FSR November 2022

FirstCourse

including McDonald’s, Wendy’s, Chick fil-A, and Taco Bell, were cited as favor ites, opportunities abound for full-ser vice restaurants. Last year, data from The NPD Group indicated that since Q2 2020, Hispanic spending at sit-down establishments had surpassed the amount spent at limited-service ones. And as of 2020, Latino consumers accounted for an annual average of 9.8 billion visits— representing about a quarter of total restaurant foot traffic. But in order to engage with these communities, operators must first understand that Hispanic Americans are far from a monolith. “Many brands are missing out on a huge market opportunity by not know ing how to connect with this expanding and diverse population,” wrote Gerry Ramirez, vice president of partnership development at digital media firm My Code, in an opinion piece for AdAge . The Numerator survey didn’t delve into country-specific characteristics, but it did distinguish between larger regions. For example, consumers of South American heritage were more likely to seek out deals, while those of North and Central American descent were 40 and 30 percent, respectively, more likely to make impulse purchases. Still, building long-term relation ships goes beyond discounts and deals. Fifty-eight percent of Hispanic house holds report their cultural heritage is central to their identity—this com pared to 52 percent of Black consum ers, 47 percent of Asian consumers, and 27 percent of white consumers. Experts advise brands to be inten tional in their outreach, warning that consumers will see through marketing attempts that are mere lip service. “Major brands try to do these things without really attempting to under stand our diverse culture, and they often miss the mark,” Trinidad Aguierre, a Hispanic marketing consultant, told NPR in September. “If you’re going to mess up, don’t do it. But if you’re going to attempt it and do it right, it’s going to pay dividends.”

BAR BACK THE IS

EVEN RAMPANT INFLATION isn’t putting a damper on consumers’ eagerness to clink glasses away from home. A September report by data and research firm CGA by NielsenIQ found that nearly half of all consumers surveyed planned to go out for a drink within the next two weeks. Forty-six percent said they haven’t changed their on-premises spend ing habits, and another 32 percent reported they were spending more (due in part to higher F&B prices but also celebratory occasions). CGA also found that imbibers split their alcohol consumption 50/50 between on- and o -premises, with the two channels influencing one another. Forty-two per cent of consumers said they’d try new drinks o - site, and one out of two reported that experiences at restaurants and bars prompted them to buy cer tain drinks for at-home consumption.

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FSRMAGAZINE .COM

NOVEMBER 2022