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A 'New' Generation
By: Christopher Wolf
For decades, the consumer of choice for quick-serves has been the 18-to-34-year-old crowd. But recent studies show these young adults are cutting back significantly on quick-serve visits, even while older generations of consumers are increasing their patronage. At the same time, the industry is witnessing double-digit growth of smaller chains offering more mature versions of traditional fast food in spite of young-adult tastes. Brands looking for change in their business prospects would be wise to consider branching out and aligning with a new (read: older) generation of consumers that offers promise.
Meet the Jones Dubbed “Generation Jones,” consumers age 44 to 55 are shaping not only America’s political and consumer culture of late, but appear to be leading growth trends in the quick-service industry as well. The challenge is to understand what messages and menus appeal to this target.
You’ve probably never heard of Generation Jones until now because the term “Baby Boomer” was traditionally assigned to all Americans born during a birthrate peak from 1946 to 1964. But over time that classification has lost credence partly because most generations typically span only 10 to 12 years (not 20) and also because it has become increasingly clear that front-end Boomers (think George W. Bush, Oprah Winfrey, and Donald Trump) represent a very different set of shared values and experiences than trailing-end Boomers (think the Obamas, Tom Cruise, and Madonna).
As early as 2000, cultural historians like Jonathan Pontell began encouraging the separation of consumers born between 1954 and 1965 from the Boomer behemoth and gave them their own identity: Generation Jones. This proposal received particularly widespread validation from the media and politicians in 2008 as it became clear this group would be the key swing vote in winning last year’s presidential race. Now, thanks to two prominent Gen Jonesers in the White House, this age wave is being seen as the new leadership and was identified by the Associated Press in January as the most important trend of 2009.
Breaking Old Habits Not only is Generation Jones attractive in size (comprising 53 million consumers, or one-fourth of America’s adult population), but it also appears to represent growth for the quick-service industry. Over the past five years, 18-to-24-year-olds have decreased their per capita quick-serve visits by an alarming 19 percent, with all generations below 35 years old decreasing their frequency, according to the NPD Group. In contrast, all consumer groups 35 and older have increased their annual patronage of quick-serves in the past five years, with the 35-to-49-year-old cohort, in particular, growing 6 percent and 50-to-64-year-olds growing 7 percent.
I asked Bonnie Riggs, an analyst for the NPD Group, for some insight on these dynamics. She explains, “Older generations are still financially better...
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It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change.
- Charles Darwin
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View updated pricing and information each week on the website for the following food-commodity markets:
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Beef, Veal & Lamb |
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Beef output rose .3% last week from the previous week. Beef production typically trends downward from now through the end of the Holiday Season. As expected, middle meat beef demand has slowed which is influencing many of the appropriate markets downward. But, beef end cut demand is reported to be good which is supporting some end cut prices. The 90% domestic beef market is currently trading at a notable discount to the 90% imported beef market. A depreciating dollar could limit overall beef imports which may put upward pressure on the 90% domestic beef market this fall. Price USDA, FOB per pound.
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Dairy |
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The CME cheese markets have continued to mostly decline in the last week although there are signs that the markets may be bottoming. Milk supplies are reported to be tightening, dairy cow slaughter is picking up which will further limit pending milk stocks, a depreciating dollar could encourage exports and seasonal charts indicate that the cheese markets should trend upward in October. The butter market is relatively steady but is currently at a notable discount to the international price average. Any butter market increases from here may only be modest. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
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Chicken production continues to edge modestly upward although it still remains below 2008 levels. Chicken production for the last week of August was just .7% less than the same week a year ago and the largest for any week since the beginning of January. The recent chicken production expansion is partially attributed to a cooler summer limiting death loss with birds. If chicken production does not deteriorate in the coming months it could lead to notable declines in some of the chicken markets as demand usually softens for many chicken products in the fall. Since chicken production began to surge upward in July the boneless skinless chicken breast market has depreciated roughly $.20. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
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The bulk of the 2009 Newfoundland snow crab fishing season ended earlier this summer. Total Newfoundland snow crab landings are estimated at 117.5 million tons which is 1% more than last year and 15% larger than 2007. The snow crab leg markets are relatively firm. Cyclical charts and the recent dollar depreciation suggest that higher snow crab leg prices may be pending but slow demand may temper any such increases. Prices for fresh product, unless noted, per pound from Fisheries Market News.
