Industry Insights A roundup of noteworthy foodservice findings for the week of June 14, 2021

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Industry Insights A roundup of noteworthy foodservice findings for the week of June 14, 2021
Industry
Insights
A roundup of noteworthy foodservice findings
for the week of June 14, 2021
Industry Insights A roundup of noteworthy foodservice findings for the week of June 14, 2021
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© 2021 Technomic, Inc.
I G N I TE C O M PAN Y

Starbucks, Domino’s                                                                                 TOP CHAINS BY TOTAL U.S. NET UNIT OPENINGS

Lead Top 500 Chains                                                                   Chain Name
                                                                                                                  2020 U.S.
                                                                                                                     Units
                                                                                                                              2020 U.S. Net New
                                                                                                                                      Openings
                                                                                                                                                    Annual
                                                                                                                                                  Growth %

in 2020 Openings
                                                                                      Starbucks                      15,337                288        1.9%

                                                                                      Domino's                        6,355                229        3.7%
In a year that saw unprecedented chain     achieved the highest number of new
                                                                                      Jersey Mike's Subs              1,854                189       11.4%
restaurant closures, many brands still     unit openings, netting out 269 total new
managed to open new stores. Out of         restaurant locations across the Top
the Top 500 chains, 164 grew their         500. Led by high-growth chains like        Chick-fil-A                     2,659                166        6.7%
location footprint in 2020 despite the     Chick-fil-A, Popeyes Louisiana Kitchen
COVID-19 pandemic.                         and Wingstop, chicken restaurants          Chipotle Mexican Grill          2,724                144        5.6%
                                           grew their cumulative location footprint
Starbucks led the charge, opening 288
                                           by 1.7% from the year prior.               Popeyes Louisiana Kitchen       2,608                132        5.3%
units in 2020, registering a 1.9% uptick
in locations from the year prior.
Domino’s was close behind, ending                                                     Wingstop                        1,359                128       10.4%
with 229 net openings in 2020. Kung Fu
Tea netted 74 store openings in 2020,                                                 Tropical Smoothie Cafe           914                  80        9.6%
bringing its total to 292 in the U.S.
Overall, the chicken menu category                                                    Kung Fu Tea                      292                  74       33.9%

                                                                                      Panda Express                   2,263                 54        2.4%

Sources: Technomic Ignite Company

© 2021 Technomic, Inc.                                                                                                                                  3
I G N I TE M E N U

U.S. Operators Turn
to Poutine for
Breakfast
Poutine is a Canadian menu staple,                        these items in breakfast poutine to
with 29% of Canadian operators                            appeal to consumers looking for
menuing the potato, gravy and cheese                      traditional morning ingredients in less-
curds combination. In the U.S.,                           common presentations.*
however, poutine is evidently less
                                                          Honey Salt Food and Drink in Las
popular (menued by just 1.3% of
                                                          Vegas, for example, offers Breakfast
operators), so the opportunity for
                                                          Poutine, featuring herb-roasted
innovation remains open. Enter
                                                          potatoes, bacon gravy, cheese curds
breakfast poutine.
                                                          and sunny-side Desert Bloom Farm
Operators are taking the base                             egg, while Bacon in Boise, Idaho,
components of poutine and adding in                       serves Bacon & Eggs Poutine with fries,
American-loved breakfast staples.                         cheese curds and southern gravy.
Some of consumers’ preferred
                                                          Traditional poutine shares commonalities
breakfast items are bacon (61% of
                                                          with the popular U.S. dish loaded fries
consumers purchase bacon away from
                                                          (menued by 5.0% of operators), so a
home for breakfast on the weekends),
                                                          breakfast poutine that’s “loaded” with
eggs (53%) and hash browns/potatoes
                                                          a.m. favorites could be a new iteration
(50%), so operators are combining
                                                          that wins consumers’ hearts.
Source: Technomic Ignite Menu, Q1 2020 to Q1 2021                                                    Poutine topped with poached eggs and
*Base: 604 consumers ages 18+ (per weekpart) who purchase breakfast away from home                                       hollandaise sauce
*Source: Technomic 2019 Breakfast Consumer Trend Report                                                          Image Source: Shutterstock

© 2021 Technomic, Inc.                                                                                                                   4
I G N I TE C O N S U M E R
                                                                                                    SINCE THE RECENT PANDEMIC OCCURRED, HOW OFTEN DO YOU
                                                                                                  ORDER FOOD FROM ANY TYPE OF RESTAURANT AND EITHER EAT IT AT

Restaurant
                                                                                                     THE RESTAURANT, HAVE IT DELIVERED OR PICK IT UP AT THE
                                                                                                               RESTAURANT TO EAT IT ELSEWHERE?

