Restaurant Trends: Economically Green To Free Buzzes

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800.996.BAGS (2247) www.commandpackaging.com 3840 E. 26th Street, Vernon, CA 90058 From “Economically Green” to “FREE Buzz” Highlights on three very popular restaurant trends... Command Packaging, helping restaurants meet today’s trends. As the leading U.S. manufacturer of bags, we continue to drive plastic bag innovations through solutions focused on industry and environmental needs. May 09

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Transcript of Restaurant Trends: Economically Green To Free Buzzes

Page 1: Restaurant Trends: Economically Green To Free Buzzes

800.996.BAGS (2247)www.commandpackaging.com3840 E. 26th Street, Vernon, CA 90058

From “Economically Green” to “FREE Buzz”Highlights on three very popular restaurant trends...

Command Packaging, helping restaurants meet today’s trends.As the leading U.S. manufacturer of bags, we continue to drive plastic bag innovations through solutions focused on industry and environmental needs.

May 09

Page 2: Restaurant Trends: Economically Green To Free Buzzes

www.commandpackaging.com3840 E. 26th Street, Vernon, CA 90058 800.996.BAGS (2247)

Putting Meaning in MarketingCSRWire.com tells us that consumers around the world are voicing a strong desire for marketers to connect their brands to social action. They reported that a majority of consumers, 87%, feel it is their duty to contribute to a better society and environment; 82% feel they can personally make a difference; and 83% are willing to change their own consumption habits to help make tomorrow’s world a better place. Three-quarters, 76% say they like to buy brands that make a donation to worthy causes. As a result, we find producers focusing much of their packaging labeling to telling the good environmental story. USA.infores.com stated, “...merchandising strategies focus on telling stories...Dannon, for example, has created promotion strategies based not on the specific Dannon brand, but on the benefit to the shopper. To a degree never before seen, today’s story includes a plot line about sustainability. How was the product created? Were the farmers behind the product fairly compensated? Can the soil in which the ingredients were grown support future crops?”

Economy & Environment Combine to Change Consumption HabitsThe Wall Street Journal reported, “...the twin currents of an economic downturn and rising concern about the environment are merging in a shift in consumer psychology. After a decade of conspicuous consumption, many middle- and upper income Americans are no longer comfortable showing off $300 Gucci sunglasses and $8,000 Hermes Birkin bags. They are developing a distaste for extravagance that promises to affect spending on everything from cars and travel, electronics, to fashion and household

GREEN meets ECONOMICS

goods -- and to last at least as long as the recession.”[The message: It is “cool to be cheap” or at least “thrifty and green”.]The Wall Street Journal further stated, “The shift began even before the credit markets broke down and the stock market plunged. Many Americans had already begun to question their ‘freewheeling consumption’ and move toward a culture of responsibility,’ says J. Walker Smith, president of global trends researcher Yankelovich, a unit of the Futures Company. For many, he says, environmental concerns were an important factor in this shift.” At the same time, new research by Natural Marketing Institute (NMI) suggests that more than 80 percent of the total U.S. adult population have some type of green motivation, offering what NMI calls “a target for green and eco-friendly products and services” that make sustainability “much more attractive” and increase “the imperative for businesses to engage with consumers of all types.”

From Wall Street Journal publications to Forbes.com, these headlines are turning more than just environmental heads: • “Command Packaging officially licensed by the

CA State Department of Conservation to serve as your recycler... - taking your plastic waste to form your packaging solutions...”

• “Is Walmart going green?, CEO vows to be ‘good stewards”

• “New Hampshire company to help restaurants turn vegetable oil into fuel.”

Consumers are increasingly seeking alternative solutions that not only combat waste, include good sustainable practices that save money. With the downturn in the economy, consumers with the buying power are more educated and discerning shoppers as “Green washed attempts” that gain some attraction in the beginning eventually lose ground. They want it all, “Good honest stewards of the environment” and “Economical”.

