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Food Bites 2011

Uncovering dining-out trends and understanding their impact on consumer behavior: A Qualitative Investigation

Copyright 2010 The Nielsen Company. Title Confidential and proprietary. of Presentation

Whats inside?
Background of the Study
Business Background Research Objectives Research Design Channel Definitions Part II: Trends in eating-out Trends in food service channels Emerging trends in food and beverage More views from the experts Summary and Recommendations

Key Findings and Insights


Part I: The Consumer Experience Perceptions of different channel types Deciding where to eat Consumer Behavior: Two points of view Observations on the competitive landscape

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Copyright 2010 The Nielsen Company. Confidential and proprietary.

Food Bites 2011

Introduction

Business Background
The rising number of food establishments in the country and the waves of food-related trends raise the question of how these factors are affecting the market and what consumers think about them. Nielsen Food Bites provides extensive qualitative analysis of the trends and developments in Philippine food establishments and offers meaningful insights on the attitudes and behavior of consumers.
Food Bites provides information on the current landscape of the Philippine food industry and explores how recent activities are expected to influence the direction of the market. Inputs from key opinion leaders and industry specialists provide significant depth and valuable expertise to the study. Feedback from consumers provides slices of whats happening on the ground and reveals the motivations behind their choices. The report integrates several qualitative research techniques along with Nielsen branded solutions to present a comprehensive investigation of Philippine food establishments.
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Copyright 2010 The Nielsen Company. Confidential and proprietary.

FOOD BITES 2011

Research Objectives
To understand the eating out behavior of consumers among different sectors or segments of the public. To uncover the current trends in eating out
Find out what are the significant trends in food/beverage related trends (i.e. cuisine, food types/styles, influences, dining out establishment formats, etc.). What are driving these trends?

To discover what are the emerging trends in dining out To gather insights regarding the competitive landscape and market situation
Who are industry key players? What major developments/activities had an impact on the dining out industry?

To get some indications on the future developments in the dining out industry

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FOOD BITES 2011

Research Design
Consumer Behavior Expert Observations

Focus Group Discussions in Metro Manila Six (6) focus groups among males and females from SEC BCD, aged 17 to 45 years old Regular eaters: defined as someone who eats at an outlet outside the home at least two a week for the past 3 months either in QSR, FSR, coffee shops, stalls, etc. (n.b., definition of regular based on findings from previous research.)

In depth interviews among chefs and foodies from all media (e.g., magazines and newspapers, TV, and the internet) Seven (7) interviews are conducted

Results are presented side by side wherever applicable.


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FOOD BITES 2011

Channel Definitions (1)


Characteristics / Description Offer quick meals and snacks served over the counter within a few minutes Patrons wait and pay before eating Self-service; food and beverage options are placed on a menu board Food and beverages are served in disposable packaging

Quick-Service Restaurant (QSR) / Fast food

Characteristics / Description Stand-alone outlets; serve main meals that are freshly cooked or prepared as ordered; requires certain preparation time Set-table service Offers complete range of food (e.g., appetizers, soups, salads, main course and dessert) and beverage options placed in a menu booklet Meals served on china in a relaxed atmosphere Patrons pay after dining

Full-Service Restaurant (FSR)

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FOOD BITES 2011

Channel Definitions (2)


Characteristics / Description Self-service outlets that are open at least 20 hours a day Smaller than supermarkets (only 1-2 cash registers) Must have a food service or snack bar station Convenience Stores Mandatory Characteristics Limited food offerings; focus only on certain specialty food or drink items (e.g. coffee, pasties, donut, ice cream, etc.) Patrons wait and pay before consumption Self-service; food and beverage options are placed on a menu board Specialty Food Shops (Coffee, Pastries, Donuts, Ice Cream)
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FOOD BITES 2011

Channel Definitions (3)


Characteristics / Description Fixed or mobile stand-alone outlets which serve snacks and drinks Located in retail formats (e.g. malls, supermarkets, etc.), transport stations (MRT, LRT, bus terminals, etc.) or street corners Food prepared using simple burners and cooking equipment Food and beverages are served in disposable packaging No eating area

Food Stalls / Food Carts / Kiosks

Mandatory Characteristics Fixed stand-alone outlets on street corners which serve meals and snacks Food prepared using simple burners and cooking equipment Food usually served cafeteria-style (turo-turo) and may change from day to day Carinderia
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FOOD BITES 2011

Key Findings and Insights

Part I: The Consumer Experience

Perceptions of Channel Types

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FOOD BITES 2011

Roles of Different Channel Types


QSR, CVS and Food Stalls are the most affordable and accessible channels; FSR and specialty food shops are for special occasions and hanging out
QSR: The Class Equalizer / Part of Life
Not more than 10 minutes andun sa iyo ang pagkain kaya quick service. (C2D, 22-30 y/o) Never miss to go. Almost everyday na yan. Kung baga part na siya ng life mo. (BC1, 30-45)

Food stalls/kiosks (mall or street) : Food On the Go


Yung mga high end street food yung habang nag sho-shopping ka kumakain. (BC1, 31-45 y/o) Nasa ilalim ng LRT, MRT, bus station, sa tabitabi. (C2D, 22-30 y/o)

FSR: Dining as an Experience / Celebration and Reward


For high end clients. The price is expensive. (BC1, 22-30 y/o) Compared sa fast food pag order ka pay na, ito with menu . Sa resto need to ask for bill after eating. (C2D, 22-30 y/o)

Specialty food shops (coffee, pastries, ice cream) : Social Venue / A Place to Be Seen
Ang usual na ino-offer diyan eh coffee and cakes and desserts. (C2D, 17-21 y/o) Peaceful ang ambience. (BC1, 17-21 y/o)

Convenience store: Need for Speed / Pantawid Gutom


Convenience store usually grocery siya, pero sinama as kainan kasi may mga tables na din sa loob . (C2D, 17-21 y/o) Pantawid gutom we can eat siopao, hotdog, sandwich, ice cream, alak, chichiria. (BC1, 17-21 y/o)

Carinderia: Masa culture


Carinderia, bukas sa lahat ng gustong kumain. (C2D, 31-45 y/o) May kasamang dumi and flavor. (BC1, 17-21 y/o)

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FOOD BITES 2011

Consumers Segmentation of Channels


Consumers categorize outlets according to Price and Occasion. Upper SEC have wider knowledge of different cuisines.
Pricey Fusion Asian (Chinese, Japanese, Vietnamese) Italian Steakhouse

Restaurants Specialty Places QSR


Daily Dining

Convenience Stores Food Stalls / Kiosks Carinderia


Affordable

Occasional

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FOOD BITES 2011

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Mapping Channels by Eating Occasion Needs


QSRs meets needs on several dimensions; other channels answer more specialized needs.
FSR QSR Convenience Stores Food Stalls
Quick Fix Meals on a budget Travel stop-over / shopping break Impulse purchase Celebrations / client

Indulgence

Specialty Channels Impressing date


Satisfy a craving Relaxation Socializing / Projecting an Image Occasional Dining

QSR Convenience Stores Food Stalls Carinderia

All hours dining Budget Meals Safe, AutoPilot, Universal Choice

QSR

Kids choice Accessible

Daily Dining
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FOOD BITES 2011

Mapping Channels by SEC and Age


Channels visited and frequency of visit are also a function of SEC and Age. Driving home the image of QSRs as the class equalizers, these are commonly visited across SECs and Age groups.
High SEC
FSR: Casual Dining QSR: Fast Food QSR: Fast Food Convenience Store FSR: Fine Dining FSR: Casual Dining Convenience Store Specialty Food Shops Specialty Food Shops

Young
QSR: Fast Food Carinderia Convenience Store Food stalls/kiosks FSR: Casual Dining Carinderia QSR: Fast Food Food stalls/kiosks Convenience Store

Older

Low SEC
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FOOD BITES 2011

Deciding Where to Eat

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FOOD BITES 2011

Decisions: To Eat or Not to Eat Out


The decision to eat out may be a planned or impulse trip.
Decision to eat out done on the spur-ofthe moment. More often applies to: Snacking Merienda Media / advertising at malls, outside (e.g., billboards) Decision to eat out done in advance (e.g., hours, days, weeks). More often applies to: Regular daily meals Celebrations / Special occasions Treat to oneself Part of a larger trip (e.g., shopping)
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Impulse

Planned

FOOD BITES 2011

General Drivers for Channel Choice


The decision of where to eat is a function of three dimensions in a persons psyche.
Budget mababa. Kapag may pondo go for mahal. Accessibility (C2D, 22-30 y/o) Food quality Kung ano yung malapit, kung ano Quantity; serving size yung andyan. (BC1, 22-30 y/o) Customer service Cleanliness. ambiance Kapag madumi yung place, hindi Time to spare for eating Taste preference Cravings Mood Curiosity; novelty
malayong madumi ang food. (C2D, 31-45 y/o) Kapag ka nagmamadali fast food and kiosk na lang. Pag alanganin, sa convenience store. (C2D, 22-30 y/o) Sometimes if you want to think, hindi ka naman pupunta sa magulong place like Jollibee. You go sa mga coffee shops. (BC1, 31-45 y/o) Makikisama ka sa mga kasamahan mo on where they want to go. (C2D, 22-30 y/o) Malaking influence din yung advertisements sa TV. (BC1, 31-45 y/o) 19
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Budget muna, kapag medyo gipit sa

Functional

Emotional

Social

Companions Occasion Advertisements Word of mouth

FOOD BITES 2011

Deconstructing the Impulse Eating Out Trip


An interplay of both internal and external stimuli: channel itself becomes the trigger for eating out OR ones hunger makes one look for a place to eat. Budget is a primary consideration.
Impulse Eating Occasion/Trip Impulse Channel Choice First place seen at onset of hunger

Motivators
Functional Need: Relieve Hunger Accessibility Budget Emotive Need: Satisfy Craving

