Menuing for MillennialS -...

Menuing for MillennialSResearch Study from Sargento Foods - February 2015

Sargento fielded a study in 2014 that surveyed the tastes and preferences of 400+ Millennial consumers (individuals born from 1981 - 1997). The findings of that study, along with supporting evidence from various third-party sources, form the basis of this report’s insights and recommendations.

WHY MILLENNIALS MATTERMillennials now outnumber all other adult generations at 75 million strong. Due to their sheer size, as well as their unique dining desires, they have emerged as a key demographic for restaurateurs. Their dining habits and culinary preferences are distinctly different from previous generations and promise to have a clear impact on your business into the foreseeable future, especially as their spending power increases. This report examines some of those differences and poses options to more effectively menu in line with Millennials’ needs. This report is organized around six distinct aspects of the Millennial profile, specifically Millennials’ desire for:

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BOLD, DIVERSE, & EXOTIC FLAVORS

COMFORT & NOSTALGIA

VARIETY & COMPLEX, LAYERED FLAVORS

AUTHENTIC, NATURAL FOODS

SOCIAL, CONVENIENT, & FLEXIBLE DINING OPTIONS

MEALS THAT ARE ENTERTAINING, EDUCATIONAL, & A SOCIAL CONNECTOR

Menuing for Millennials 1

1 BOLD, DIVERSE, & EXOTIC FLAVORSIt should come as no surprise that Millennials prefer a wide range of in-your-face tastes. More than any previous generation, they’ve been exposed to a rich diversity of flavor profiles and have come to expect choices that match up with their bold global and ethnic dining experiences.

As Food Business News recently pointed out, Millennials are focused on fresh, authentic and bold new flavors, along with innovative flavor combinations. This increases the importance of leveraging the variety offered by regional cuisines in order to accommodate increasingly diverse and demanding tastes. 1,2,3,4 A natural source for this sort of variety is ethnic cuisine. Much more than earlier generations, Millennials like to explore new ethnic dishes – a trend that will lead to even more ethnic tastes on menus in the coming years. 5,6

The bottom line? Bold regional and ethnic flavors are a great way to differentiate menus, seasonal offer-ings, and LTOs in order to attract and satisfy young diners.7,8

MENU IMPLICATIONS

BOLDERISBETTER.

SARGENTO® RESEARCHMILLENNIALS WERE ASKED:“Which of the following cheeses would you be interested in ordering on a burger? (select one)”

TOP FIVE RESPONSES1. Sharp Cheddar 2. Bacon Cheddar 3. Habanero Pepperjack4. Colby Pepperjack 5. Smoked Cheddar

Of the top eight cheeses for burgers, five are varieties of Cheddar – Sharp Cheddar, Bacon Cheddar, Smoked Cheddar, Sharp Cheddar Jack, Double Cheddar.

MILLENNIALS WERE ASKED:“Which of the following cheeses would you be interested in ordering on a chicken sandwich? (select one)”

TOP FIVE RESPONSES1. Provolone-Mozzarella 2. Provolone 3. Colby Pepperjack4. Habanero Pepperjack 5. Asiago

Source: Sargento proprietary consumer research, 2014

MILLENNIALS’ PREFERENCE FOR SPICY AND SMOKY CHEESES ON BURGERS AND SPICY AND AUTHENTIC ITALIAN CHEESES ON THEIR CHICKEN SANDWICHES CREATES A GREAT OPPORTUNITY FOR RESTAURANTS TO FEATURE THESE TYPES OF BOLD CHEESES ON LTO’S.


2 COMFORT & NOSTALGIA Millennials have endured perpetual turmoil – natural disasters, man-made disasters, economic uncertainty, constant media coverage – so it should come as no surprise that they’re looking for a little comfort in their food. However, for Millennnials, “comfort food” is a bit different than for earlier generations.

There is a new term in the lexicon of restaurateurs: “Gastronostalgia.” It defines the way Millennials seek upscale upgrades to traditional childhood favorites.9 Think grilled cheese and tomato soup, but using all natural cheeses, fresh vegetables, and herbs.

