters Food Group. The £200m acquisition includes Goodfella’s Pizza business - a portfolio of branded and private label frozen pizzas manufactured in the UK/Ireland  - as well as the San Marco brand and 2 frozen pizza manufacturing facilities. Already market leaders, as owner of Birds Eye and Findus brands, this will expand Nomad Food’s share of the European frozen food market and create a platform for further growth. The CEO described 2017 as “an outstanding year” for the company.  

9.  QSR BRAND MOMENTUM IN UK

Whitbread’s plans to ‘spin-off’ Costa were confirmed this week, in a demerger process which could take up to 2 years. Growth in the coffee shop sector has slowed recently, as consumers have turned more cautious and footfall has fallen in the UK high street. Adapting to change, Costa has focused on putting Costa Express machines into convenience stores and IT investment into click-and-collect and variable pricing. A new Brand Momentum study by CGA/EI/Stone & River ranks Costa first in the coffee shop/food to go sector with scores showing it “can still attract new consumers while keeping existing ones happy”. To find out  which QSR brands are keeping their growth momentum, click here>>