The New Value Platform

1960’s

What’s For Dinner?

Grocery Stores: Mom & Grandma

Cooking

1970’s

Let’s Go Out For Pizza

Growth of Foodservice

Segments

1980’s

We’re Open for Breakfast, Lunch &

Dinner

Menu Parts Driven

Customized Satisfaction

On our schedule

Be ready when we are

On their schedule

Be ready when they are

The Transformation of “Food”

2010+

I’ll eat “any time”, are you ready?

Consumer “Need State” Driven

1990’s

I need a late night snack

Multi-Dayparts Emerge

2000’s

I want the entire menu all day

Meal Occasions Driving Demand

A new market has emerged. • There was a time, not too long ago, when foodservice

segments were clearly defined.

• Then a few things happened.

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Consumers want

better food, quicker

Fast Casual

Booms Recession shakes

the market

Spending declines, but consumers still

want better food quicker and cheaper

An interesting phenomenon. “Operators in all segments are moving toward an optimum value platform nested between full-serve and quick-serve spectrums”

- More upscale culinary interpretations

- Using downscale pantries

Two strategies are in place:

- Casualization: Leading high end chefs extending their culinary talents to a more mainstream audience while delivering maximum value

- Upscaling the Downscale: Quick service operators upgrading existing ingredients and menu items to bring a heightened value perception

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Rick Bayless launched XOCO with a street food-focused menu. Great food brings lines of hungry patrons to the door all day, everyday.

Tom Colicchio of Bravo’s Top Chef series has had great success with his fast casual concept, ‘wichcraft. What started as an NYC sandwich shop has become a national chain success.

Michael Kornick of MK and David Morton of the Morton Family partner to open DMK Burger Bar and serve a great $8 burger to lines of guests.

And the list goes on.

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The cause of the shift. • The growth of foodservice is evidence that consumers love to

eat out, but the recession slowed that down. When they returned to spending, their expectation was altered.

• Value was redefined—“fresh ingredients, fresh looking, good-tasting food at affordable prices” represented this “new value,” extending beyond a simple dollar amount.

• Consumer satisfaction is driven by the food attributes—food quality, followed by taste and flavor and then by the visual appeal of the food.

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We’re easily influenced.

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“Upscaling the Downscale” • It starts with better ingredients… what is the best I can get

within my price range? – Less expensive cuts of meat

– Splurge with items that you need less of like cheese, spices, fresh vegetables and sauces/condiments

• Menu items like burgers, pasta, pizza, and sandwiches have become a playing ground for chefs and operators. They start with an inexpensive base, but leave plenty of room for building with interesting toppings and flavor blends.

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The platform in practice.

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Ingredients like ricotta, fontina, roasted garlic, Parmesan, mozzarella, sea salt, olive oil, parsley or tomato sauce, mozzarella, pepperoni and oregano

Housemade sodas like the "Don't Forget Your Ginger Roots Soda" completes the food experience

Pizza was one of the first platforms that put this proposition into practice , using unexpected combinations, unique sauces, premium proteins and artisan cheeses.

The platform in practice.

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Ingredients like artichoke hearts, roasted eggplant, shiitake and cremini mushrooms, and cucumbers and cheese choices including Wisconsin low-fat mozzarella, soy, parmesan, ricotta or feta. Organic tomato sauce and both regular white and winter wheat flour crusts deliver against their brand promise.

“healthy, vegetarian-friendly, real”

Pizza was one of the first platforms that put this proposition into practice , using unexpected combinations, unique sauces, premium proteins and artisan cheeses.

The platform in practice.

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Checkers brought this platform to the QSR level, delivering a better burger to a base of loyal consumers. Flavor Built Burgers offer a customizable burger platform that delivers bold, indulgent flavors through fresh, premium ingredients found normally only in a full-serve, casual-dining segment.

Burgers have taken the stage in the last few years through better meat grinds, artisan cheese and breads, premium secondary meats and signature condiments.

The platform in practice.

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Burgers have taken the stage in the last few years through better meat grinds, artisan cheese and breads, premium secondary meats and signature condiments.

The platform in practice.

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Sandwiches are a prime platform for adding value: portable, familiar, craveable.

The platform in practice.

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Pasta is simple and inexpensive and offers a blank canvas for creativity. Creative flavor-pairings, artisan cheeses and added ingredients for an unexpected twist are key.

The platform in practice.

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Ice Cream is the number one dessert in the U.S. It’s familiar and comfortable, and with a few twists through added flavor and interesting ingredients, it becomes extraordinary.

The “new” value.

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food environment experience • Evaluate

your menu and your pantry.

• What can I add or tweak to “wow” my guests?

• Evaluate the environment.

• How does it make your guests feel?

• Evaluate the experience—functionally and emotionally.

• What will they remember?

How do we deliver? In 4 ways.

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RELEVANCE

INTRIGUING FLAVOR

AFFORDABLE

BELIEVABLE

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