Savvy chains have already begun putting a modern spin on comfort foods with independent-style menus that align with Millennial preferences and lifestyles. They’re giving pizzas, burgers, and sandwiches a gourmet, adult twist with ingredients such as smoked meats, heirloom vegetables, and aged cheeses.10,11 The key is to think of iconic childhood favorites, and then transform them with sophisticated ingredients and unique preparations.

MENU IMPLICATIONS

WE CRAVE COMFORT.

SARGENTO® RESEARCHMILLENNIALS WERE ASKED:“Which of the following cheeses would you be interested in ordering on a sub/cold sandwich? (select one)”

TOP FIVE RESPONSES


MILLENNIALS LOOK FOR BOLD FLAVOR PROFILES, BUT WITH CHEESES THAT ARE TRADITIONAL FAVORITES. THIS PRESENTS AN EASY WAY TO ADD VALUE AND BUILD ON A DESIRE FOR COMFORT BY USING SHARPER VARIETIES, EXTRA AGING, SMOKE, ETC. MILLENNIALS FIND COMFORT IN THE BASIC CHEESE AND ARE DRAWN TO THE UNIQUE TWIST YOU’VE CHOSEN TO ADD.

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PROVOLONE-MOZZARELLA

PROVOLONE

COLBY PEPPERJACK

SHARP CHEDDAR

DOUBLE CHEDDAR


3 VARIETY & COMPLEX, LAYERED FLAVORSJust as Millennials seek out bold and diverse flavors, they also look for layered complexity. They’ve developed sophisticated palates and appreciate the interplay of divergent tastes that are blended into a single bite. Multidi-mensional ingredients and menu items are aimed squarely at this desire.

With increasingly diverse tastes and a desire for complex flavors combinations, 40 percent of Millennials order something different every time they visit a restaurant.12,13 The rise of innovative, unique food trucks is a manifesta-tion of this trend and further encourages Millennials’ adventurous eating.14 What’s more, 44 percent of Millenni-als think they’ll be even more adventurous with their food choices in the next 5 years.15

As Millennial tastes are expected to become increasingly diverse16, and with 48 percent of Millennials defining themselves as foodies17, smart restaurateurs will continue developing complex, layered dishes that delight evolving Millennial desires.

MENU IMPICATIONS

COMPLEXITYIS KEY.

SARGENTO RESEARCHSargento Natural Blends make up

4 of top 10 cheeses that Millennials prefer for burgers.

Colby Pepperjack Provolone-Mozzarella Sharp Cheddar Jack Double Cheddar

Sargento Natural Blends make up

4 of top 10 cheeses prefer for sub/cold sandwiches.

Provolone Mozzarella Colby Pepperjack Double Cheddar Sharp Cheddar Jack

CREATE UNIQUE, COMPLEX, AND LAYERED FLAVORS THAT MILLENNIALS CAN IDENTIFY WITH IN ORDER TO TAP INTO THEIR DESIRE FOR SOMETHING DIFFERENT. FOCUS ON WELL BALANCED FLAVORS THAT EXCITE MILLENNIALS’ TASTE BUDS. CONSIDER COMBINING FLAVOR AND TEXTURE FOR THE ULTIMATE LAYERING.

Menuing For Millennials 4

Just as Millennials seek out bold and diverse flavors, they also look for layered complexity. They’ve developed sophisticated palates and appreciate the interplay of divergent tastes that are blended into a single bite. Multidimensional ingredients and menu items are aimed squarely at this desire.

With increasingly diverse tastes and a desire for complex flavor combinations, 40 percent of Millennials order something different every time they visit a restaurant.12,13 The rise of innovative, unique food trucks is a manifestation of this trend and further encourages Millennials’ adventurous eating.14 What’s more, 44 percent of Millennials think they’ll be even more adventurous with their food choices in the next 5 years.15

As Millennial tastes are expected to become increasingly diverse16, and with 48 percent of Millennials defining themselves as foodies17, smart restaurateurs will continue developing complex, layered dishes that delight evolving Millennial desires.