Channels that Satisfy Needs

QSRs Convenience Store Food Stalls / Kiosks

Got hungry while passing by the outlet Saw the outlet or merchandising material and enticed to purchase

Emotive Need: Satisfy Craving / Curiosity Be in because one has tried advertised brand

Carinderia (among lower class)

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FOOD BITES 2011

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Deconstructing the Planned Eating Out Trip (1)


Even planned eating trips adhere to budget monitoring, especially those that coincide with regular meals.
Planned Eating Occasion/Trip Impulse Channel Choice Regular meal

Motivators
Functional Need/s: Relieve Hunger Accessibility Budget Social Need/s: Enjoy time with family after shopping, church Emotive Need: Satisfy Craving Change of pace

Channels that Satisfy Needs QSRs Carinderia (among lower class)

Default eating venue Part of a larger trip, e.g., after church, shopping Alternative to canteen, baon

QSRs FSR (among adult upper class)

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FOOD BITES 2011

Deconstructing the Planned Eating Out Trip (2)


Budget and convenience (i.e., accessibility) take the back seat for planned eating occasions meant to satisfy deeper needs.
Planned Eating Occasion/Trip Planned Channel Choice Bonding with family, friends

Motivators
Social Need/s: Enjoy time with family, friends Share good fortune Emotive Need: Win admiration Status / badge Self-reward; pampering Satisfy Craving

Channels that Satisfy Needs Lower class Casual dining FSR QSR Upper class Fine dining FSR Specialty outlets FSR (fine dining) FSR (fine dining) Specialty outlets
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FOOD BITES 2011

Celebrate an occasion

Impress business associate

Copyright 2010 The Nielsen Company. Confidential and proprietary.

Roles of the Different Channel Types

QSR: Class Equalizer

Specialty Outlets: Badge / Indulgence

FSR: Indulgence

Carinderia: Quick and Cheap

Convenience Stores: Speed and Access

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Project NAME

QSRs: The Class Equalizer Lower Class


Satisfying primarily functional needs: quick, affordable and accessible. Offering products at a wide price range make them within reach of most.
Perceptions Teens Lower class
Affordable Accessible Pang masa Fast service Crowded Affordable Pang-masa Crowded Quick service

Behavior
Eats at QSR almost everyday Spends less than P100 per meal Buys mostly value meals Buys mostly value meals Spends around P100 Eats at QSR almost everyday QSR is common eating place on weekdays Eats at QSR on weekends with family or kids

Motivations
Affordability and accessibility are primary triggers TV ads and promos influence choice Affordability is the primary motivation Promos influence choice

Young Adults

Lower class

Older Adults

Lower class

Liked by kids Affordable, pang masa For the whole family Fast service Crowded

QSR is preferred by family Affordability is a strong motivation

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FOOD BITES 2011

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QSRs: The Class Equalizer Upper Class


Satisfy primarily functional needs: quick, affordable and accessible. Safe, auto-pilot, go-to food when no other choice.
Perceptions Teens Upper class
Quick, selfservice Crowded Pang masa Affordable Staple food of busy people Unhealthy Affordable Liked by kids Accessible Fast service Affordable Most advertised Liked by kids Crowded

Behavior
Spends P50100/meal Buys mostly value meals Visits almost everyday Buys mostly value meals Spends less than P100 Visits almost everyday Visits almost everyday Spends P50-100 Visited when with kids

Motivations
Affordability and accessibility Promos (discounts) are good come-ons

Young Adults

Upper class

Affordability and accessibility Go-to place when no other choice; a safe choice

Older Adults

Upper class

Affordability and accessibility For the whole family; preferred by kids; satisfies bonding needs
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FOOD BITES 2011

What QSRs need to continue doing


QSRs need to enhance its product offerings. Service (faster ordering, delivery) and ambiance (cleanliness, seating) should also be improved.
Lower Class
Offer fast service Affordable price; Have budget meals Many branches in strategic locations (near terminals, schools, etc.) Have variety of food offerings Clean and comfortable surroundings Good customer service; helpful, nice crew Can accommodate many people; adequate space Offers promos, discounts, freebies High media presence through TV ads

Upper Class
Offer fast service Affordable prices & value meals Good quality of food; delicious, freshly cooked Accessible location, with parking Have variety of food offerings Clean and comfortable surroundings Good customer service; helpful, nice crew Can accommodate many people; adequate space Offers promos, discounts, freebies With drive-thru

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FOOD BITES 2011

FSRs: Dining as a Celebration Lower Class


For special occasions: expensive, high-class, seldom visited
Perceptions Teens Lower class
Expensive Not well-known, few branches Sosyal, Pang mayaman Delicious meals Sosyal, high class Few customers Unaffordable Full service Pang mayaman Expensive (P200/head) Full service Fine dining Big orders

Behavior
Visited only on special occasions or when treated by someone else

Motivations
Celebrating special occasions is the primary motivation

Young Adults

Lower class

Visited on special occasions (date, meetings), business meetings or company events Visited on special occasions, when treated by someone else, or during company events

Celebrating special occasions To impress a client

Older Adults

Lower class

Celebrating special occasions Part of office functions

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FOOD BITES 2011

FSRs: Dining as an Experience Upper Class


Fining dining is for pampering; casual dining is for regular eating out
Perceptions Teens Upper class
Fine Dining: Expensive, luxury, sosyal, peaceful, relaxing ambiance, special celebrations Casual Dining: Value for money, regular eating out place Good service

Behavior
Only visited with parents/family Visited for family events Weekends or 1-2x a month

Motivations
Spend time with family Celebrate special occasions Casual dining: hangout place, regular eating out

Young Adults

Upper class

Fine Dining: Expensive, luxury, relaxation, special occasions Casual Dining: Regular eating out place, family day, big serving, value for money Fine Dining: Sosyal, High-end, Expensive, special events Casual Dining: commonly visited, value for money, family day

Celebrating special events Visited on pay days or weekends Meet with friends or clients

For pampering oneself; relieve stress To impress Spend time with family/friends Casual dining: regular eating out

Older Adults

Upper class

Celebrating special events Visited on pay days or weekends family Meet with friends or clients

Celebrate special events Spend time with family/friends Casual dining: regular eating out 28

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FOOD BITES 2011

What FSRs need to continue doing


Because FSRs put a price premium, customers expect more by way of the total dining experience.
Lower Class
Affordable food offerings (group meals or value meals) Excellent quality of food/drinks Wide variety of food offerings Excellent customer service Nice, relaxing ambiance Good location (preferably in malls) Reasonable waiting time Good word of mouth Media presence (TV ads, newspapers, etc.)

Upper Class
Good value for money; must be worth your money Excellent quality of food/drinks Offers a wide variety of foods unique, specialty food and experience (themed restaurants) Excellent customer service; can accommodate small requests Nice, relaxing ambiance Ample parking space Good location Reasonable waiting time Good word of mouth Free Wi-Fi
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FOOD BITES 2011

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CVS: Quick and affordable Lower Class


Affordable, quick food offerings for busy people
Perceptions Teens Lower class
24 hours, convenient, accessible Wide variety of products Affordable 24 hours, convenient, accessible Wide variety of products Affordable 24 hours, accessible Pang-tawid gutom Pang-masa Affordable Wide variety of products

Behavior
Visits almost everyday Spends P50-100 Hang-out place

Motivations
Affordability and accessibility Good place to hand out with friends

Young Adults

Lower class

Visits almost everyday Hang-out place, meeting place

Affordability, accessibility (proximity) and convenience, especially for night shift workers Accessibility (many branches) Affordable offerings

Older Adults

Lower class

Visits almost everyday Spends P20-70

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FOOD BITES 2011

CVS: Accessible and mobile Upper Class


Convenient and accessible for mobile, busy lifestyle
Perceptions Teens Upper class
24 hours For people in a hurry Accessible Pang tawid gutom 24 hours, convenient Accessible Affordable 24 hours Convenient Accessible Affordable

Behavior
Spends at least P20 Visited almost everyday

Motivations
Quick Affordable Accessible (near schools)

Young Adults

Upper class

Frequently visited (especially when CVS is near the office or when working on night shift) Occasionally visited

Quick Affordable Accessible

Older Adults

Upper class

Emergencies Affordable Accessible

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FOOD BITES 2011

What Convenience Stores need to continue doing


Convenience stores are ideal for quick meals, especially late at night. Its affordability and accessibility also attract consumers.
Lower Class
24 hours Affordable food/drink items Many food and beverage items sold (snacks, rice meals, packaged food, bottled drinks, etc.) Very fast service; suitable for highly mobile people Has area for dining, hanging out (tambayan) Food can be reheated (i.e. microwavable) Accessible; many branches in strategic locations

Upper Class
24 hours Affordable food/drink items Many food and beverage items sold (snacks, rice meals, packaged food, bottled drinks, etc.) Very fast service; suitable for highly mobile people Has area for dining, hanging out Food can be reheated (i.e. microwavable) Accessible; many branches in strategic locations Ideal as a pit stop, while travelling, especially among the upper class.

