Serving the New Senior Managing Menus and Dining Senior Living - - PowerPoint PPT Presentation

Serving the New Senior

Managing Menus and Dining

Senior Living Culinary and Nutrition Summit April 6, 2016

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Today’s senior is a luxury-oriented

• consumer. What does

the modern day resident want in foodservices and how can we achieve that in

• ur busy industry?

About fsSTRATEGY Inc.

• Business strategy

consulting support for the foodservice industry focusing on

– Guest experience – Financial performance – Return on investment

• Markets served

– Non-commercial foodservice – Commercial foodservice – Foodservice supply chain

About fsSTRATEGY

Non-Commercial Foodservice Services

• Self-operated and

contracted institutions

– Healthcare – Education – Business dining – Attractions – Remote catering – Transportation – Trade and convention centres

• Services

– Foodservice master plans – Concept visioning and development – Operational reviews – Margin enhancement

• Menu optimization
• Menu explosion
• Labour matrices

– Management options

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• Broader foodservice industry

trends

• New senior foodservice

expectations driven by history

• What do we have to provide?
• What should we provide?
• Menu optimization – applying

commercial foodservice strategies to seniors menus

BROADER FOODSERVICE INDUSTRY TRENDS

Serving the New Senior, Managing Menus and Dining

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Canadian Foodservice Industry

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Source: Restaurants Canada

2014 2015 Preliminary Quick-Service Restaurants 25.3 $ 26.8 $ Full-Service Restaurants 25.1 $ 25.9 $ Contract and Social Caterers 4.9 $ 5.1 $ Drinking Places 2.3 $ 2.2 $ Total Commercial 57.6 $ 60.0 $ Accommodation Foodservice 5.9 $ 6.1 $ Institutional Foodservice 4.4 $ 4.5 $ Retail Foodservice 1.6 $ 1.8 $ Other Foodservice 2.5 $ 2.6 $ Total Non-Commercial 14.4 $ 14.9 $ Total Foodservice 72.0 $ 74.9 $ $ Billions

Senior Living Foodservices

Sources: Restaurants Canada; fsSTRATEGY, 2016 Canadian Institutional Foodservice Market Report

2015 Preliminary Canadian Sales (Billions) Percentage Share of Total Sales Percentage Contracted Total Foodservice Sales $74.9 100.0% Healthcare Foodservice $4.2 5.7% 18% Total Senior Living Foodservice $3.2 4.2% 13% Retirement Foodservice $1.5 2.0% 13% Long-Term Care Foodservice $1.6 2.2% 14%

Canadian Foodservice Industry

• Traffic growth essentially flat

– 2015 average annual foodservice visits per capita 181, down four visits over previous year1 – Why?1

• Prefer home cooked meals
• Watching my budget
• Dining out for special occasions, on weekends
• Sales growth just over inflation

– 2015 menu inflation of 2.8%

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• 1. Source: NPD Group Canada

Chain Foodservice Executive Opinions

• Top opportunities

– Menu – innovation, more choice, healthy options, improved ingredient quality, flavour – Markets – Millennials, daypart growth, small markets, non-traditional (universities, colleges, hospitals)

• Top challenges

– Operating costs – cost of sales, labour – The economy – Competition

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Source: 2016 Chain Foodservice C-Suite Survey, fsSTRATEGY Inc.

Chain Foodservice Executive Opinions

• Top strategies

– Add new units in Canada – Steal market share – Grow average check

• Environmental sustainability – a polarized

market

– 56% - important or highly important – 44% - neither important or unimportant or somewhat unimportant

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Source: 2016 Chain Foodservice C-Suite Survey, fsSTRATEGY Inc.

NEW SENIOR FOODSERVICE EXPECTATIONS – DRIVEN BY HISTORY

Serving the New Senior, Managing Menus and Dining

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History of Foodservice Segmentation

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Quick Counter Casual Dining Fine Dining

1960/70

History of Foodservice Segmentation

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Quick Counter Casual Dining Fine Dining

1960/70

Quick Counter Casual Dining Fine Dining Premium Counter Family Midscale

1980/90

History of Foodservice Segmentation

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Quick Counter Casual Dining Fine Dining

1960/70

Fast Casual Quick Counter Premium Counter Casual Dining Fine Dining Family Midscale Premium Casual

2000’s

Quick Counter Casual Dining Fine Dining Premium Counter Family Midscale

1980/90

Foodservice Industry Segmentation

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Quick Counter Casual Dining Fine Dining Premium Counter Family Midscale

1980/90

Baby Boomers fueled foodservice in this era – their expectations in Retirement Homes are rooted here!

Generational Attitudes Towards Food TODAY

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1925 1945 1964 1976 1995 Silent Generation Age 71-91 Baby Boomers Age 52-70 Generation X Age 40-51 Millennials Age 21-39

“I’m glad I don’t have to cook anymore!” “I wish I had time to cook!” “What, me cook?” “What’s cooking?” “I want what I want, where I want and when I want!”

Today’s Resident Today’s Resident’s Family

Generational Attitudes Towards Food TOMORROW

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1943 1964 1976 1995 Baby Boomers Age 52-70 Generation X Age 40-51 Millennials Age 21-39

“I wish I had time to cook!” “What, me cook?” “What’s cooking?” “I want what I want, where I want and when I want!”

Tomorrow’s Resident Tomorrow’s Resident’s Family

NEW SENIOR FOODSERVICE WHAT DO WE HAVE TO PROVIDE?