MENU IMPLICATIONSSARGENTO® RESEARCH

preferred for sub/cold sandwiches.

4 AUTHENTIC, NATURAL FOODSSustainability, local sourcing, all natural, minimally processed – these are terms that came of age during the Millennial generation, and they color the attitudes, preferences, and choices Millennials make when they eat. Millenials recognize that, along with making food simply taste better, natural products are firmly in line with their moral and ethical attitudes.

With Millennials gravitating to less processed foods much more than earlier generations18,19, the willingness to invest in ingredients more than advertising is key to a restaurant’s success20 – a wise choice, as 87 percent of Millennials will splurge on a nice meal even when money is tight.21

Millennials are a driving force behind the redefinition of healthful eating in America. 22,23 To Millennials, the cues for healthy eating are real, natural, fresh, and local/regional.24,25 They make a strong and direct connection between the foods they eat and their overall health, and they’re concerned about the times they’re not able to eat healthfully.26 As such, they’re more likely to take advantage of opportunities to customize their own healthy dishes.27

It’s the trend toward clean and healthy eating that is inspiring chefs to use fewer ingredients and promote high quality foods. Millennials search menus for words that denote quality, such as natural cheese – since it is 100% real cheese and never processed.

MENU IMPICATIONS

BE REAL.

SARGENTO RESEARCH

of Millennials stated that they prefer natural cheese over processed American.

The authentic Italian cheeses Provolone-Mozzarella, Provolone and Asiago are 3 of the top 5 cheeses preferred by Millennials for chicken sandwiches.


• OFFER AUTHENTIC, HIGH-QUALITY INGREDIENTS THAT ARE MINIMALLY PROCESSED, AS MILLENNIALS ARE WILLING TO PAY MORE FOR THEM.• INCORPORATE TRANSPARENCY NOT ONLY IN INGREDIENTS BUT BUSINESS PRACTICES THAT ARE SUSTAINABLE AND FRIENDLY TO BOTH PEOPLE AND THE PLANET TO BUILD TRUST AND LOYALTY WITH MILLENNIAL CONSUMERS.• OFFER DISHES AND FOOD OPTIONS THAT MEET MILLENNIALS’ DEFINITION OF “HEALTHY,” SUCH AS WHOLESOME, FRESH AND LOCAL FOODS OR FUNCTIONAL INGREDIENTS. CUSTOMIZATION IS ALSO A MUST.


81%

Sustainability, local sourcing, all natural, minimally processed – these are terms that came of age during the Millennial generation, and they color the attitudes, preferences, and choices Millennials make when they eat. Millennials recognize that, along with making food simply taste better, natural products are firmly in line with their moral and ethical attitudes.

With Millennials gravitating to less processed foods much more than earlier generations18,19, the willingness to invest in ingredients more than advertising is key to a restaurant’s success20 – a wise choice, as 87 percent of Millennials will splurge on a nice meal even when money is tight.21

Millennials are a driving force behind the redefinition of healthful eating in America. 22,23 To Millennials, the cues for healthy eating are real, natural, fresh, and local/regional.24,25 They make a strong and direct connection between the foods they eat and their overall health, and they’re concerned about the times they’re not able to eat healthfully.26 As such, they’re more likely to take advantage of opportunities to customize their own healthy dishes.27

It’s the trend toward clean and healthy eating that is inspiring chefs to use fewer ingredients and promote high quality foods. Millennials search menus for words that denote quality, such as natural cheese – since it is 100% real cheese and never processed.


4 SOCIAL, CONVENIENT & FLEXIBLE DINING OPTIONSMillennials have totally transformed the meaning of meals. Not only do they want dining options that meet their need for socializing, they’ve deconstructed the entire meaning of meals and day parts. The focus has shifted to snacking and sharing options in place of traditional meals.