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Pork |
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Pork production last week rose 2.7% from the previous week. Pork output is anticipated to seasonally trend upward in the coming months. Sow liquidation has picked up as of late. Sow slaughter for the week ending August 22nd was the largest for any week since January. If sow slaughter remains strong it could limit pork production later in 2010. The rib markets are weak due to poor demand. Last year, the baby back rib market declined 11% during the next five weeks. Baby back rib prices may bottom near $2.20 this fall. Prices USDA, FOB per pound.
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Produce |
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The shipping point yellow onion market is moving modestly downward and is currently at its lowest level in nearly three months. History suggests that additional onion market decreases may be forthcoming. Last year, the shipping point yellow onion market declined 16% during the next four weeks. The avocado market is tracking sharply lower as imports improve. Additional avocado market decreases are anticipated through the end of the month. The potato markets remain weak. Engaging Idaho potato prices may persevere through the fall. Prices USDA FOB shipping point unless noted (terminal).
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Oil and Grains |
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With the threat of a freeze not forecasted until late this month, the 2009 corn and soybean crops are likely getting bigger. Bias is downward for the corn and soybean markets. Prices USDA, FOB.
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Canned and Frozen Food |
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Tomato Products, Canned - 2009 US tomato for canning output is forecasted at 14.1 million tons, 15% larger than last year and a record. The markets are firm. Prices per case (6/10) FOB, unless noted from ARA.
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Processed Fruits and Vegetables - 2009 US contracted green bean (1.5%) and corn (13.4%) for processing output are both projected to be larger than 2008. The markets are steady. Prices FOB per case from ARA.
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Restaurant / Social
Community member Joechef2 writes...
I am thinking of opening a Restaurant/Social. It is set in a beautiful area with a waterfall outside dinning with seating up to 80. Plus there is a enclosed bar area whitch will be for members only. There is a monthly fee for members and there will be perks, but in this economy is it a good idea to open now? As far as rent option it is not expensive and there is a partner. Of course there is no real way to know what the income will be and I do understand risk factors. The reason I ask I would...
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Cherry Pie filling
Community member ramis writes...
Just trying to bounce some ideas to use up some cherry pie filling I have. Obviously cherry pie would be a good start.
I am looking for something a little more interesting that can be done that would not be so heavy on labor, and i can maybe make personal portions in a muffin tin.
Anyone have a good cherry muffin recipe that uses the canned stuff? ...
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Tips for New Restaurants and Startups.
Community member autoprt writes...
As a Restaurant Funding Specialist I receive many inquiries from people and its a little frustrating when they come without doing their homework. Hopefully this can help someone out there who is in this situation.
Investors and funding sources are very careful now. Deals are getting funded but you have to do your homework beforehand.
Someone involved must have restaurant experience. At least 6 months of ownership/management experience or have someone high in their crew who does...
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Most frequently used in stir-fry
I am a sweet, nutlike tuber of the genus Trapa. I am three or four sided and most popular in the cuisines of Japan, China, and Thailand. My roots are anchored to the bottom of lakes or ponds, hence my name. While my leaves float on the surface. I am formed at the bottom or on the middle. Although indigenous to Southeast Asia, I also grow prolifically in southern Europe and the eastern United States, particularly in the Potomac River, where my thick growth often hinders navigation. Rich in starch and mineral salts, I am most frequently used in stir-fry. I am also available canned (whole or sliced), or as a powder for flour. Because my seeds are often used for making rosaries, I am sometimes referred to as a "Jesuit's nut".
What am I?
The Food Quiz has is brought to you by Culinary Specialty Produce, a specialty produce broker that scours the world for the very best in specialty produce. Contact them at 908-789-4700 or by sending an email to info@culinaryproduce.com.
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