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FOOD BITES 2011

Food Stalls/Kiosks: Cheap to-go Lower Class


Affordable food and drinks on-the-go, from terminals to malls
Perceptions Teens Lower class
Accessible, strategic locations Affordable pang masa Many food offerings

Behavior
Spends P20-50 Buys on impulse (passed by the store, onset of hunger)

Motivations
Affordability Impulse purchase (craving, sudden hunger) For pasalubong Eaten when in a hurry Affordability Accessibility Impulse purchase Affordability Accessibility Impulse purchase

Young Adults

Lower class

Quick food, easy to eat Very accessible Affordable Pang tawid gutom Pang masa Very accessible Filipino food, street foods Affordable Pang tawid gutom

Quick meals Takeout food Spends P30-P45

Older Adults

Lower class

Visits frequently (5x a week) Spends P15-25

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FOOD BITES 2011

Food Stalls/Kiosks: Quick food trips Upper Class


Young consumers see it as a novelty; older consumers mostly purchase on impulse
Perceptions Teens Upper class
Affordable Quick meals, street foods Exotic, novelty

Behavior
Buys on impulse Eats frequently when on a food trip or with friends Spends less than P100 Buys on impulse (onset of hunger) Buys occasionally Spends P20-60 Buys on impulse (passed by the stall) 2x a month

Motivations
Novelty of exotic food (street foods) Food tripping Affordability Craving Sudden craving Affordability Accessibility Sudden craving Affordability Accessibility

Young Adults

Upper class

Affordable Quick meals Accessibility (mallbased stalls) Affordable For franchising Quick foods Standing, no dining area Strategic locations Pang tawid gutom

Older Adults

Upper class

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FOOD BITES 2011

What Food Stalls/Kiosks need to continue doing


Affordability is the primary need of lower class; while upper class are concerned about food cleanliness and safety.
Lower Class
Affordable food/drink items important for the lower class Clean food, equipment and staff Has area for quick dining Wide variety of food offerings has rice meals and snacks Very fast service; suitable for highly mobile people Accessible; many branches in strategic locations

Upper Class
Clean food, equipment and staff important for the upper classes Has area for quick dining Wide variety of food offerings (street foods, exotic, etc.) Very fast service; suitable for highly mobile people Has orderly queue for customers to help in fast ordering and receiving of food/drinks Accessible; many branches in strategic locations prefers mall-based carts/kiosks

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FOOD BITES 2011

Specialty Store: Classy hangout Lower Class


Expensive and classy; a place to hang-out and be seen (i.e. Starbucks)
Perceptions Teens Lower class
For desserts and coffee, not filling Expensive Relaxing, quiet, comfortable Hangout place Expensive Sweets, donuts and coffee Located only in malls Luxury hangout, Sosyal Relaxing ambiance For the rich or those pretending to be rich For call center agents

Behavior
Seldom visited Spends at least P130 (Starbucks single order)

Motivations
Hanging out with friends Aspirational place Place to be seen Wi-Fi access Cravings For gifting Hanging out with friends/office mates Luxury A place to be seen For relaxation

Young Adults

Lower class

Seldom visited Payday purchase

Older Adults

Lower class

Seldom visited Coffee is more than P100

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FOOD BITES 2011

Specialty Stores: Satisfy cravings Upper Class


Visited to satisfy cravings; regular chill out place for teens and young adults
Perceptions Behavior Teens Upper class
Peaceful, nice ambience Study and hangout place Free Wi-Fi Coffee, desserts, sandwich Coffee shops Pastries, Desserts, Ice Cream, Frozen Yogurt alternative to coffee Coffee shops Pass time, hang out place Meeting place Free Wi-Fi Spends P130 above Frequently visited (almost everyday or 2-3x a week)

Motivations

Chill out or hang out with friends Studying

Young Adults

Upper class

Coffee shop Spends at least P135; Visited almost everyday or 2-3x a week Ice cream, frozen yogurt cravings, treats Frequently visited (4-5x, 2-3x a week) Spends at least P200

Relaxation Cravings Treating oneself Stress reliever

Older Adults

Upper class

Hanging out, relaxation Meet friends or clients Craving for coffee


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FOOD BITES 2011

What Specialty Stores need to continue doing


Pleasant ambiance and unique product offerings are main selling points; Aspirational value of the store, especially for lower SEC
Lower Class
Aspirational place to be seen

Upper Class
Good value for money; must be worth your money Has special food/drink items which the place is known for Excellent quality of food/drinks Excellent customer service Nice, relaxing ambiance good for studying, working, meeting clients Good for hanging out/chilling out Ample parking space Good location Free Wi-Fi
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Has special food/drink items which the place is known for Excellent quality of food/drinks Excellent customer service Nice, relaxing ambiance Good for hanging out, meeting friends Good location (preferably in malls)

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FOOD BITES 2011

Carinderia: Affordable and filling Lower Class


Affordable yet filling food offerings; part of regular, daily meals
Perceptions Teens Lower class
Very affordable Accessible (near the school) Filling Lutong bahay Very affordable Accessible Various food offerings (Parespares, tapsilugan) Pang-masa Lutong bahay Very affordable and filling Accessible

Behavior
Spends P20-50 Frequently visited (alternate with QSRs, CVS)

Motivations
Affordable and filling Proximity to school

Young Adults

Lower class

Spends P30-45 Frequently visited (alternate with QSRs, CVS)

Affordable and filling Accessibility

Older Adults

Lower class

Frequently visited Spends P15-25

Affordable and filling Accessibility

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FOOD BITES 2011

Carinderia: Upper Class


For teens, carinderia is exotic and provides novelty; Older consumers visit occasionally (when there is no other choice) but are concerned about cleanliness
Perceptions Teens Upper class
Affordable Quick Lutong bahay Exotic, novelty

Behavior
Spends less than P100 Almost everyday, alternative to QSR, CVS

Motivations
Affordability Visited when no allowance Want to try something exotic Food tripping Affordability Proximity to office

Young Adults

Upper class

Affordable Lutong bahay May be unclean

Occasionally visited Alternative to QSR, CVS when no money Seldom visited

Older Adults

Upper class

Affordable Lutong bahay May be unclean

Affordability Can be for take out No choice (e.g. provinces)


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FOOD BITES 2011

What Carinderias need to continue doing


Affordability and accessibility is the main attraction; for upper class cleanliness is a major concern
Lower Class
Very affordable food/drink items Combo meals (rice, viand, drink, free soup) Clean food, equipment and staff) Has area for quick dining Filipino food (lutong bahay) Fast service Strategic locations transportation terminals, near offices

Upper Class
Very affordable food/drink items Clean food, equipment and staff) very important for upper class, especially older consumers Has area for quick dining Filipino food (lutong bahay) Fast service Accessibility close proximity to offices; alternative for daily dining in QSR and CVS

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FOOD BITES 2011

Class Matters
Upper class consumers have wallets that allow for a more sophisticated palate; the lower classs food adventures are limited by their budget, thus, they opt for channels that serve less expensive food. Lower Class
Budget not always a consideration: willing to pay a higher price for quality and the total dining experience more demanding and discerning Put more value on food quality, ambiance, comfort, and customer service Seek variety and uniqueness in their dining out experiences More awareness and experience with different channels, outlets and cuisines Better media experience (TV, internet, magazines, etc.) and more exposure to various influences (travel, books, etc.) Want convenient services due to busy lifestyle (delivery, drive thru, takeout)

Upper Class
Budget is main consideration; food choice adjusted to fit the budget Accessibility likewise important, i.e., will not go out of their way for a food experience prefer nearby outlets to cut on transportation cost and time Willing to forego dining experience (i.e., food quality, ambiance, comfort and customer service) for affordability Prefer to stick to outlets that they are used to; will only try something new only if it fits the budget Prefer quick meals and food on the go due to cheap price and mobile lifestyle

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FOOD BITES 2011

Age Matters
Working adults have more channel experience and options; Younger consumers prefer QSRs due to affordability and accessibility
17-21 y/o (College Students) Outlets of Choice QSRs are go to outlet driven by affordability and accessibility Upper SEC students visit high-end establishments but only when with parents or older family members Limited budget = limited food channel choice Eating out is a social activity. Decision on food and channel choice is highly influenced by peers Foods on the go (QSR, CVS, food stalls) appeal because of their busy schedule. Willing to try new outlets; depends on price and budget 22-30 y/o (Working Adults) QSRs are preferred when on a budget; FSRs are visited on paydays Office locations and type of work highly influence food and channel choices Pay Check = More choices and opportunities to try various food channels Dining out is a social activity. Also a way to reward oneself and to de-stress/ relax. Foods on the go (QSR, CVS, food stalls) appeal because of their busy schedule. Open to trying new food types and outlets 31-45 y/o (Working Adults) QSRs are preferred when on a budget; FSRs are visited on paydays For married adults, food choice is different when alone and when with children (QSR when with kids) Pay Check = More choices and opportunities to try various food channels For married adults, eating out is a social & family activity Also a form of self-reward and relaxation Seek more quality in their food choices; health concerns also arise due to age Open to trying new food types and outlets
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Budget considerations Dimensions of eating out

Food choices

Trial of food types and channels

FOOD BITES 2011

Affordability vs. Value for money


Consumers from lower income segments look for affordability (price point parity); higher income consumers seek value for money (getting what one pays for)
Lower Class: Affordable food offerings that benefit QSRs, CVS and food stalls/kiosks
QSRs, convenience stores and food stalls/kiosks meet the need for affordable, quick meals Price ranges from Php 50-100. This should be a complete set: rice, viand, and drink. Reasonably priced snacks/merienda range from Php 10-40.

Upper Class: Value for money regular forays into casual dining FSRs
Expect to receive the right quality and quantity, a satisfying dining experience, in exchange for a premium price Middle tier priced food establishments, e.g., casual dining restaurants are a popular choice for a more comfortable, better dining without breaking ones wallet

Kung ikaw tipid ka, sa fast food ka na lang. C2D, 22-30 y/o

Dapat tama yung service and foodworth ng money mo makukuha mo. BC1, 17-21 y/o
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Copyright 2010 The Nielsen Company. Confidential and proprietary.

FOOD BITES 2011

The effect of channel promo activities


Promos serve as Retention and Activation devices.
Discount coupon is a popular promo for QSRs
Coupons by Mc Donalds and Jollibee continue to be popular Influences outlet and food decisions Food items with big discounts tend to be purchased more often than non-discounted offerings. Discount coupons are particularly attractive to students and budget-conscious consumers.