Millennials prefer more frequent small bites over three larger square meals28, with a “snack throughout the day” lifestyle rather than a strict commitment to regular meals.29 At least 35 percent of meals eaten by Millennials aren’t meals at all, but snacks.30

Millennials eat out as a way to socialize and have conversations, and small plates open up the table to create an ideal social setting.31 As such, tapas, snacks, and bar bites, are quickly becoming the norm.32 According to trend watchers, 35 percent of meals eaten by Millennials take the form of snacks33, with four in ten Millennials snacking more than once a day and only one in twenty eating the traditional three daily meals.34,35

Ultimately, restaurateurs need to have an increased ability to create what Millennials want – whenever and however they want it.

MENU IMPICATIONS

BITE ME.

SARGENTO RESEARCHMILLENNIALS WERE ASKED:“Which of the following appetizers would you be interested in ordering? (select one)”

TOP FIVE RESPONSES


• MILLENNIALS’ 24/7 DINING PREFERENCES CREATE OPPORTUNITIES FOR RESTAURATEURS TO OFFER ALL-NIGHT TABLE GRAZING OR MORE CREATIVE PORTABLE OFFERINGS FOR EATING ON THE RUN.• OFFER SMALL, SHAREABLE PLATES THAT CAN BE MIXED AND MATCHED ANY TIME OF DAY, AS MILLENNIALS OFTEN FOREGO TRADITIONAL MEAL FORMATS IN FAVOR OF MIX N’ MATCH SNACK SIZE OPTIONS. EGGS AND WAFFLES ARE JUST AS OFTEN CONSUMED AT NIGHT AS SANDWICHES AS THEY ARE FOR BREAKFAST IN THE MORNING. • THINK OF SNACKS AS MINI MEALS. MILLENNIALS ARE NOT LIKELY TO HAVE A PURE SWEET AS A (MEAL REPLACEMENT) SNACK. A SMALLER PACKAGE MUST SATISFY ALL THE EXPECTATION OF A BIGGER MEAL.

CHEDDAR JALAPENO BITES

GRILLED CHEESE BITES

SPINACH ARTICHOKE BITES

PARMESAN ASIAGO CHEESE STICKS

BREADED LOADED POTATO BITES


Millennials have transformed the meaning of meals. Not only do they want dining options that meet their need for socializing, they’ve deconstructed the entire meaning of meals and day parts. The focus has shifted to snacking and sharing options in place of traditional meals.

Millennials prefer more frequent small bites over three larger square meals28, with a “snack throughout the day” lifestyle rather than a strict commitment to regular meals.29 At least 35 percent of meals eaten by Millennials aren’t meals at all, but snacks.30

Millennials eat out as a way to socialize and have conversations, and small plates open up the table to create an ideal social setting.31 As such, tapas, snacks, and bar bites are quickly becoming the norm.32 According to trend watchers, 35 percent of meals eaten by Millennials take the form of snacks33, with four in ten Millennials snacking more than once a day and only one in twenty eating the traditional three daily meals.34,35

Ultimately, restaurateurs need to have an increased ability to create what Millennials want – whenever and however they want it.


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FORGO

4 MEALS THAT ARE ENTERTAINING, EDUCATIONAL, & A SOCIAL CONNECTOR

OpenTable, Urbanspoon, Yelp, GrubHub, Foodspotting, Find Me Gluten Free – these are just a few of the apps that Millennials use in discovering and sharing information on restaurants and food. Restaurant dining has always had a significant social element, but Millennials have taken it even further by making dining experiences a form of self-expression and a means of sharing, learning, and connecting.

Millennials are social and communal, as evidenced by the communal tables and dishes designed for sharing that have become increasingly common in restaurants. While they’re looking for quick, convenient, and affordable food, they also value restaurant experiences that allow them to connect with one another.36,37 Small plates and plate-sharing options are on the list of things that matter most to this generation.38

Millennials feel ownership over their food and look for options to modify their meals – but not with so many that it overwhelming.39 Food is not just about nourishment, it’s about self-expression, entertainment, and personal story-telling.40 As natural co-creators, Millennials have an insatiable appetite for novelty, authenticity, and discovery.41,42 Highly educated, they’re inclined to explore and expand on their interests and their dining interests are heavily influenced by exploration.43,44

