bakingbuyer - November 2011 - (Page PAN -40)

Trends in Retail Independents and bakery cafés are faring better than most retail food establishments in the current economic climate. This is positive news for Hispanic bakeries and bakery cafés that focus on providing authentic baked goods that their local customers know and love. Battling with low operator and consumer confidence, rising food costs and a lack of corporate support, independent restaurants can be especially hard hit during poor economic times. However, recent Mintel research reveals that independents may have some advantages over their competition, as 43% of American consumers who have visited one in the past month seek out independents over chains. Moreover, 52% of independent users say they visit these establishments to support their local community/economy while 51% agree that independents do a good job of supporting their local community— compared to 37% who say the same of chain eateries. “People take pride in their communities and will often reward local businesses that make their community a better place,” says Eric Giandelone, director of Mintel Foodservice. “The primary way independents underperform in relation to chains is through a lack of promotions and limited-time offers, two things that could be easily addressed with social shopping and social networking sites.” Another bright spot in the food world is the bakery cafe segment, which accounts for $5 billion in annual sales and over 3,600 units nationwide. Bakery cafés have been able to successfully navigate the middle ground between quick- andfull service restaurants to outpace industry sales and unit growth for each of the past three years. Total bakery cafe units increased 4.2 percent, and bakery cafe sales increased 12 percent during those three years. A new study by Technomic finds consumers fueling growth in this fast-casual sub-segment by visiting bakery cafes in larger numbers and by becoming frequent customers once they do visit. 71 percent of consumers have now visited a bakery cafe, up from 43 percent in 2008, and nearly three quarters of those consumers say they visit bakery cafe concepts at least once a month. “Bakery cafe chains continue gaining market share in a zerogrowth environment,” says Technomic EVP Darren Tristano. “More consumers are visiting these restaurants and are gaining familiarity, but nearly one in three consumers surveyed still haven’t been to a bakery cafe concept. Their most common reasons have to do with location and unfamiliarity. As more units open and as marketing efforts continue to boost awareness, there is little reason to think the segment will not continue to perform well.” Independents are faring well because of the uniqueness that they have to offer. Among those patrons who had not visited an independent restaurant in the past month, 22% of respondents said it was too expensive, but over half (56%) of people say they are willing to pay more at an indie. According to Mintel, the majority of diners are willing to pay up to 10% more for an independent dining experience for similar food and service found at a chain. “Independent restaurants have the advantage of being able to provide a unique experience for customers and have the freedom of not having to comply with governmentmandated laws that chains have to face,” adds Eric Giandelone. “While chain restaurants are able to offer up a big helping of value and convenience, they need to focus on areas of opportunity where independents are rated better, such as unique menu items and local flair.” Forty-two percent of restaurantgoers say independents are superior 40 NOVEMBER 11 | PANADERIA

bakingbuyer - November 2011

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