Unlimited/Eat all you can promos encourage consumers to check out an outlet
The unlimited/bottomless/eat all you can trend attracts consumers Formula worked successfully for Mang Inasal with its unlimited rice and Maxs during its chicken-all-you-can-eat anniversary promo A similar offering was also made by Tokyo, Tokyo in the past

Yung mga promos nila, nagbibigay silang coupon para ma induce kang ubusin yun. BC1, 17-21 y/o

Mang Inasal, unlimited rice malaki naman ang ulam affordable na din. Not bad. C2D, 17-21 y/o
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Copyright 2010 The Nielsen Company. Confidential and proprietary.

FOOD BITES 2011

Consumer Behavior: Two Points of View

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FOOD BITES 2011

Food and Dining Out is part of the current lifestyle


More than merely satisfying ones hunger, eating out has become an experience.
Consumers Say
Dining as self-reward and celebration of special moments Budget remains a major consideration especially among the middle and lower classes BUT they consider dining out an affordable luxury. Occasionally splurge to treat themselves or their families to a meal outside of their usual budget range. Nag-tra-trabaho tayo. Ano ba yung ginagamit natin mag-trabaho di ba yung katawan? So once in a while, treat mo ang sarili mo. C2D, 31-45 y/o Food tripping and foodies Those who can afford can indulge their taste buds and have turned into foodies. They are more sophisticated and adventurous and appreciate good cuisine and the over-all dining experience. Pagdating sa pagkain, parang yun na ang magiging vice kaysa yung mga drugs ganyan. Parang food trip na lang kami. BC1, 17-21 y/o
Copyright 2010 The Nielsen Company. Confidential and proprietary.

Experts Say
Dining out is the cheapest form of luxury For many, dining out is the cheapest form of luxury. They will occasionally treat themselves to expensive meals as a reward for a job well done or to celebrate special moments with family and friends. Even middle income individuals are willing to spend on quality food. The idea being you know, you may not be able to afford a Mercedes Benz but you can afford a P3,000 dinner once a year. Traveling and exposure to other cultures influence consumers to seek more authenticity in their dining experience As more and more people travel, the benchmark for themed dining out establishments is now based on ones personal experience of the culture and food of the country from which the outlet is based on. Every year people are getting more and more well-travelled and I see that in their expectations.

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FOOD BITES 2011

Social aspect of eating influences choice


Eating continues to be a communal activity among Filipinos. Outlet choice is a group choice. Some outlets are visited not only for their food but also because they are a place for hanging out.
Consumers Say
Outlet choice depends on companions
Kapag ka family sa restaurant, kapag ka barkada resto-bar. Kung friends sa resto-bar sabay sigaw-sigaw dun. Kapag family behave ka. (C2D, 22-30 y/o) It depends on who you are with. (BC1, 22-30 y/o)

Experts Say
Dining out is a shared experience
Its a social thing. Meaning, you go there and you share, you are sitting there in a table and eating yogurt and young people look for a shared experienced. So that is typical in young people. Look at the Gelato stalls coming up but it is not the Gelato that they are for. It is the ambience. Its the tables where you can sit and talk. Basta young market its barkada oriented.

Democratic selection: majority has a say in final choice


Kapag may kasama, majority wins. (BC1, 3145) y/o) Minsan kung saan na lang ang gusto ng friends mo. (C2D, 17-21)

Filipinos prefer to eat in groups


In Philippine society, the more communal the experience in a restaurant the more inviting it is. We like the family style servings. Filipino dining is still very much a group experience except maybe during Valentines. / So the restaurants that are more successful are those that have menus or interiors that cater to that kind of market.
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FOOD BITES 2011

Eating = Hanging out / Gimik


Sa resto bar may mga friends ka, pag gabi diretso na dun, gimik na. (C2D, 22-30 y/o) (Food outlets) Favorite hang out ng mga students malapit sa school. (BC1. 17-21 y/o)
Copyright 2010 The Nielsen Company. Confidential and proprietary.

Quick and Fast is the order of the day


However, busy lifestyles and the constant need to be on-the-go tip the scales in favor of quick meals (i.e. meals at QSR, convenience stores, food stalls), especially on week-days.
Consumers Say
Busy lifestyle: Always on the go/in a hurry; little patience
Busy na din kasi mga tao. Hindi ka na uupo. Walang service, walang lamesa. (BC1, 31-45 y/o) Fast food pang busy days. (BC1, 22-30 y/o) Kapag nagmamadali ka sa oras mo, pag mahaba ang pila, lilipat sa ibang kainan. (C2D, 31-45 y/o)

Experts Say
Busy and fast-paced lifestyles are changing eating habits; many consumers turn to quick, convenient foods for their increasingly mobile life
People are on the go. More and more, mas nagiging mobile sila. Gusto nila yung madaling dalhin na pagkain, quick bites. Yung mga food na madaling i-take out. Mas nakikita ko madaling mag emerge. Convenience stores kasi yung mga tao nag mamadali din. They dont have time to cook. So dadaan ka ng convenience store. Yung mga pre-heated lang sa bowl, especially sa 7Eleven.

Limited time to eat make hand-held meals appealing


Master Siomai, pag nagmamadali ka papuntang office habang naglalakad, kumakain ka na. (C2D, 22-30 y/o)

The nearer, the better


Kung ano yung mas malapit sa iyo, accessibility ng lugar para makabalik ka agad sa office. (BC1, 31-45 y/o)
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FOOD BITES 2011

Development of more adventurous palates


Consumers do not limit themselves to the familiar; trying the new and exotic is becoming more acceptable.
Consumers Say
Willing to try different foods/drinks
In general, pretty much willing to try everything adaptable. (BC1, 22-30 y/o) / Depende kung ano yung bago nila at saka kung afford mo siya, why not? (C2D, 22-30 y/o)

Experts Say
Media, internet, and traveling are creating more awareness and influencing consumers to be more adventurous with their food and channel choices.
People are looking for choices. They are more travelled, they are more sophisticated, they are very wired. So they see whats on the internet. They do blogs. They read reviews on travel websites. There is also a lot of travel shows on TV so people are more aware of whats out there. I would say that the level of adventure has increased. I think naging mas adventurous ang Filipino in terms of eating. They are more open to different cuisines. Kasi more people can travel.
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FOOD BITES 2011

Novelty arouses curiosity


Kung bago sa paningin mo ma-cha challenge ka kung ano ba ang lasa nito. (C2D, 22-30 y/o) / Kung hindi sya usual na pagkain, talagang titikman. (BC1, 17-31 y/o)

Want to be in with the trends


Hindi ka makaka comment sa food na iyon kung hindi mo titikman. (C2D, 31-45 y/o) / Ginagaya ko kapag ka nakakakita ako ng ganung food. (C2D, 31-45 y/o)

Personal and vicarious experience exposes diners to other cuisine


Like in Malaysia the chili crab was very delicious and spicy. (BC1, 22-30 y/o) / Meron na din silang napapalabas sa TV, tulad ng Asian Food Channel, yung mga tungkol sa chef. Medyo na orient na din tayo dun. Sumusubok na din. (BC1, 31-45 y/o)
Copyright 2010 The Nielsen Company. Confidential and proprietary.

Maintaining Limits
Not all new and exotic food offerings are acceptable. Foreign cuisine is adjusted to suit the Filipino taste.
Consumers Say
No to the extreme
Basta yung hindi siya yung sobrang anghang at hindi siya yung sobrang tamis. (BC1, 17-21 y/o) Will try, wag lang exotic like snakes. Wag naman ganun. (BC1, 22-30 y/o) Hindi masyadong maalat, hindi masyadong sweet. Ganun ang gusto kung panlasa. (BC1, 31-45 y/o) 50/50 depende sa pagkain. Kasi kapag may ayaw ako, hindi. (C2D, 31-45 y/o)

Experts Say
Restaurant owners adjust to the Filipino palate
In general, meron pa din yung comfort level. Katulad yung Orchard Road nung nagbukas siya, yung food nila medyo close sa Singaporean Food. Pero lately nung kumain ulit ako parang nag-tame down yung flavor nila. Foreign foods are Filipinized. I dont know if its because of experimentation na it didnt work when they first came out with it, so they Filipinized. Also because of the lack of ingredients. So they settle on what is fresh on our market.

Trial depends on budget


Kung afford mo siya, why not? (C2D, 22-30 y/o) Kung ano yung affordable, mas bibilihin. (BC1, 31-45 y/o) Depende sa budget din. (BC1, 17-21)

The upper class are more open and sophisticated


The higher they go up the social ladder, the more sophisticated their taste buds become. They are able to enjoy unusual cuisine, or less savory, or less oily foods.
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Copyright 2010 The Nielsen Company. Confidential and proprietary.

Media as Influencers
Increasing presence of food-related content in the media influences dining out trends and appreciation for food
Consumers Say
Print publications
If they were sold cheaper oo. Kasi the problem is the mags are sold higher. (BC1. 17-21 y/o) Sa dyaryo po nilagay naniniwala ako. (C2D, 17-21 y/o)

Experts Say
Food-related publications
Magazines wont feature you if youre not worth featuring. It is more expensive in the newspaper so they wont waste their space for something that is not worth writing about.

Food features on TV
Sa Mel and Joey pinapakita nila yung mga masarap kainan. (C2D, 17-21 y/o) Meron na din mga napapalabas sa TV yung mga tungkol sa chef. Medyo na orient na din tayo dun. Sumusubok na din. (BC1, 31-45 y/o)

Food-related TV shows
Media, when they read it, they see it on TV, media plays a big role in making them try.

Celebrity Chefs
Kung may resto si Chef ganito, yes will go to that place. (BC1, 31-45 y/o) May influence sila kasi chef na ang ginagamit as commercial model. (C2D, 31-45 y/o)

Celebrity Chefs
When they see your face, they will remember your restaurant. It helps. I think more respectable. Being a chef is not as lowly. People dont look down on it as much as they did when I first started. 52

Copyright 2010 The Nielsen Company. Confidential and proprietary.