MENU IMPICATIONS

#BESTMEALEVER

• APPEAL TO MILLENNIALS’ DESIRE TO SEEK BOTH SOCIAL AND COMMUNAL ENVIRONMENTS. OFFER MENU ITEMS THAT SUPPORT ENTERTAINMENT AND SOCIAL INTERACTION. • DESIGN MENUS THAT ACCOMMODATE GROUP ORDERING AND SMALL PLATES. • STRIVE TO BE DIVERSE, INDIVIDUALIZED, CUSTOMIZABLE, AND CROWD SOURCED. CROWD-SOURCED MEALS AND SNACKS WOULD INCLUDE BUILD YOUR OWN OR MIX N’ MATCH MENU OPTIONS.• OFFER CRAFT BREWS, ARTISANAL WINES, AND INNOVATIVE, TRENDY COCKTAILS.• HELP MILLENNIALS WITH NEW DISCOVERIES, OPTIONS FOR GREATER VARIETY, MORE APPS AND OTHER SHARING OPPORTUNITIES, AND SOCIAL MEDIA OPTIONS FOR SHARING THEIR IMPRESSIONS.


MENU IMPLICATIONS

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• APPEAL TO MILLENNIALS’ DESIRE TO SEEK BOTH SOCIAL AND COMMUNAL ENVIRONMENTS. OFFER MENU ITEMS THAT SUPPORT ENTERTAINMENT AND SOCIAL INTERACTION. • DESIGN MENUS THAT ACCOMMODATE GROUP ORDERING AND SMALL PLATES.

WOULD INCLUDE BUILD YOUR OWN OR MIX N’ MATCH MENU OPTIONS.• OFFER CRAFT BREWS, ARTISANAL WINES, AND INNOVATIVE, TRENDY COCKTAILS.• HELP MILLENNIALS WITH NEW DISCOVERIES, OPTIONS FOR GREATER VARIETY, MORE APPS AND OTHER SHARING OPPORTUNITIES, AND SOCIAL MEDIA OPTIONS FOR SHARING THEIR IMPRESSIONS.

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OpenTable, Zomato, Yelp, GrubHub, Foodspotting, Find Me Gluten Free – these are just a few of the apps that

SUMMARYKey Implications for OperatorsThere are many opportunities to appeal to today’s Millennial consumer in the chain restaurant space. It starts with a basic review of your menu, environment, and communications. Here are some key questions to consider:

AS YOU REVIEW YOUR MENU FOR MILLENNIAL APPEAL, ASK YOURSELF: What is authentic? What are our culinary inspired comfort options? Do we have “crave-worthy” variety? What high quality ingredients are in our dishes? Are we responsible and transparent? Are we wholesome, clean, and green? Do we have enough options beyond the three squares daily? Are we convenient? Are there snack and quick fix options?

AS YOU LOOK AT THE ENVIRONMENT YOU CREATE IN YOUR RESTAURANTS, ASK YOURSELF: Do we have both social and communal environments? Are we diverse, individualized, customized, and crowd sourced? Do we help Millennials experiment, educate, and entertain themselves?

Key Takeaways Millennials prefer bold and ethnic flavor profiles, modern twists on comfort foods, and new & different menu options.

Millennials are drawn to fresh, authentic, and local/regional flavors that utilize minimally processed, high-quality ingredients.

Millennials have broken from the traditional three meal/three daypart dining patter in favor of smaller meals or snacks of what, when and where they want them.

Millennials often choose food as their main form of entertainment and social interaction. They like participating – sharing in preparation, tasting, dining, and learning about food together.

When it comes to cheese and cheese products on your menu, Millennials love natural cheese but not simply mild cheddar. Instead, they go for cheeses with high flavor – aged, smoked, with added peppers, blends, and multiple cheese combinations.

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three daily squares?

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Sargento produces custom cheeses for many of America’s favorite restaurant chains. These prod-ucts include a wide array of Millennial appealing natural cheeses, sauces, appetizers, and Culinary Complements. Our service, just like our cheese, is unparalleled by anyone else in the industry, as it is designed around the quality and performance challenges you face every day.

