Summer Menu Innovation Trends

2. Summer Menu Innovation Trends Thanks to celebrity chefs and TV channels like The Food Network, consumers have an increased awareness and interest about food. These well-versed diners, or foodies, expect something more than the basics when they dine out. To accommodate this growing demographic, operators are rolling out a variety of gourmet-type offerings to make their menus stand out. They are using upscale and unusual ingredients as well as less traditional preparation styles to add a unique twist on their menus. This increased food knowledge also tends to mean that diners want meals made from fresh, seasonal produce. Operators appeased these customers with the use of summertime seasonal flavors such as strawberry, peach and lemon. They started including the word “fresh” more often in their menu descriptions to show that they are using quality ingredients. The names of many LTOs this summer also revolved around the season, so guests were easily able to make the connection. Just as diners are more aware of the quality of what they are eating, many are also aware of the health factors when dining out. With everyone from the First Lady to Anthony Bourdain calling for healthy eating across the nation, consumers are increasingly searching for better-for-you offerings during away-from-home meals. Operators rolled out healthy options across the board, from breakfast to dessert at everywhere from quick-service chains to full-service concepts. These offerings were described as light, low calorie and “skinny,” and were either individual menu items or an entire healthy line. Although consumers are interested in healthier, more gourmet offerings, many are still concerned about the cost of dining out. This summer, several LTOs revolved around discounts, giveaways and promotions. In this deal-driven culture, operators were aware that wallet-conscious diners are more likely to visit a certain concept if they feel like they are getting their money’s worth.

3. Summer Report by Daypart Note: 23 chains with new Breakfast items in Summer. 184 chains with new Lunch/Dinner items in Summer. Lunch and dinner drove the lion’s share of menu innovation during summer 2011. The 184 chains that added lunch and dinner offerings debuted some 1,584 total items, or 94% of all new items across all dayparts. That compares to just 106 items that only 23 chains added to their breakfast menus during the same period. Entrées drove the vast majority of activity across all three dayparts.

4. Summer Report by Segment Note: 1,690 menu items in June 2011 – August 2011 for the Top 250 chains. During the summer 2011 period between June and August, the Top 250 chains we tracked added a total of 1,690 permanent and limited-time offerings to their menus. Of those almost 1,700 items, some 50% were found on the menus of casual-dining restaurants. Healthier lunch and dinner entrées, as well as the use of fresh produce and seasonal flavors, drove much of the innovation at casual-dining chains. Quick-service restaurants were the next most active with 28% of all new menu offerings.

5. Summer Report by Mealpart As usual, most menu activity among the chains tracked came in the entrée mealpart, which accounted for about 56%of additions across all mealparts. Many of the 954 new lunch and dinner entrées added this summer features a variety of leaner proteins such as chicken, fish and shellfish. With 182 new items, desserts were the second most-active mealpart, followed closely by adult beverages with 154 items. Appetizers were also popular additions this summer, as operators we tracked added 114 starters during the period.

6. Add-On Mealpart • There were 19 new add-ons this summer, 13 of which were sides. These sides fell into two categories—increased portion sizes or free giveaways. Applebee’s Neighborhood Bar & Grill invited guests to turn a 7-ounce sirloin steak into a 9-ounce cut for an additional $2. Guests at Palm Restaurant could also upgrade the size of their meal with the offer to add an additional pound of lobster to its Summer Lobster Dinner. • Several concepts turned to giving away free sides to endorse other menu items. Arby’s promoted its new Prime-Cut Chicken Sandwich and Steakhouse Sandwich by offering a free drink or fries with an order. Other chains were more general with the giveaways. Quiznos offered free chips or a cookie with the purchase of a regular sub or salad; Auntie Anne’s provided a free soda or lemonade with the purchase of a pretzel; and Captain D’s gave a free large side with the purchase of a family pack. • Cinnabon is responsible for half of the new toppings. The chain added a variety of fruit-flavored cream-cheese frostings to dress up its signature cinnamon-roll offering. Note: 184 chains with new Lunch/Dinner items in Summer.

7. Adult Beverage Mealpart • Specialty drinks were by far the most popular new adult beverage, with 77 additions this summer. In accordance with the summer season, chains highlighted seasonal fruits in new cocktails. Bonefish Grill added strawberry and watermelon martinis, and Grand Lux’s summer cocktail menu included a Clementine Crush. • Operators were aware that diners are increasingly calorie conscious, as lower-calorie “skinny” drinks and light beers were common additions. Miller’s Ale House embraced seasonal flavors in its line of “Lite” martinis, with featured varieties such as pink grapefruit, lemon drop and açaí como. • Wines, both red and white, were the second and third most-added adult beverages this season with 32 and 24 additions, respectively. Varietals ranged across the board, from Chardonnay to Pinot Noir. Because of the plethora of options, operators such as Il Fornaio and Mimi’s Cafe offered wine flights. Note: 184 chains with new Lunch/Dinner items in Summer.

8. Appetizer Mealpart • Appetizers within the “other” section were most common new items within the appetizer mealpart. Offerings in this category range from potato skins to quesadillas to sweet-potato fries. • Seafood was a popular ingredient for a variety of new offerings within the appetizer segment. Shrimp was especially prominent in the breaded appetizer section, with coconut shrimp, sweet chili shrimp and crispy shrimp Napoli all added. Shrimp was added for non-breaded protein appetizers as well, as were scallops and tuna. Dips, such as Buca di Beppo’s lobster fonduta and Chart House’s shrimp and crab dip, also highlighted seafood. • Another popular addition from breads and other appetizers was flatbread, served with a variety of toppings. Different flatbread additions this summer included Outback Steakhouse’s Mediterranean flatbread, Tony Roma’s chicken Caesar flatbread and Bravo! Cucina Italia’s bacon and spinach flatbread. Note: 184 chains with new Lunch/Dinner items in Summer.