FOOD BITES 2011

Rising influence of internet on food choices


Young professionals from the upper class take their interest in food online: the internet and social networks have become important references of where to go and what to try.
Consumers Say
Check out online reviews
Sa internet kung ano yung may pinakamagandang ratings tapos reviews. (BC1, 31-45 y/o) Munch Punch parang list of restaurants tapos may price and may ratings. (BC1, 31-45 y/o)

Experts Say
Read food blogs
Certain people follow certain blogs. Probably theyve had experience visiting a few of the places that blogger went to and most of the time okay sila. Its all case to case basis.

Read food blogs / forums


We will believe more on bloggers kasi costumer sila tapos individual perspective nila yun sa food na natikman nila. So kapag ka masarap sa kanila, masarap talaga. (BC1, 22-30 y/o) Sometimes you can also go to Pinoy exchange. Madami din naman yung mga forums. (BC1, 2230 y/o)

Use social media


A large amount of whats on Facebook is telling people where they ate and where to go. And that also increases the appetite for trying new things.

Take advantage of online deals


Internet deals like Cash Pinoy, coupons, we did that and it was fantastic. Its really good but if you want that, you gotta get into that right away. Otherwise, it wont be special anymore.

Use social media


Facebook meron din yung nag po-post sila na dito masarap kumain. Dun nga namin nalaman yung Central. (BC1, 31-45 y/o)

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FOOD BITES 2011

Observations on the Competitive Landscape

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FOOD BITES 2011

Sources of information on food and outlets


TV ads are important BUT buzz cannot be over-looked. Young professionals from higher SECs show increasing use of internet and social media for information on food
Sa commercial kapag nakita mong masarap. (C2D, 22-30 y/o) Malaking influence din yung advertisements sa TV. (BC1, 31-45 y/o) Minsan sinasabi try mo ito, masarap. So parang nakaka-enganyo. (C2D. 17-21 y/o) Minsan thru friends. (BC1, 31-45 y/o) Mas kapani-paniwala ang friends. (BC1, 17-21 y/o) Blogs, thats where we see the recent trends. (BC1, 22-30 y/o) Facebook din may nagpo-post sila na dito masarap kumain. (BC1, 31-45 y/o)

Advertisements

Word of mouth

Internet, social media

Yung sa labas ng store may mga naka-post .Yung mga may words na nakapost mas bigger at mas better. Yung mga nakapost dun sa labas nahahayok akong bilhin. (C2D, 17-21 y/o)

Sa Cosmo magazine, may nakikita kang food re-recommend nila, o punta ka dyan bago yan. (BC1, 31-45 y/o)

Store merchandising materials


Copyright 2010 The Nielsen Company. Confidential and proprietary.

Print publications

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FOOD BITES 2011

Key players by channel type


Number of outlets, popularity, longevity, reputation in the market, and good reviews are the basis for identifying key players.
Consumers Say
QSR Jollibee Mc Donalds KFC Mang Inasal Chow King Greenwich FSR* Maxs Pizza Hut Bistro Group (Fridays, Italiannis) Orange Group (Dencios, Pancake House) Gerrys Grill Food stalls/kiosks Dunkin Donuts Master Siomai Hong Kong Style Noodles Shawarma QSR Jollibee McDonalds KFC Chowking Greenwich Mang Inasal

Experts Say
FSR: Casual dining Aristocrat Bistro Group (Italiannis, Fridays) Maxs Barrio Fiesta Red Crab Group Via Mare

Convenience stores 7-Eleven Mini Stop

FSR: Fine dining Antonios Lolo Dads Le Souffl The Goose Station Aubegrine Mesa Convenience stores 7-Eleven Mini Stop

Specialty Stores Coffee shops: Starbucks Sandwiches: Subway, Sandwich Guy Desserts: Gelato stores, Yogurt shops

Specialty food shops Starbucks Figaro Coffee Bean and Tea Leaf Krispy Kreme

*More popular FSRs are mostly casual dining places rather than fine dining channels

*FSRs are divided into casual dining and fine dining.


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Copyright 2010 The Nielsen Company. Confidential and proprietary.

Image of Top Brands (1)


In terms of size, popularity, and influence QSRs are top-of-mind. For FSRs, longevity in the market is a major indicator of success.
Consumers Say
Biggest
Jollibee at McDo dahil sa dami ng branches at tao na nagpupunta. (C2D, 22-30 y/o) Mc Do and Jollibee biggest sa branches. (BC1, 1721 y/o)

Experts Say
Biggest
I think wala naman tatalo sa Jollibee. For me, the old ones for example Aristocrat, Marios, Alfredos. For me, those are parang yun ang mga matagal na sa market so, tingin ko sila pa rin ang hinahanap ng mga tao.

Most Popular
Jollibee parang mayaman at mahirap kilala yun. (C2D, 17-21 y/o) Jollibee, Mc Do. Kasi sa advertisement, and everybody knows it. (BC1, 31-45 y/o) Sa resto, Maxs kasi mas affordable. (BC1, 22-30 y/o)

Most Popular
Quick service pa rin. McDo and Jollibee pa din. Hindi pa din mawawala yung usual. Hit pa din mga KFC, Jollibee and all.

Most Influential
Jollibee, the name itself and yung tatak sa media. Makita lang ng bata, punta na agad yun. (Industry Expert) Jollibee kasi ang dami nilang commercial. (BC1, 3145 y/o)

Most Influential
Jollibee, Chow King, Greenwich, KFC, McDo, yan ang mga strong brands. Jollibee the name itself and yung tatak sa media makita lang ng bata punta na agad yun.

Fast Rising
Fast rising restaurants are owned by the chef. Its the name, the personality behind the restaurant. Sa ngayon marami, yung mga semi fine-dining to finedining restaurant sa tingin ko mag bo-boom pa yun.

Fast Rising
Yung Mang Inasal kasi dumadami na yung store nila eh at saka laging puntahan. (C2D, 31-45 y/o) Mang Inasal, kasi madami na sila. (BC1, 31-45 y/o)
Copyright 2010 The Nielsen Company. Confidential and proprietary.

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FOOD BITES 2011

Image of Top Brands (2)


JFCs stronghold on the dining out industry is evident in its image among the consumers.
Jollibee is described as the BIGGEST, MOST POPULAR and MOST INFLUENTIAL QSR, although McDonalds does not lag far behind
Jollibee at McDo dahil sa dami ng branches at tao na nagpupunta. (C2D, 22-30 y/o) / Jollibee parang mayaman at mahirap kilala yun. (C2D, 17-21 y/o) / Jollibee, Mc Do. Kasi sa advertisement, and everybody knows it. (BC1, 31-45 y/o)

Jollibee McDonalds Mang Inasal Mini Stop Popularity Scale Maxs

7-Eleven Starbucks

Despite the proliferation of imported brands (Mini-Stop, 7-Eleven and Starbucks), the favorite QSRs and FSRs are still home-grown. Upstarts like Mang Inasal have entered into the select circle.
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Copyright 2010 The Nielsen Company. Confidential and proprietary.

FOOD BITES 2011

Popular dining hotspots, food enclaves


Mall-based establishments remain very popular but food outlets in nontraditional locations have their share of patrons
Consumers Say Experts Say

Timog, Tomas Morato QC

Metro Walk

Seaside MOA

Glorietta

Greenbelt

The Fort, Global City

The Fort, Global City

Resorts World

Burgos Circle

Ayala Triangle

The Collective, Malugay Makati

Jupiter Makati

Banchetto Ortigas

Ortigas Home Depot

Timog, Tomas Morato

BF Homes, Paranaque

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Copyright 2010 The Nielsen Company. Confidential and proprietary.

FOOD BITES 2011

Outlets to Watch (1)


Consumers and experts identify some outlets they think will grow in the future. These are based on word of mouth and their own experience.
Consumers Say
Andoks
Ang Andoks resto na siya. May dining, may inuman. Open 24 hours. (BC1, 31-45 y/o) Fast food na may inuman. Parang grill bar siya. Tapos 24 hours din. (C2D, 31-45)

Experts Say
Chic-Boy
The next, Mang Inasal, I know its gonna be Chic-Boy.

Chicken Charlie Chic-Boy


Chicken and baboy. Its like Mang Inasal. It will also grow. (BC1, 22-30 y/o) May Cebu lechon liempo dun. (BC1, 2230 y/o) Yung mga Chicken Charlie, mga ganong kainan. Mga wings, spicy wings. Dumadami rin siya

Bonchon Chicken
Ngayon pati yung chicken, Bonchon Chicken.

Sinangag Express
Unique ang pangalan. Tara SEX tayo. (BC1, 17-21 y/o) Tapsilog, yung pagkain ng lasing. Saka pinupuntahan ng 24 hours, mga road trip. (BC1, 17-21 y/o)

Crystal Jade
Pag pumunta ka doon wait ka ng 2 hours. Mag bo-boom pa din yung mga katulad ng Crystal Jade sa Greenbelt. 60

Copyright 2010 The Nielsen Company. Confidential and proprietary.

FOOD BITES 2011

Outlets to Watch (2)


Hybrid QSRs/FSRs offering different, specialized food items and specialty tea shops are also predicted to rise in popularity.
Consumers Say
Central BBQ
Yung Central BBQ, tambayan na cheap ang beer and affordable yung mga cocktails. (BC1, 22-30 y/o) Central sa Makati, sumisikat na sya. (C2D, 17-21 y/o)

Experts Say
Army Navy
Nandiyan yung Army Navy Burger. Kalaban na sya ng Brothers Burger.

Charlies Grind and Grill


Sumisikat na din iyon Charlies Grill. Iyong nagsimula sa car wash tapos may mga branches na din siya.