CATEGORY AND CONSUMER INSIGHTSAs you can see from our work on Millennials, we can help you gain a stronger understanding of consumer needs. Speak to our Millennial Menu Advisor or your Sargento Sales Manager for more information.

CULINARY SERVICESWe have a deep understanding of the needs of national chains, especially as it relates to Millen-nials. Our culinary team is on a mission to help you at any level – from regional LTOs to national rollouts. • Four seasoned R&D chefs and 50+ dedicated R&D specialists • Culinary council support • Proactive ideation and problem solving

CUSTOM CHEESE SOLUTIONSWe know how important it is for you to evolve your menu and stand out from the crowd, and our culinary professionals are on hand to help you do precisely that – onsite at your facility or ours and with an eye to that important Millennial diner.

SAMPLESWhether you want to try a stock sample or a custom product that’s been developed especially for you, you can count on a quick turnaround and a great product. This is especially important as you design products to draw that Millennial consumer.

FORWARD BUYINGWe have expert buyers and programs that will free you from fluctuations in the cheese market.

Call now and let us show how we can help make your menu work harder. Whether it’s the next burger, sandwich, or pasta build, our team of cheese and culinary experts is ready to show you effective ways to set your menu apart.

SARGENTO CAN HELP

sargentofoodservice.com 1-800-558-5802 Menuing For Millennials 9

Notes1 “Sophisticated Heat,” Food Business News, Oct, 20142 Hartman Group, 20143 Technomic, Inc., “Understanding Millennials”, 20144 Affinova, 20145 The Hartman Group, 20146 IBISWorld report, 20147 Affinova, 20148 Affinova, 20149 “What’s Cookin’ With Millennials,” Nov 2013, Lapine10 “Generational Flavors,” Flavor & the Menu, Sept/Oct 201411 “What’s Cookin’ With Millennials,” Nov 2013, Lapine12 “Understanding Millennials”, the Perishables Group, 201413 Affinova14 Hartman Group Millennials study, 201415 BBDO, 201416 Hartman Group, 201417 BBDO, 201418 “Understanding Millennials”, the Perishables Group, 201419 Hartman, 201420 “How the Millennials will Dictate the Future of Fast Food,” 201421 “Understanding Millennials”, the Perishables Group, 201422 #WhatTheyAreEating @mintelnews, 201423 “Understanding Millennials”, the Perishables Group, 201424 “Generational Flavors,” Flavor & the Menu, Sept/Oct 201425 The Hartman Group “Outlook on Millennials,” 201426 Views Toward Nutrition And Healthful Eating Among Millennials , International Food Information Council Foundation, 201427 “5 important things to know about Young Millennials’ dining habits”, Mintel, 201428 http://www.restaurantmagazine.com/3-mind-blowing-facts-about-millennials-and-your-restaurant/, 201429 “How Millennials Snack By Age and Lifestyle,” QSR magazine30 The Kruse Co http://www.foodprocessing.com/articles/2012/millenials-drive-snack-ing/31 O’Neil on food, 201432 “Small Plates-Big Variety” FSR, 201433 http://www.mayoclinic.org/healthy-living/nutrition-and-healthy-eating/expert-blog/millennials-food-trends/bgp-20056133, 201434 Technomic, 201435 http://www.foodprocessing.com/articles/2012/millenials-drive-snacking/, 201236 http://www.restaurantmagazine.com/3-mind-blowing-facts-about-millennials-and-your-restaurant/, 2014)37 “For Millennials, food isn’t just food. It’s community ... “ Washington Post, 2014) 38 “Millennial Passions” The Boston Consulting Group, 201439 Hartman Group Millennials study, 201440 BBDO, 201441 Hartman Group Millennials study, 201442 “Wining Millennials with innovation,” Food Business News, July 1, 201443 http://www.theindependentrestaurateur.com/meals-for-millennials-the-lat-est-in-generational-food-trends/, 201444 Hartman Group, 2014

MEET OUR MILLENNIAL MENU ADVISOR

Kelly Johnson, Sargento Millennial Menu Advisor Contact Kelly and the Sargento team to help make your menu work harder for Millennials!

Learn more at sargentofoodservice.com

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