Market

Market
Showing posts with label ambience. Show all posts
Showing posts with label ambience. Show all posts

Saturday, October 31, 2015

Fast Casual Foods-Evolution of eating out practices in the US

Eating out practice is a part of the societal evolution with the growth of modern industrial and business environment forcing families to spend less and less time in the kitchen to feed them. Such dining out is in vogue all over the world, it is most conspicuous in America and Europe. Over a period of time the concept of eating out has seen a sea change from formal dining to dining on the side of the streets. Remarkably fast food joints and food trucks have grown phenomenally that they are threatening the very foundation of established restaurants which provide ambiance and fine quality food preparations to be enjoyed in a relaxed atmosphere. Fast food restaurants serving products made mostly from frozen products offer low cost foods at a fast pace. These food caterers, mostly in chain mode, have hundreds of outlets across the country with standardized eateries, characteristic of each chain. A new catering concept called fast casual started a few years ago which seems to have caught the fancy of people as reflected by dramatic growth of this sector and though they are also fast food outlets, their food offerings are much superior in quality to those served by fast food set ups, though they may cost 50% to 100% more. Here is a take on this new trend.

"While fast casual chains do not compare to the robust revenue stream of restaurant giants like McDonalds, the industry has witnessed growth rates not seen in the quick service industry. It is reported that sales of fast casual outlets rose by 10.5% in 2014, compared with 6.1% for fast food chains. Notably, industry leader Chipotle is enjoying 20% annual growth rates. Combining ambience and meal quality comparable to casual dining with the convenience of a quick service chain, the fast casual industry has been a model for current and future success. A number of factors, including affordability in conjunction with quality, taste, convenience, and customer service, form the basis for fast casual outlets.In general, a fast food meal costs between $5 and $7 while offering average food quality, no table service, and limited customization. Conversely, the fast casual concept incorporates affordability with high quality ingredients. While the typical cost of fast casual meals is more expensive than their quick service counterparts, consumers are afforded more natural ingredients and custom meals. As mentioned previously, Chipotle Mexican Grill is at the forefront of the rapid growth. Chipotle offers made-to-order meals with plenty of options for customization. As consumer habits shift to healthier life choices, ingredients labeled organic, fresh, and non-GMO are associated with higher prices. As a result, the average Chipotle customer spends $11.56 per visit with prices continuing to rise as a result of commodity price fluctuations. However, the sector still maintains high volume sales, indicating that people prefer quality and hygiene over low prices. (For more, see: 22 Ways To Fight Rising Food Prices.)"

Rise of fast casual food outlets also saw the emergence of food trucks which offer foods made from fresh raw material though they do not have very comfortable sitting facilities, most of them serving foods to customers on the sides of designated roads. They enjoy the advantage of shifting their operation to places where customer density is high. Fast casual restaurants, on the other hand provide seating facility and serve many customized products prepared in full visibility of the customers! Look at India where fast food restaurant concept is emerging now, most of them being of American origin through some of their offerings are "adapted" to local flavor preferences. There are a few Indian traditional food caterers who have started fast food outlets serving standardized  ethnic foods while road side vending is also growing with millions of cart based and van based caterers doing decent business in almost all towns and cities in the country. Of course these street food vendors cannot be compared to food truck business in the US, especially in terms of hygiene, sanitation and safety.

V.H.POTTY
http://vhpotty.blogspot.com
http://foodtechupdates.blogspot.com

Monday, November 3, 2014

Changing perceptions about fast food restaurants-How long the new trend will last?

Fast foods and junk foods are almost synonymous and both of them are set to decline their influence on American consumers in the coming years, if a perceptible trend noticed  among younger population regarding their food preferences is any indication. Hamburgers, Hot Dogs, French Fries are all iconic in the landscape of the "eating out" consumers but there appears to be a fatigue developing among the people regarding the desirability of consuming them if they have to avoid life style diseases like CVD, Blood Pressure, Diabetes, Obesity etc. Constant exposure of the younger generation consumers to the "cause and effect" of junk food eating, emergence of organic foods as a major player in the market and greater awareness about the health advantages of fruits and vegetables seem to be persuading them to shun junk foods and fast foods. California where the "vegetable" revolution is taking shape a number of chain restaurants are attempting to offer stiff challenges to the well established fast food giants by attracting more and more clients offering them tasty foods based on vegetables stressing that they are great in quality and safety though the health advantages are not over sold. Here is a commentary on this development which may be a fore runner of what will happen eventually around the world in the coming years. 

"America's interest in locally sourced and healthy foods has spurred a boom in farmers markets and farm-to-table restaurants and has expanded organic produce at the supermarket. Now, a number of upstart chains trying to tap that interest are taking aim at traditional fast food by moving leafy greens and fruits to the center of the plate.
These rapidly expanding restaurants want to revolutionize the fast-food industry, bringing healthy fare to the masses who typically don't shop at Whole Foods. At the same time, they are stealing customers from stalwarts such as McDonald's.The most bankable word in food service is fresh.- Restaurant consultant Aaron Allen These chains, several based in California, see a juicy opportunity in the Golden State, with its bounty of health-obsessed diners interested in the latest food fads. Such chains make up just a tiny fraction of the $200-billion fast-food industry in the United States. But analysts predict this sector will boom as health-conscious consumers ditch the burger and fries in favor of quickly prepared healthy meals. "The most bankable word in food service is fresh," said restaurant consultant Aaron Allen. Many are rethinking the fast-food experience beyond food. At some, you'll find real china replacing paper dishes and foam cups for in-house eating. There are cushy chairs and communal tables, not plastic ones that are nailed down. Several offer beers from local breweries and menus that change with the seasons. "People want to eat more vegetables that are nutritious and unprocessed," said Greg Dollarhyde, chief executive of Santa Monica-based chain Veggie Grill. "The big trend now is make it better for me, but I don't want to give any flavors up." Many of these restaurants cater to salad skeptics or meat lovers who shy away from anything green or overly healthy. "I don't like saying the H word because that's going to turn people off," said Mike Donahue, co-founder of Lyfe Kitchen, which has expanded to 13 locations since opening its first restaurant in Palo Alto in 2011. "I tell our people they have got to start every message with, 'Tastes great, tastes great, tastes great. And oh, by the way, it is good for you.'"

There is this Soup Plantation chain where customers can pick up at least two dozens of salad combinations selecting from a range of vegetables and adjuncts which can have a variety of flavors and taste when assembled on the plate. Similarly there is the Veggie Grill chain which strategically plans its marketing to attract clients without overs selling the health claims. All these new players are exploiting the strength of organic food and locally made food movements to carve out for them selves a viable market which if the present growth is any indication will sideline many of the existing fast food chains in attracting customers in the coming years. Innovative design of eating places and use of china wares provide a different eating experience compared to the staid ambienc associated with many of the established fast food chain restaurants. When one looks at the present trend, credit must be given to the good old Subway restaurants which offer, though through a fast food format, some of the most healthy menus predominantly based on vegetables. No doubt this is a welcome development for Americans who face a bleak future caught between the juggernauts of fast foods, junk foods, GMO foods and heavy meat based foods.    

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com