Serving the New Senior, Managing Menus and Dining

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Retirement Home Act What We Must Provide …

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• 1. Source: Ontario Ministry of Community and Social Services, Retirement Homes Act, 2010

Foodservice Requirements Retirement Homes1 Safe food  Food restrictions, allergies, sensitivities  Adequate nutrients, fibre, energy  Fresh seasonal foods  Good nutrition  Minimum 21-day cycle  Alternative entrée choices  Individual meals if cycle menu doesn't meet needs  Sufficient time to eat at own pace  Foodservice workers aware of diets, needs and preferences 

No Different Than Commercial Foodservice

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1. Source: Ontario Ministry of Community and Social Services, Retirement Homes Act, 2010 2. Source: fsSTRATEGY Inc.

Foodservice Requirements Retirement Homes1 Commercial Restaurants2 Safe food   Food restrictions, allergies, sensitivities   Adequate nutrients, fibre, energy  Options Fresh seasonal foods   Good nutrition  Options Minimum 21-day cycle  Variety Alternative entrée choices   Individual meals if cycle menu doesn't meet needs  Customization Sufficient time to eat at own pace   Foodservice workers aware of diets, needs and preferences  

NEW SENIOR FOODSERVICE WHAT SHOULD WE PROVIDE?

Serving the New Senior, Managing Menus and Dining

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New Seniors - Menus

• Fresh
• Local, sustainable
• Greater variety
• Healthier options
• Allergies and food intolerances
• Cultural and ethnic foods

New Seniors – Dining Service

• Hospitality-focused foodservice concept

– Implies a sophisticated development approach – Dining as an experience, not a meal

• Perhaps a-la-carte, restaurant-style dining
• Flexible dining times
• Customization
• Authenticity
• Participation

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MENU OPTIMIZATION – APPLYING COMMERCIAL FOODSERVICE STRATEGIES TO SENIORS MENUS

Serving the New Senior, Managing Menus and Dining

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Design & Planning Implementation & Monitoring Evaluation & Analysis

Effective Menu Development is a Cyclical Process

Begin With The End In Mind

• What do you want to achieve with the menu?

– Increase revenue – Drive traffic – Reduce costs – Improve guest satisfaction – Promote social responsibility: promote awareness, support local, etc.

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Begin With The End In Mind

• What do you want to achieve with the menu?

– Increase revenue – Drive traffic – Reduce costs – Improve guest satisfaction – Promote social responsibility: promote awareness, support local, etc.

• Offer the experience the senior wants and

steer their choices to optimize margin

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Simple Math

Objective: Maximize Margin

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𝑼𝒑𝒖𝒃𝒎 𝑵𝒃𝒔𝒉𝒋𝒐 = #𝑻𝒑𝒎𝒆 ∗ 𝑽𝒐𝒋𝒖 𝑵𝒃𝒔𝒉𝒋𝒐 For every menu item you serve, you need to know the cost and in combination with residents’ selections the margin you can achieve relative to the funding (revenue) you are allocated for a meal or meal day = an optimized menu

C•R•A•V•E™ an Optimized Menu

Capacity Relevance Accuracy

Visibility Economics

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Capacity

• Identify potential constraints
• Consider employee skills, and

equipment/technology

• Design for flexibility

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Relevance

Brand Market Customer

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• Trends
• Competition
• Demographics
• Social/Political

Issues

• Demographics
• Psychographics
• Purpose of Visit
• Time of Day
• Path to Purchase
• Image/Concept
• Mission
• Values
• Strategic Objectives
• Capabilities
• Employee Satisfaction

Accuracy

• Controls – detailed recipe costing, cross

contamination, standardized recipes, periodic checks, inventory controls, training

• Research – use appropriate / authentic

descriptors and terminology

• Develop menus within capabilities of staff

and facilities, or enhance the capabilities of staff and facilities

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Visibility

• Choose the information that should be emphasized

and de-emphasized

• Look past the printed menu
• Focus messaging on objective at hand
• Physical Design:

– Eye Magnets: Font size, weight, colour, borders and backgrounds – Easy to Read: font size, contrast, lighting – Number of Items per page and menu – Themes that match your home’s brand

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Imagery: A Picture Says a Thousand Words

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Tomato Steak

Image courtesy of Tina Phillips at FreeDigitalPhotos.net Image courtesy of KEKO64 at FreeDigitalPhotos.net

Imagery: Use Your Words

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• Sensory:

– Crispy, Juicy, Spicy

• Geographic

– Northern, Texas, Country, Maritime

• Nostalgia

– Home-Cooked, Old World, Classic

• Brand

– Jack Daniels, Mill Street, Jimmy Dean

Economics

• Measurable
• Financial Objectives

– “$” go to the bank – “%” define efficiencies – Cost must be relevant to overall budget

Classic Restaurant Menu Economics Four Menu Performers

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Quantity Contribution

Stars:

• High

popularity, high margin Workhorses

• High

popularity, low margin Problem Children:

• Low

popularity, high margin Dogs:

• Low popularity,

low margin

C•R•A•V•E™ as a Flexible, Transferable Framework

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Parent Concept Menu Item

Thank You

fsSTRATEGY is an alliance of senior consultants that provides business strategy support -- research, analysis, design and implementation -- for the foodservice industry

www.fsSTRATEGY.com 416.229.2290