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Menu for Change
Roundtable reveals chefs' thoughts on "The New Frugality"
CHICAGO, Ill.) –It's no secret – or surprise – that how, when and where consumers eat out has changed since the implosion of the stock market last fall and in the ensuing months of economic difficulty. Just as restaurant patrons are altering their habits in the face of an uncertain climate, those in the foodservice industry recognize and are responding to the shift.
During a recent Culinary Visions Panel™ led by Chicago-based Olson Communications, several industry leaders from a variety of food industry segments gathered at a roundtable discussion to talk about the impact of the economic crisis on the marketplace and, specifically, on their own foodservice operations. One major change identified by the panel is the move toward what has been deemed "The New Frugality."
The New Frugality is defined by, among other habits, consumers' eschewing luxury spending and trading down – but not necessarily eliminating – purchases, including dining choices away from home. "In other words, value-conscious Americans still may dine out, but they are more closely scrutinizing the value of each experience," reported Sharon Olson, president of Olson Communications. "In turn, foodservice leaders told us that they are getting creative in how they deliver value to their customers without scaling back on quality."
Culinary Visions panel participant Chef Jimmy Sneed, executive chef of the acclaimed SugarToad in the Hotel Arista in Naperville, Illinois, said during the roundtable discussion that the days of over-the-top consumption are over, at least for now. "Gluttony is out of fashion. It doesn't feel good," he remarked. "There is a change in the American psyche that is going to last a long time."
As a result of that new mindset, the ways consumers are ordering have notably changed. For one thing, according to the chefs and operators interviewed for the Culinary Visions Panel, patrons are seeking and taking advantage of value-oriented menu options. Panel participant Don Newcomb, founder of ChicaGourmets!, an educational and fine dining food and wine organization in Chicago, cited the draw of daily specials as well as dinner clubs that offer deals, like a $23 three-course lunch. "Restaurants offering specials are letting customers know they are aware of their financial concerns and are doing something about it," Newcomb explains.
Another participant, Chef Sebastien Canonne, master pastry chef, instructor and owner of The French Pastry School in Chicago, shared a success story about providing customers with "pre-desserts." By giving them a sample of dessert free of charge, he says, patrons are more likely to order a full dessert, this time or next time, and appreciate the gesture.
Other chefs, too, are meeting demand for the affordable luxury of dining out not by merely cutting price, but offering more value choices. Chef Takashi Yagihashi, executive chef and owner of Takashi restaurant in Chicago and owner of Noodles by Takashi in Macy's flagship department store on State Street, reported that he has created a successful "one bite" bar menu featuring items from $6 to $8, and on two nights of the week offers a three-course prix fixe menu for $36. "It gives choices to spend or save," Yagihashi points out.
Ultimately, restaurants must be innovative as they provide consumers with satisfying meals they crave but on the budget they must adhere to: "It's all about being flexible," Canonne commented.
Culinary Visions Panel members were quick to note that they are not sacrificing standards to save on costs as they face their own economic challenges. "We would not consider cutting the quality of our ingredients or skimping on service staff because those relate directly to our customer's experience," says Nancy Brussat, owner and president of Convito Café & Market on Chicago's North Shore, adding, "But we have found lots of ways to be more efficient with our phone service, trash collection and linens."
The biggest question – beyond when the current downturn will end – is how consumers will behave once the marketplace picks up again. Will they be accustomed to value and come to expect it? That's one reason why foodservice leaders say that adding value options instead of slashing prices is a win-win for the restaurant and the diner, both of whom are looking to deal with the current reality and grow in the future. "It can be dangerous because customers fix on that price point, which is not realistic to offer on a daily basis," notes Chef Sneed.
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About Culinary Visions:
Culinary Visions™ panel discussions are held regularly among leaders from a variety of foodservice segments. Created five years ago by Olson Communications, the Culinary Visions™ program provides culinary professional insight as well as consumer research to provide the industry with a spectrum of opinions on issues relevant to diners and operators alike.
Since 1988, Olson Communications has specialized in offering personalized, uniquely crafted marketing communication strategies and services for food business clients based in the United States and abroad. The agency's business strategy of remaining small while exceeding the range and depth of service typical of larger food marketing agencies has earned Olson Communications international recognition.
Chef Bios:
Don Newcomb is the founder of ChicaGourmets!, an educational and fine dining food and wine organization. He is also vice-president of Culinary Historians of Chicago.
Award-winning purveyor Nancy Brussat is owner and president of Convito Café & Market on Chicago's North Shore, which sells Italian-focused foods and wines.
Mary McMahon, is the culinary director for Evanston, Ill.-based Now We're Cookin', a venue for cooking classes and demonstrations, special events, corporate meetings and food business start-ups.
Master Pastry Chef and Instructor Sebastien Canonne is owner of the French Pastry School in Chicago. The award-winning French native Canonne was the executive pastry chef for the Ritz-Carlton Hotel in Chicago for several years.
Takashi Yagihashi is executive chef and owner of Takashi restaurant in Chicago, operator of Noodles by Takashi in the Macy's department store in Chicago, and the author of a recently released cookbook, Takashi's Noodles.
Jimmy Sneed, Executive Chef of SugarToad located in the Hotel Arista, Naperville, specializes in regional American cuisine and has earned a national reputation for serving local products.