Manong Pepes
Parang sosyal na turo-turo. May dinuguan may champorado, malinis kaysa mag carinderia ka, but air-conditioned. (BC1, 22-30 y/o) Fast food style pero ang pagkain laing at kare-kare. (C2D, 22-30 y/o)

Sandwich Guy
Sandwich guy. Lower price pero masarap. Tapos maganda yung pagka-prepare.

Serenitea
Yung Serenitea medyo high end. Sa isang ganon P140 na. More on special fine dining.
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FOOD BITES 2011

Part II: Trends in Eating out

Whats happening out there? Trends in Food Service Channels

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Copyright 2010 The Nielsen Company. Confidential and proprietary.

Food Bites 2011

Whats happening at QSRs?


Affordable meals and new product offerings are major QSR trends.
Consumers Say
Cheaper Value Meals are Popular (39ers, McSavers)
Yung 39ers sa Jollibee meron rice na yun. (C2D, 22-30 y/o) / Sa McDo yung McSavers meal. (BC1, 17-21 y/o)

Experts Say
Food innovations and new food offerings
Nag experiment sila kung ano yung mag hit. Like yung KFC Double Down. All the same material. Iniiba lang nila yung sauce. Yung Jollibee, nagkaron ng BBQ. / In the fast food thats really the case, you just have to continuously have new product or rehash products to keep them interested.

New product offerings (KFC Double Down) grab interest


KFC double down. All meat no bread. (C2D, 22-30 y/o) / Sa KFC yung nauso na chicken yung burger down. With no buns. Sandwich pero chicken, basta may up and down. (BC1, 31-45 y/o) Naglalabas sila ng mga bagong product para hindi magsawa yung mga tao. Nag-iiba sila katulad sa 39ers, bagong labas ngayon yung meat balls. (C2D, 22-30 y/o)

Ambiance setting; more cozy interiors


Pansin ko sa mga kahit quick service, nagkakaroon sila ng mga comfortable na area. In terms of interiors, yung chairs nila nagkakaroon ng sofa. They expect people to stop na rin. Hindi lang kain tapos alis. Sosyal na rin eh. Kahit yung sa KFC, Jollibee o Greenwich, nakita ko may mga ganon na rin sila.

Price discounts (Coupons)


Nagbibigay ng mga discounts karaniwan sa mga Jollibee at McDo. (C2D, 22-30 y/o) / Sa McDo, may discount cards and discount coupons. (BC1, 17-21 y/o) / Yung mga promos nila, nagbibigay silang coupon para ma induce kang ubusin yun. (BC1, 17-21 y/o)

The Mang Inasal Phenomenon


Now , I think people are just in awe with Mang Inasal. I shouldve thought about that, it was a great idea but I dont think I couldve thought of that.

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Copyright 2010 The Nielsen Company. Confidential and proprietary.

FOOD BITES 2011

Whats happening at FSRs?


Focus on the dining experience (i.e. creating the right ambience) and food quality; giving rewards to customers through tie-ups with other badge products are also popular.
Consumers Say
Tie ups with credit cards or banks work
If you are a card holder of Citibank, may libre. Like sa Chilis or Fridays, meron silang libreng pasta for the groups. (BC1, 31-45 y/o)

Experts Say
Chef-owned restaurants
Mga places na specialize ng mga chef talaga. Katulad ng Antonios sa Tagaytay. / Fast rising restaurant are owned by the chef. Its nice to put your name, the personality behind the restaurant. I think its the number 1 selling. Although the people come for food, but still its the personality behind.

Themed restaurants provide unique dining experience


May kanya kanyang theme yung restaurants. They have interesting decorations which is good for taking photos with your friends. (BC1, 22-30 y/o) / Parang meron silang common theme. Like sa Texas Road, Western theme. (BC1, 22-30 y/o)

Steaks in the menu; High-end steak houses


One thing I saw in 2009 or 2010, a lot of these highend restaurants came up with steaks and there are new steak houses.

Specialty Bars: The choice for gimmicks and hanging out


They serve different brands or kinds of beer. If you are tired of the usual San Mig Light, try Heineken. (BC1, 22-30 y/o) / Inuman ang main dyan. Puro alcohol, loud music, crowded, tambayan. (BC1, 17-21 y/o)

Increasing importance of wine in fine dining


I think the whole wine consumption has increased, which is also a sign of sophistication. So in the fine dining scene, wine has become a very important experience.

Hole-in-the-wall restaurants: out-of-theway spots


Mas dadami yung restos na tahimik lang. Yung mga wala masyadong resto, dun na lang pupunta. (BC1, 17-21 y/o)

Growing number of stand-alone Holein-the wall upscale places


Sa akin nag hit yung mga places na tago. Mga places na outside the malls. May mga kainan na hands on talaga, yung mga may-ari yung gumagawa.
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Copyright 2010 The Nielsen Company. Confidential and proprietary.

Whats happening at Convenience Stores?


Convenience stores have evolved into a food destination: accessible, ubiquitous, affordable.
Consumers Say
Living up to the idea of CONVENIENCE as defined by the busy
Pupunta ka sa convenience store pag nagmamadali kang pumasok tapos wala namang laman ang tiyan mo. (C2D, 31-45 y/o) / Makakabili ka dun ng alanganing oras. (C2D, 22-30 y/o)

Experts Say
Fast-paced lifestyle benefits convenience stores
Kasi yung mga tao nag mamadali din. They dont have time to cook na so dadaan ka ng convenience store, yung mga pre-heated lang sa bowl, especially sa 7-Eleven.

Affordable
Pasok sa budget mo pag wala ka pang sahod. (C2D, 31-45 y/o / P50 makakakain ka na din. (C2D, 17-21 y/o)

Varied and novel food ideas


7-Eleven gourmet sandwiches. Yung pagkagawa niya, di ba yung may sandwich tapos merong healthy. Kahit sa siopao hindi lang puro meat, ngayon meron na rin bangus, sisig siopao. / More on variety hindi lang usual. Pati yung mga drinks, dumadami yung katulad ng Smart-C.

Varied Offering
Convenience store part of eating places kasi they offer rice, eating location na siya kasi they have tables and rice meals and then accessible. (BC1, 3145 y/o) / May available na chicken, donut, kariman, sandwich, siopao, instant noodles, instant coffee. (C2D, 22-30 y/o)

Call center industry boosts convenience stores popularity


Convenience stores are emerging because of the people, the market from the call center establishments. You are working long hours, you have a break, so you go to the most convenient place, where you can get something that satisfies you.
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FOOD BITES 2011

Very accessible
Madaming outlets. Kahit saan accessible. (C2D, 3145 y/o) / Malapit din siya sa mga school. Parang kapag ka may school meron din ganun. (BC1, 17-21 y/o)
Copyright 2010 The Nielsen Company. Confidential and proprietary.

Whats happening with Food Carts / Kiosks?


Franchising has given birth to a new food business venture for the middle class and affordable food for the lower class.
Consumers Say
Cannot be overlooked: numerous outlets in strategic locations
Before ilan lang ang kiosk niya pero ang dami niya na ngayon. (C2D, 17-21 y/o) / Yung mga street stands parang yung sa ilalim ng LRT, MRT pagbaba mo syempre kapag ka gutom ka iyan na agad yung first choice mo makikita mo sa mga gilid-gilid. (C2D , 22-30 y/o)

Experts Say
Big hit with lower income consumers
Mga instant na mga Hong Kong noodles sa tabitabi. Hit na hit sa kanila yun, tapos yung mga scramble. Kasi super mura.

Local and Asian foods dominate food carts


Mga scramble. Bigla nagkaka-scramble. Nauso sya. Yung mga Hong Kong style, boom din siya di ba? Mga noodles. Takoy

Affordable price
Affordable price usually parang barya-barya lang. (BC1, 31-45 y/o) / Kahit kalakal boys nagpupunta dyan. Gusto kumain ng siomai. (C2D, 31-45 y/o)

Wide variety of food offerings


Siomai, squid ball, gulaman, sharks fin, kwek-kwek. (BC1, 31-45 y/o) / Ang Hong Kong Noodles may rice meal din at saka yung Master Siomai. (C2D, 31-45 y/o)

New food carts inspired by travel experiences, specifically the OFWs


Actually, it is the OFWs that are actually elevating the standards of looking for different kinds of cuisines. They are very entrepreneurial and they want to put up these restaurants and get ideas from their travels.

Quick food when in a hurry; in-between meals


Master Siomai pwedeng pag nagmamadali ka. Papuntang office habang naglalakad kumakain ka. Pwedeng baonin sa office. (C2D, 22-30 y/o)

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FOOD BITES 2011

Whats happening with Specialty food stores?


Led by coffee and dessert shops, specialty food stores are rising in number as consumers seek to satisfy social and emotive needs in these outlets as well.
Consumers Say
Enjoying special, high-quality offerings
Pumupunta yung mga tao dito kasi magaling yung blend ng coffee. (C2D, 17-21 y/o) / Sa akin na nag-tratrabaho tapos coffee addict ako. Everyday pag naubos mo na magpapakuha ka ulit. (BC1, 30-45 y/o) / Parang pang luxury mo na lang yan. (C2D, 31-45 y/0)

Experts Say
Coffee shops remain very popular not only for its coffee but also for its ambiance
Number one is you get what you pay for and you know exactly the taste of the food there or the coffee. But also because parang mobile office din iyan. Malamig ang aircon, seats are soft, the lights are dim. Parang its a relatively classy place. / Yung Starbucks, malakas pa rin siya.