Page 3: Restaurant Trends: Economically Green To Free Buzzes

www.commandpackaging.com3840 E. 26th Street, Vernon, CA 90058 800.996.BAGS (2247)

DOWNSIZING, Feel Good Breakfast

Mini foods, value prices, lighter options, downsizing, less consumption... was the biggest focus for restaurants in 2008 and continuing on to 2009 ~ fueled by consumers looking to stretch their dollar and nutrition labeling laws. McDonald’s is right on track with these trends as it focuses efforts on delivering snack items like the downsized Big Mac and enticing consumers with “more for less” advertisements. Similarly in January, Jack in the Box restaurants announced their new “Taco Nachos” snack offering. “Johny Rockets go mini” and The Cheesecake Factory expands into a “16-item small plate” selection. Carl’s Jr combats decreased consumption by telling men they need to eat between meals to prevent crabby behavior, while suggesting they try the new Crisp Burritos snack treats to combat the problem.

For restaurants that can quickly adapt to creating smaller portion offerings while taking advantage of new menu labeling laws, may have a more competitive edge according to the results of a Technomic consumer survey. The study showed that 82 percent of New York City residents surveyed stated that the posted calorie information affected what they ordered, and 60 percent claimed that it has affected what restaurants they visit.

Consumer’s DowngradeThe National Restaurant News reported on the findings of a recent study that revealed how restaurants like Panera Bread, Pizza Hut, Qdoba, Applebee’s, Olive Garden, Chili’s, along with other QSR chains like McDonald’s, KFC, and Taco Bell were fairing best in this economy as consumers appeared to be trading down to lower priced offerings. Comfy feel good foods offered by BJ’s, Chipotle and Buffalo Wild

Wings are also making an impact as each one of these restaurants reported sales increases into 09.

With breakfast sales being 25% more profitable to restaurants and still lower cost to consumers, it’s no wonder they are increasing. Performance reports from leading restaurants indicate that despite the slow down in the economy, consumers are continuing to spend on breakfast but opting more for on-the-go options. Burger King leads this trend by extending its breakfast hours earlier this year. Staying ahead of the trends, McDonald’s restaurants increased their breakfast time one hour earlier last year and ramped their gourmet coffee promotions along with other breakfast offerings, crediting a part of their increases to breakfast sales. Earlier in April, IHOP, well known for its breakfast menu, announced its newest franchised restaurant to complete its presence in all 50 U.S. states and further demonstrating the strength of comfy breakfast offerings. [Consumers may opt out of eating out of other meals, but the low fair cost generally associated with breakfast menus combined with the comfy feel good choices, America is definitely supporting the importance of including breakfast.] Starbucks gets it as it too expands into breakfast goodies and despite decreased performances, is still a big giant in the coffee shop business. Jamba Juice gets in on the action, offering consumers a selection of low cost feel good oatmeal offerings to entice the health conscious to-go consumer. Last but definitely not least, Dunkin’ Donuts announced aggressive franchise expansion in existing markets and enter new markets this year as part of a “steady and strategic growth strategy”.

Restaurants go through a frenzy of change to attract buyers in the new climate with mini menus and lighter smaller choices, while retailers continue to focus on discounts to attract buyers.

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800.996.BAGS (2247)www.commandpackaging.com3840 E. 26th Street, Vernon, CA 90058

FREE is the NEW BUZZThe folks at TrendWatching.com defined this movement perfectly: GENERATION G | “Captures the growing importance of ‘generosity’ as a leading societal and business mind set. As consumers are disgusted with greed and its current dire consequences for the economy—and while that same upheaval has them longing more than ever for institutions that care—the need for more generosity beautifully coincides with the ongoing (and pre-recession) emergence of an online-fueled culture of individuals who share, give, engage, create and collaborate in large numbers.”

This page is dedicated to some of the most successful FREE BUZZES we found to gain consumer attention and ignite sales. Free offers can go farther if a social purpose can be tied to the offer as Corner Bakery’s “Get to Know Your Neighbor” program of 2007 demonstrated. The restaurant chain’s offer focused on helping neighbors connect by giving away 10,000 specially designed travel mugs - one for you and one for your neighbor - and inviting recipients to enjoy a free cup of coffee at their neighborhood Corner Bakery Cafe.

Change Your Clock, Change Your Burger

Arby’s ® Offers Free Roastburger™ Sandwiches to Kick Off Daylight Savings Time

Don’t forget the most important buzz,

FREE SHIPPING (up to $600 savings) on your first purchase through RestaurantBags.com, enter promo# NRA09 at checkout.

Be careful with the power of FREE, especially with Oprah involved. It seems the recent KFC and Oprah joint promotion worked too well as supply could not meet the demand.

“...and what I realize is, is that people are hurting even more than I recognized.”