Frequency Improves
As the pandemic took hold early on in                  consumers report a steady decrease in          59%      55%       57%       60%
2020, Technomic’s Ignite Consumer                      the number who have stayed away from
program survey layered in additional                   restaurants over the past four quarters.
questions specific to consumer changes                                                                                                      Once a week+
                                                       A rebound in overall frequency will be
resulting from COVID-19 and its impact                                                                                                      1-3 times per month
                                                       an essential ingredient for achieving
on foodservice usage. Through polling
                                                       best-case restaurant growth
consumers on their overall restaurant                                                                                                       Less than once per month
                                                       projections, and Technomic will
order and visit frequency, Technomic
                                                       continue to closely monitor consumers’                                               Never
was able to gauge the pandemic’s
                                                       return to restaurants in the coming
impact on usage across the country.
                                                       quarters.
Since the peak of lockdowns and dining                                                                27%      33%
                                                                                                                         31%       31%
room closures, there has been a
gradual increase in the number of
diners who patronize restaurants once
a week or more frequently. Additionally,                                                              7%
                                                                                                                9%        9%        9%
                                                                                                      8%
                                                                                                                3%        2%        2%
                                                                                                    Q2 2020   Q3 2020   Q4 2020   Q1 2021
Base: 27,300 consumers ages 18+ per quarter
Source: Technomic Ignite Consumer brand ratings data

© 2021 Technomic, Inc.                                                                                                                                                 5
G L O B AL F O O D S E RV I C E N AV I G ATO R
                                                                                                                                                                   # OF NEW MENU ITEMS
                                                                                                                                                                     ADDED PER CHAIN
                                                                                                                                                                        DURING 2020

LTO Battle: Asia Edition                                                                                                                                       Asia Average           18.7

                                                                                                                                                                   Thailand                 27.9

                                                                                                                                                               South Korea              22.6
Menu development is crucial for chains                          on the average number of new products             Thailand and South Korea come in at
to drive traffic and brand excitement in                        launched by leading chains throughout             third and fourth, respectively, both           Singapore       11.7
nearly every country globally—and no                            2020 based on monthly LTO tracking                easily outpacing the regional average.
more so than in Asia.                                           among key sets of restaurants.
                                                                                                                  It’s key for operators to understand the       Philippines   7.2
LTOs that express emerging trends,                              To set the baseline, in Asia overall, key         importance of product development in-
dishes and drinks that showcase                                 chains each rolled out about 18.5 new             market as it indicates how competitive
seasonal ingredients, and innovative                            Items during 2020 on average.                     the local landscape is and how                   Malaysia     9.4
items that restaurants develop in house                                                                           important it is to stay on top of emerging
                                                                Japan, to anyone familiar with the
all play into attracting both new and                                                                             trends. Suppliers can leverage this                Japan                         38.8
                                                                market, is easily the champ in the Asia
existing guests.                                                                                                  understanding to keep their pipeline
                                                                LTO battle with nearly double the
                                                                                                                  appropriately filled for the markets they
But the quantity of new products can                            region’s average.                                                                                 Indonesia
                                                                                                                  operate in.                                                        15.1
vary widely by country—even when
                                                                China comes in second, with chains on
looking at the same brand’s menu                                                                                  Technomic tracks LTO activity across
                                                                the mainland launching about 32 new
across different markets.                                                                                         25 markets globally and publishes data               India   6.5
                                                                items apiece over the course of the
                                                                                                                  in its annual country reports.
Check out who wins the battle for LTO                           pandemic-stricken year.
supremacy in Asia. Findings are based                                                                                                                                 China                  32.3

Note: 320 chain menus tracked monthly in Asia across China, India, Indonesia, Japan, Malaysia, the Philippines,
Singapore, South Korea and Thailand from January 2020 to January 2021
Source: Technomic Global Foodservice Navigator Program

© 2020 Technomic, Inc.                                                                                                                                                                             6
COVID-19 DISRUPTION INDEX
                                                                                                                           COVID-19
                                                                                                                                         PERCENT      PERCENT
COVID-19 Disruption Index is                Change Versus Previous Week and          TOP 5 MOST DISRUPTED MARKETS      DISRUPTION
                                                                                                                                          CHANGE       CHANGE
powered by Shortest Track, utilizing AI,    Month                                        BY INDEX POINT CHANGE                INDEX
                                                                                                                                          VERSUS       VERSUS
                                                                                        (VERSUS PREVIOUS WEEK)      (MAX: 1.00, HIGH
machine learning and disparate sets of      Change versus previous week/month                                          DISRUPTION)
                                                                                                                                       LAST WEEK   LAST MONTH
data resources to quantify the potential    allows users to see if the market is
risks that U.S. businesses face from the    becoming more or less disrupted over
spread of the COVID-19 virus at the         time. Changes that are positive (+)
market level.                               show a move toward becoming              1   Lexington-Fayette, Ky.                .090      12.51%       -7.53%
                                            increasingly more impacted by COVID-
The highest index possible is 1.00,         19 (not good). Changes that are          2   Reading, Pa.                        0.360        2.81%      -17.11%
which is not good and reflects markets      negative (-) show a trend toward being
that are extremely disrupted. The index     less impacted by COVID-19 (good).
is updated on a weekly basis.                                                        3   Springfield, Mo.                    0.371        1.98%      -22.71%
                                            Ignite Subscribers: Download full
The COVID-19 Disruption Risk Index          market report                            4   Lebanon, Pa.                        0.438        1.59%      -19.12%
shares weekly updates through a
business lens, rather than a health lens,
and incorporates more than 20 different                                              5   Harrisburg-Carlisle, Pa.            0.452        1.46%      -19.42%
data signals to measure disruption and
predict future impact. These signals
include infection rates, deaths, state-
level restrictions and social distancing
requirements, population densities and
mobility, group size limitations and
lifestyle risk factors contributing to
spread. More information is available
HERE.

Notes: Data updated June 8, 2021
Source: Shortest Track

© 2021 Technomic, Inc.                                                                                                                                          7
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