Satisfying a craving
Kapag ka craving din or treat yourself. (BC1, 22-30 y/o) / Kapag nag crave ka ng sweets. (BC1, 17-21 y/o)

For relaxation / to feel better


Pag depressed. If you just broke up. (BC1, 22-30 y/o) / Siya yung relaxing place kasi tahimik na lugar. (C2D, 17-21 y/o)

Fresh, new ideas spark interest; indications of move towards healthier food / beverages
Last year ng boom talaga ang frozen yogurt. Nag labasan yung Golden Spoon, Red Mango. Talagang nag boom. Madami, White Hat, California Berry. Makita mo yung trend niya is more on healthy food. / Yung tea, dumadami na. Kumbaga of youre not drinking yung mga soda, you drinks teas
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Place to be seen
Makikipagkita ka sa mga sosyal na friends, hey lets have some coffee. (BC1. 17-21 y/o) Lalabas pa para makita ng mga kakilala na nag Starbucks siya nagkape sosyal. (C2D, 31-45 y/o)

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FOOD BITES 2011

Emerging Trends in Food and Beverage

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FOOD BITES 2011

A move toward health


Indications of emerging demand for healthier food and drink as consumers become more health conscious
Consumers Say
People will look for healthier food
A lot of people are becoming more health conscious. Marami ng mag serve ng fresh fruits and drinks and more healthy options. (BC1, 22-30 y/o) / Yogurt healthy alternative to coffee. Kung gusto mo healthy. (BC1, 31-45 y/o)

Experts Say
Filipinos are becoming more health conscious
People are starting to change to healthy living. Conscious na sila sa kinakain nila. / People get more sick nowadays. All of a sudden, they cannot have too much fatty foods. They cannot eat too much meat.

Additional nutrients / ingredients


Andun na ang vitamin na hinahanap mo for the day. (C2D, 31-45 y/o) Try to experiment on food wherein merong mga LCarnitine. Mga lycopene. (BC1, 22-30 y/o)

Greater demand for healthier (organic) food


Katulad ng yogurt healthy siya. Tapos yung ibang kainan din, they are leaning more on organic. Organic or healthy prepared yung mga food nila. Tapos more healthy dining na katulad ng mga offerings ng Kenny Rogers.

Less / light becomes more desirable


Dadami yung mga magiging conscious sa mga titinda nilang food kasi di ba yung mga calories. (BC1, 17-21 y/o) / Something low salt, low calorie, less fat, less cholesterol. (BC1, 31-45 y/o)

Even QSRs will try to meet the demand


I think well be having more fast food na healthy alternatives. Better food, healthier food na on-the-go para sa mga tao na nagmamadali.
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FOOD BITES 2011

Quick foods will continue to flourish


Diners will remain biased for food served at QSRs, convenience stores and kiosks.
Consumers Say
Fast Foods Ang burger quick meal siya, Pampalipas gutom. (C2D, 22-30 y/o) Kung wala kang time, dyan ka na lang kumain. (BC1. 31-45 y/o) Convenience Store Yung mga tipong nagmamadali kang pumasok tapos wala namang laman ang tiyan mo. (C2D, 31-45 y/o) Food Stalls Madaliang pagkain like siomai, rice in a box. Kasi busy na din mga tao. (BC1, 3145 y/o) Take Out Food Chooks to go take out siya. Whole chicken na siya. Masarap kahit walang sauce. Pang-tawid gutom. (C2D, 22-30 y/o)

Experts Say
Fast Food Fast food dahil ngayon, puro nagmamadali na, on the go ang mga tao.

Convenience Store Kasi yung mga tao nagmamadali din. They dont have time to cook so dadaan ka ng convenience store, yung mga pre-heated lang sa bowl, especially sa 7-Eleven. Quick foods Yung mga food na madaling i-take out mas nakikita ko madaling magemerge din siya. More on mobile, yung madaling dalhin na pagkain, quick bites.
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FOOD BITES 2011

Constant interest in novel food ideas


Consumers Say
Fried Ice Cream Prito siya parang liquid. Malamig ang plate pag lagay mo dun mabilis siyang mag freeze . (C2D, 17-21 y/o) Potato Twist Nasa stick yung potato pero naka-swirl sya. May flavor din. Sa mall may stall din siya.(C2D, 17-21 y/o) 2-in-1 drink and fries cup Drink siya tapos nasa ibabaw lang yung food tapos may straw lang siya iyong. (C2D, 17-21 y/o) Rice in a box Mix na ang ulam at kanin naka toppings. (C2D, 22-30 y/o)

Experts Say
Healthy Sandwich/Pasta Palagay ko mag ta-take off this year healthy sandwiches or pastas.

Krispy Kreme Burger Parang pinagpatong na glaze donut sa burger. May patty, may cheese, may egg pa ata. Matamis. Loaded with cholesterol.

Wheat Grass Juice Meron siyang ready to drink na stalls. Meron akong nakita sa may Boni. Tapos meron na din sa Glorietta pati Megamall.

Make your own/Custom food Yung make-your-own. Iba-ibang sauce, ikaw maglalagay. (BC1, 17-21 y/o) Ikaw ang bahala kung ano ang ilalagay mong toppings. (C2D, 17-21 y/o)
Copyright 2010 The Nielsen Company. Confidential and proprietary.

Frozen Yogurt Yogurt I think malakas pa din yan this year. Baka madagdagan pa nga yan.

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Cross-overs and fusion enter the mainstream


Consumers Say
Sosyal Street Food
Franchised na yung mga street food. Hindi na sya bangketa. (BC1, 22-30 y/o) Ice scramble, Sosyal na, may toppings na. (C2D, 22-30 y/o) Hindi na siya naka cart. Meron na siya sa mga malls. (BC1, 17-21 y/o) Hindi ka na hesitant kainin. Kasi noon madumi. (C2D, 22-30 y/o)

Experts Say
Street foods in malls Mga scramble. Yung mga Hong Kong Style Noodles, boom din siya di ba?

Gourmet Burgers I think medyo lumalakas din yung mga specialty burger shops.

Pang-masa vs. High-end burgers


Burger sa tabi-tabi lang, yung mga Angels burger na buy one take one. (C2D, 17-21 y/o) There are gourmet burgers. Those other fast foods have burgers pero hindi gourmet stuff na specialty burgers. (BC1, 22-30 y/o)

Filipino foods with contemporary twist Basically Pinoy pa rin. But not the usual. Same traditional way of cooking but presented in a different way. More upbeatcontemporary. Asian foods Lumalabas yung mga Asian food, mga Singaporean, Thai. Meron ding trend na parang authentic Chinese. French Cuisine French food or at least French inspired food is very big right now because people know that French food is prepared in ways that are more elaborate. 73

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FOOD BITES 2011

More Views from the Experts

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FOOD BITES 2011

Franchising propels competition and growth


Local and foreign franchises contribute to growth in food service industry. Competition intensifies as new franchises enter the market.
Proven formula in a box is less risky and promises high returns Franchising is the biggest contributor to the growth in food service market. The main appeal of franchising is that the brand name and infrastructure are already in place. Franchisees are also supported by their franchisor; thus, they share both the success and risks in the business. Being part of a franchise makes it easier to lease retail space According to an industry expert, having a franchise provides brand recognition and easier lease approval by mall owners. Malls prioritize franchises because they have a proven system / formula and are expected to perform better than independent outlets. Thats every Filipinos dream naman kasi di ba? A franchise. This is where the money is. Usually kapag magpa-franchise ako, establish na ko, I have my system. Yung brand ko, technology na alam ko, iyon ang binibili mo sa akin. Tapos yung good will ko. May good will ako sa mga malls. The reason why your franchise does work kasi its easier to put your foot in the door in a mall. A franchise means you are recognized by SM or Ayala. They will talk to you and they will take you seriously.
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FOOD BITES 2011

Rising above the clutter as competition intensifies


Growth of the retail trade (via malls) makes for stiff competition; product development, innovation and fresh ideas needed to be different and attract attention.
Opening of new malls and retail enclaves will continue to propel food service industrys growth The more SM put up malls they only approach the franchise owners so kaya dumadami. If you go into an SM in the province you sill see the same fast food in the Manila. So we are not also seeing naman a lot of medyo small players putting up restaurants because of the higher end nga. New products will continue to be launched Very promising for the food industry. Because we cannot live without food. I can see a lot of new products to be introduced. / Mas malalaki na iyong mga establishment kasi change of life style na nga iyong mga tao tapos more flavors na nga may mag open na din ng mga entrepreneurs or may mag experiment in the shop na bago or mga trend sa ibang bansa na dadalhin dito. Out-of-the box thinking The fine dining pie is only this big. Its getting more and more competitive. You want a piece of that pie, you better get on your game. You better pull out your best game and do everything you can. Its not easy and probably youll have to go non-traditional, you have to find new ways of marketing.
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FOOD BITES 2011

Online marketing
Restaurants engage in online marketing strategies to attract consumers
Groupons Malakas sa online ngayon iyong may tinatawag sila na groupons. Some establishments use that para magkaroon ng exposure sa kanila. You sign up, you buy from that site. Nakalista din iyong coupons at groupons na pwede mong bilhin. Cash Pinoy Internet deals like Cash Pinoy, Groupons, we did that and it was fantastic. That is really good but if you want that, you got to get in that right away. Otherwise, it wont be special anymore. Websites are now a requirement, especially for high-end restaurants I can go only as far as email blast. We all have websites, very nice websites. I think thats a requirement now, you have to be updated regularly. You have to be current.