9. Breakfast Mealpart • With 59 new items this summer, breakfast starches were added more to the breakfast mealpart than all other items combined.Once again, strawberries were used as a topping on a large number of breakfast starches, from strawberry-stuffed French toast at Perkins Restaurant & Bakery, to fresh strawberry pancakes and crệpes at Shari’s Restaurants. Other fruits, such as lemons, blueberries and bananas, were also popular this season. • Egg dishes were also popular this summer with 16 new menu additions. In addition to traditional omelets and skillets, chains introduced more upscale, gourmet egg options. Mimi’s Café added a crab cake omelet, and Grand Lux Café introduced a spinach and mushroom Benedict. • Operators tried to attract health-conscious consumers for breakfast by adding better-for-you offerings. Options range from multigrain pancakes at Coco’s Bakery Restaurant to a Fit Fare omelet at Denny’s. Note: 23 chains with Breakfast items in Summer.

10. Dessert Mealpart • Baked goods were the most popular dessert additions this summer, with 72 new offerings reported. Many of these desserts featured seasonal fruits, including strawberries, blueberries, peaches and lemons. These fruity flavors were featured in everything from pies to cobblers to shortcakes. • Coinciding with the summertime weather, 60 new ice-cream dishes were added to menus. While many flavors, such as Cold Stone Creamery’s strawberry-basil ice cream, are unique, several operators stuck to the classics. Chocolate-based ice cream, such as Dairy Queen’s Triple Chocoholic and Brownie Batter, dominated the flavor scene. • On-the-go diners looking to cool down this summer had a variety of new milk shakes to choose from. New milk-shake offerings included the Big Apple Shake from Johnny Rockets, Pineapple Shake from Whataburger and Turtle Sundae Shake from SONIC Drive-Ins. Note: 184 chains with new Lunch/Dinner items in Summer.

11. Entrée Mealpart • Sandwiches were overwhelmingly the most-added new items within the entrée meal part. Coffee concepts and breakfast chains got in on the lunch-and-dinner business by adding sandwiches to their menus. These sandwiches, such as the line of grown-up grilled cheeses from Caribou Coffee, appeal to on-the-go diners looking for a quick, filling bite. • Once again, chicken was the most popular protein due to its versatility and lower price point. With beef prices up, chains found ways to make their chicken dishes exciting and appealing. This is achievable because chicken pairs well with a vast range of flavors and preparations. It also bears mentioning that chicken is typically considered a healthier protein. • Salads, also typically seen as a better-for-you option, were the second most commonly added entrée. Seafood was frequently featured in salad additions, particularly lobster, crab, shrimp and tuna. Examples include Gordon Biersch’s Key Lime Shrimp Salad and Rock Bottom’s Asian Ahi Salad. Note: 184 chains with new Lunch/Dinner items in Summer.

12. Non-Alcoholic Beverage Mealpart • Lemonade, a popular summertime drink, saw seven new menu additions this season. Frozen lemonade was also heating up summer menus, accounting for a large portion of the new frozen beverages. Taco Time, a Mexican concept, altered this seasonal beverage to fits its positioning by adding three flavored frozen limeades to its menu. • Smoothies were the second most-added non-alcoholic beverage, with 20 new offerings. The better-for-you trend made its way into beverages as well, as operators shifted their menus to health-focused offerings such as Smoothie King’s Lean1 smoothies and Caribou Coffee’s line of all-natural fruit and yogurt smoothies. • Operators clearly took today’s “cocktail culture” into account when developing beverage menus. Several chains put mocktails, or non-alcoholic cocktails, onto their menus. Dairy Queen added Strawberry and Mango Piña Coladas, Così launched a Pomegranate Mojito Lemonade and El Torito debuted a Cucumber Cooler. Note: 184 chains with new Lunch/Dinner items in Summer.

13. ‘Other’ Mealpart • The “other” mealpart consisted of 13 new kids’ items and four new offerings for seniors. Once again, many operators ran promotions offering a free kids’ meal with the purchase of an adult entrée, a marketing tactic designed to draw in wallet-conscious family diners. • While many adults are concerned about their own health, parents also have to worry about the health aspects of their children’s diets. To comfort parents looking for better-for-you options for their kids, chains have started adding healthy kids’ items. Instead of the typical french fries, Jack in the Box offered Chiquita apple slice and Qdoba menued 100% vegetarian beans and apple sauce. Popeyes Louisiana Kitchen introduced its Get Up & Geaux! Kids’ Meal, featuring naked chicken tenders, applesauce, a toasted baguette roll and a zero-calorie drink. • The new dishes for seniors included a Fit Fare Grilled Chicken entrée from Denny’s, showing that operators were aware that all diners, from kids to seniors, want healthier menu options. Note: 184 chains with new Lunch/Dinner items in Summer.

14. Side Mealpart • Operators did not seem to favor any sides in particular as new additions for summer 2011. The “other” category, which included eight new menu items, listed pasta, potato chips, fruit, pasta and more. While the rest of the mealparts seem to focus on healthy offerings, sides do not represent that same shift towards better-for-you options. Fatz Café offered stone-ground cheese grits and Luby’s promoted its macaroni and cheese. • Of the seven new sauces added, the vast majority were dipping sauces. McDonald’s added four new savory dipping-sauce flavors, including spicy Buffalo and sweet chili. Tim Hortons added caramel dip and chocolate dip to accompany its signature Timbits offering. • Two of the three new bread sides were pizza-like dishes—Little Casers listed Crazy Bread and Quiznos added whole-grain flatbread. This trend was also seen in the appetizer mealpart. Note: 184 chains with new Lunch/Dinner items in Summer.