CHICAGO (PRNewswire) — Consumers primarily look for good value when dining out, and low prices can help them justify the money spent. However, the latest research from Technomic shows that when consumers consider a restaurant's value proposition, they're thinking about much more than just price.
Technomic's new study on value and pricing for the Canadian market identifies a number of crucial value elements versus second-tier factors, as well as how the value equation differs depending on when and where consumers dine out.
"Low prices and deals are very important to Canadian consumers, but they also indicate that several other factors are key to delivering on their idea of good value," said Darren Tristano, Executive Vice President of Technomic, Inc. "Foodservice operators need to promote other attributes of their menu and concept—whether it's food quality, the opportunity to customize ingredients, preparation methods, service or atmosphere—in order to strengthen their overall value perception."
To help foodservice executives understand the latest behaviours, preferences and attitudes of consumers regarding pricing and the value equation, Technomic has published its Canadian Value & Pricing Consumer Trend Report. Interesting findings include:
- In creating good value, food and beverage attributes trump price: for example, 87 percent of consumers rank aspects relating to food and beverage as the most or second most important element of value at fast-food restaurants, while just 74 percent say the same for price.
- Forty-one percent of consumers say that the ability to customize their meal is either important or extremely important in creating good value, and 39 percent say the same for staggered portion sizes at different price points.
- "Fresh" descriptors can increase consumer price thresholds: 42 percent of consumers say they would be likely to purchase and pay more for food and beverages that are described as "fresh."
Technomic's Canadian Value & Pricing Consumer Trend Report provides comprehensive research on the latest menu and consumer trends impacting the value equation and pricing strategies, organized into five sections:
Menu Insights—uses Technomic's exclusive MenuMonitor data to track menu developments for value-oriented offerings, including combo plates and value meals, at restaurant chains in Canada's Top 250 segment.
Consumer Insights—analyzes consumer behaviour and attitudes toward value and pricing, based on findings from a nationally representative survey of 1,000 Canadian consumers.
Competitive Insights—examines the five limited-service and six full-service chains that consumers rate highest for overall value, as measured by Technomic's Consumer Brand Metrics (CBM) program.
Outlook: Trends to Watch—explores emerging menu, concept and consumer trends that are currently impacting how restaurant operators are promoting value.
Profiles—appendices feature in-depth concept and value-positioning profiles for 10 restaurant brands that are the top-ranked restaurants for overall value, illustrating how these concepts are winning at the value equation in 2013.