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FOOD BITES 2011

Emerging formats change channel definitions


New dining formats redefine the conventions of food service channels
Food Markets: Weekend food bazaars selling fresh produce to packaged meals Sidcor, sa may Centris Walk. Parang Salcedo Market pero pang-masa. Doon maraming choices. Yung Mercato, marami doon. May focus sila sa mga organic. May tent sila for fresh food, for pastries, hot meals. Another trend is the weekend markets. That is also high-end kasi mahal. There is one in White Plains. The interest in food is there and its like people no longer just want to eat regular food. Online Deliveries: Web-based food delivery service; bringing food to your door step I think iyong delivery din mag hit din. Kasi may tinatawag ngayon na quick delivery pitch. Kahit iyong mga restaurant na walang, delivery they can send. I think gumagana na din siya kasi nga mobile na nga iyong mga tao eh. Private Dining: Personalized, exclusive dinner parties hosted and served by chefs in the privacy of their homes Tatawag ka muna, you rent the place, then they reserve. Meron siyang special menu card and then the atmosphere is theres a chef cooking. When you go there, you eat the food of the chef. Parang yung ginagawa ni Chef Claude. Meron din sa Pasig, sa San Antonio.
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FOOD BITES 2011

Growth prospects: POV of Experts (1)


New establishments and players will drive market growth.
Opening of new restaurants indicate growth of food service industry I think it is going to grow. Puro may opening of restaurants. When I talk to them sa kanila kahit na down ang economy, the only way to recover is to open another restaurant. The feeling that there is an exciting culinary scene in Manila is real. It has only been in the past three to four years where we are seeing an explosion in quality restaurants. Not fast foods but quality restaurants. Expansion of the food service industry due to entry of new players Definitely not shrinking. I still think its increasing but because people are closing, the increase is not too much. There are replacements and there are new ones. But the ones that you see a lot more of will be franchised. Its always promising so, expansion. I think it will cater to all segments. Eventually cater to all segments. Dumadami ang players. Gusto nila makuha yung niche. Gusto nila kung ano pwedeng mag click. They close, they open. One closes the restaurant, then the same person opens a new restaurant with a different concept.
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Growth prospects: POV of Experts (2)


Unprecedented popularity of culinary courses as serious career options; willingness of some segments to spend on a food experience.
Culinary schools increase the workforce in the food service industry; intensify competition Sumasarap na rin ang pagkain dahil nga may education. There are so many jobs, there are so many restaurants opening up. Dahil sa education na nakukuha nila tumataas na rin yung level nila, yung knowledge nila so. Ang mga restaurants ngayon are very willing na to hire these people. There are a lot, more school opening up. A lot. Well then the business will become more competitive. Thats how it is. At least there is no problem for the restaurant to look for chefs. You have all of them around. More spending on food due to higher disposable income (especially among certain segments) There is a lot of spending more powerful food. Its also what I have observed. People are spending now more on experiences and leisure. Dining is one of those things that you write and talk about. The economy of the world has shifted to experiences. You got spending on experiences not on products. Pero sa nakita ko, hindi sila conscious sa ginagastos nila. Lumuluwag ang bulsa nila. Minsan hindi na nila pinapansin. Di katulad dati uy, ito mahal yan, ito na lang ang kainin natin. Ngayon hindi.
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FOOD BITES 2011

Summary and Recommendations

Summary (1)
Learnings
The increasingly busy lifestyles of Filipinos and the need to be more mobile are changing eating habits and influencing food choices. The constant need to be on-the-go motivates consumers to opt for quick, convenient meals. Thus, QSR, convenience stores and food stall/kiosk are the outlets of choice for the everyday meals of busy people. Food deliveries and take outs are also expected to rise in popularity as people have less time to cook their own meals.

Recommendations
Channels lose out when they fail to provide quick meals due to overcrowdedness and long queues. More efficient ordering system, faster crew service, and wellorganized dining space can address these issues. Different options for food deliveries should be made available Ordering by web or text Credit card payments Single order deliveries Easy, ready-to-go meals/drinks that are not messy or difficult to eat placed in spill-proof containers, are ideal for highly mobile people.
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FOOD BITES 2011

Summary (2)
Learnings
Filipinos are increasingly becoming adventurous with food and dining out. They are more open to trying foreign cuisines and unique food concepts. Media, internet, and traveling are creating more awareness and influencing consumers to be more adventurous with their food and channel choices. However, despite the growing openness to novelty, not all new and exotic food are acceptable to the Filipino palate. Trial does not necessarily lead to regular consumption. Foods that does not immediately come close to what the Filipino palate is used to (e.g., too spicy, too bland) are usually modified to suit Pinoy taste buds.
Copyright 2010 The Nielsen Company. Confidential and proprietary.

Recommendations
Introducing foreign cuisines and new food concepts are now more acceptable to consumers than in the past. Food channels that target higher income segments more authentic taste of foreign food is acceptable and desired. Food channels geared towards middle to lower income segments food must be tailored to adapt to Filipino taste.

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Summary (3)
Learnings
Among the upper class and to some extent, the working lower class adults, dining out has become an experience: a kind of luxury, a way to pamper and reward themselves. Certainly, a way to celebrate. Consumers are putting more value and have higher expectations on their dining experience (i.e. food quality, ambiance, service, comfort). Awareness and experience with other cultures are also creating the desire for authenticity in dining. This is especially true for consumers from higher income segments.

Recommendations
Channels that deliver in terms of providing a pleasurable dining experience at reasonable prices will attract more consumers from middle income levels. Outlets outside malls or in little out-ofthe-way places appeal to consumers who want to have an excellent dining experience in a non-traditional setting. Identifying the right location is key to anyone who is exploring to enter the specialty / FSR space.

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FOOD BITES 2011

Conclusion (4)
Learnings
The emergence of new food service channels (i.e. food markets, online deliveries, private dining, etc.) redefine traditional categories and gives further proof of the developments in the dining out industry.

Recommendations
Food service R&D personnel and entrepreneurs can scout for new trends, feel the market pulse and test product concepts via the week-end markets. Other services may also be offered: FSRs that provide take-out or delivery service via the web / online Private dining pushes the envelope on superior, intimate dining experience. It is very niche and primarily works in building a budding chefs reputation. Locate channels close to the target demographics they aim to serve: QSRs, Kiosks, Convenience Stores in high traffic areas FSRs, Specialty shops in high-end malls and out-of-the-way nooks in the city
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Other factors come into play to drive growth in the food service industry Franchising Proliferation of culinary schools

Copyright 2010 The Nielsen Company. Confidential and proprietary.

Title of Presentation

Conclusion (5)
Learnings
Food innovations and new products continue to generate interest. Consumers are drawn towards new, unique food offerings.

Recommendations
New product innovations should be geared towards achieving a better quality of life and must be adaptable to the changes in consumer lifestyle: Healthier food/drink options Quick, convenient food/drinks Durable, non-messy, spill-proof packaging for to-go foods Comfort foods (i.e. street foods, sweets, Filipino cuisine, etc.) Foods that can be customized to suit ones personal taste More options for food deliveries

Creativity and innovativeness should not be confined to the food itself, but also to the way it is positioned, marketed, packaged and priced.

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Summary (6)
Learnings
The influence of internet and social media networks on food choices is rising, in parallel with the increasing internet usage among Filipinos. This trend is especially evident for young professionals from higher SEC as they are more internet savvy and have more disposable income. Word of mouth becomes even more influential as consumers use social media networks to share their dining out experiences.

Recommendations
Having a website is an increasingly important requirement for outlets. This is especially true for high-end restaurants and specialty food shops. Being listed in online restaurant directories also help. Social media networks can be used in image building, maintaining customer loyalty and being updated about market activities. Online comments and reviews about the establishment can also give indications about how the outlet is doing or to know about consumers perceptions about it.
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FOOD BITES 2011

Summary (7)
Learnings
Choosing where to eat does not stop at wanting to satisfy basic (functional) needs; satisfying social and emotive needs are also important. Functional factors: Satisfy hunger in quickest, most affordable manner Product quality Physical store experience Emotive factors Satisfying cravings Mood Social factors Bonding Needing to impress

Recommendations
At the functional level, food service channels must create a pleasant dining experience through clean, comfortable surroundings and decent customer service. In terms of product offerings, food/drinks must meet the acceptable criteria for quality, quantity and price. Emotive and social factors are largely subjective and dependent on the consumers SEC and age. Food outlets that hope to cater to the upper class must meet their emotive and social needs by developing / maintaining a classy, exclusive image.
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FOOD BITES 2011

Summary (8)
Learnings
Budget remains a primary consideration for consumers. However, perceptions on how much consumers are willing to spend on eating out varies significantly across income segments. Consumers from lower income segments want affordability in terms of lower cash outlay. Budget considerations also make price-related promos appealing. Value meals and affordable food/drinks remain highly relevant to consumers, especially those from lower income segments. Higher income consumers seek value for money (i.e. they get what they paid for) and are willing to spend more to achieve satisfaction.
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Recommendations
For the lower class and the upper class students, the following are expected to attract them: Price discounts via coupons, loyalty cards Value meals Unlimited re-fills (drinks, rice) Loyalty to FSRs may be developed among adult upper class consumers by ensuring a pleasurable dining experience driven by food quality, ambiance, customer service.

FOOD BITES 2011

Summary (9)
Learnings
QSR Affordable meals and new product offerings are the major QSR trends. QSRs continue to innovate not only with food but also its interiors. Convenience stores (CVS) Busy lifestyles and the call center industry transforms CVS into a food destination. Food carts/kiosks Franchised food carts/kiosks are growing in popularity due to numerous outlets in strategic, highdensity locations, its wide variety of food offerings, and affordability.

Recommendations
QSRs should improve the diningin experience. Fast, efficient service (i.e. avoid long lines and crowdedness) Nice interiors, comfortable fixtures Continuous product innovation and offer wide variety of products Engage in activities to develop/ maintain customer loyalty CVS and food carts/kiosks should come up with more product offerings suited for more mobile lifestyle. New packaging concepts should also be explored.

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FOOD BITES 2011

Summary (10)
Learnings
FSR FSR trend focus on food quality, dining experience (i.e. creating the right ambiance) and giving rewards to customers. Specialty food stores Led by coffee and dessert shops, specialty food stores are rising in number as consumers seek more satisfaction in food quality and dining experience.

Recommendations
FSRs and specialty food stores compete for shares of the same pie, as both target the same market segments. Some suggestions to develop differentiation and to stand out include: Using a specific theme and creating an image will help to make the outlet stand out from among the competition. Offering unique, specialty products, by which the outlet is known for, can also attract consumers.

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Thank You!!!

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