Report sheds light on where, what and how Americans eat and the effect on Main and Wall Streets.
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--What do 300 million Americans have in common? Eating. GE Capital Solutions, Franchise Finance---a leading financier to the restaurant franchise industry---recently unveiled its 17th annual Chain Restaurant Industry Review.
"The food services industry, which saw sales top $500 billion in the United States for the first time in 2006, provides a fascinating look into not only where and what we're eating, but how we're living our lives," says Kimberly Savilonis, VP Business Intelligence for GE Capital Solutions, Franchise Finance.
"The industry also feeds the economy so the trends have important implications for both Main Street and Wall Street," says Darren Kowalske, President and CEO of GE Capital Solutions, Franchise Finance. He also noted that the restaurant industry added 250,000 jobs each year for the last 10 years. "The industry experienced record activity for mergers, acquisitions and IPOs in 2006. These trends combined with other factors like rising costs in commercial real estate and gasoline have a ripple effect that cascades across the economy."
Some of the interesting facts and figures compiled in the 100-page report include:
Unlike previous generations, baby boomers are expected to have more active lifestyles in retirement, leaving them less time for meal preparation.
Since 2002, baby boomers without children have increased food and beverage spending at twice the rate of total category growth and on a per capita basis. (1)
People aged 55-64 spend just under $1,300 a year at restaurants, highest among household age groups. (2)
Shifts in population and double-digit increases in consumer buying power among major ethnic group have more American consumers eating ethnic cuisine. In 2006, more than a quarter of Americans reported eating ethnic food at least once a week, with more than 4 in 10 American adults eating at a Chinese restaurant within a 30-day time frame. (3)
The combined buying power of Asian, African and Hispanic Americans is projected to be $2.9 trillion in 2011, 352% higher than 1990. (4)
Americans are spending more time commuting, working and participating in other activities, leaving less time for cooking and eating. Nearly one-half (46%) of a household's food budget is spent on food prepared away from home. (5)
For the first time, consumers with higher incomes ($75K+) spent more on fast food than at full service restaurants--$796 versus $790 in 2006. (6)
Women are choosing fast food more often ... 16.2 times per month in 2006 compared to 14.3 in 2004. This trend is leading to more 'female-friendly' offerings like salads, yogurt and fruit cups. (7)
Consumers are turning more to the Internet to help them decide where and what to eat. More than 1 in 3 (35%) adults use the Internet to research restaurants they haven't patronized before, up from 13% in 1999. Approximately 13% place orders over the web and 11% make reservations, up from 3% for each in 1999. (8)
More than 1 in 2 (52%) consumers 34 and younger report visiting restaurant websites during the workday. (9)
The rise in energy prices led many consumers to change consumption habits. 3 in 4 consumers reported changing their purchasing behaviors in mid-2006, including visits to restaurants, due to rising gas prices. (10)
About GE Capital Solutions, Franchise Finance
GE Capital Solutions, Franchise Finance is a leading lender for the franchise finance market via direct sales and portfolio acquisition. With more than 20 years of experience and $11 billion in served assets, we serve more than 6,000 customers and more than 20,000 property locations, primarily in the restaurant, hospitality, branded beverage, power sports, and automotive after-market industries. We offer customers access to capital with a menu of products featuring flexible structuring, including financing for acquisitions, refinancing, construction of new units, and remodels for single- and multi-unit operators/chains. GE Capital Solutions provides leasing, lending, and capital investment products and services to help business customers grow. It has more than $100 billion in assets, serves more than a million clients around the world, and is headquartered in Danbury, Connecticut, USA. For more on GE Capital Solutions, go to www.ge.com/capitalsolutions. GE (NYSE: GE) is Imagination at Work --- a diversified technology, media and financial services company focused on solving some of the world's toughest problems.
1. Food Industry Report, 8/28/06
2. National Restaurant Association 2007 Forecast
3. Food Industry Report, 7/10/06; Food Institute Report, 9/11/06
4. Selig Foundation, "The Multi-Cultural Economy" 2005 & 2006 Editions
5. Food Industry Report, 6/5/06
6. NPD Group report from 10/23/06 article - "Premium products draw high-income consumers to QSR (Nations Restaurant News)
7. Sandleman & Associates study, referenced in Chicago Times article 4/26/06
8. National Restaurant Association 2007 Forecast;
9. American Express Market Brief by Technomic, 11/2006
10. Boston Consulting Group report referenced in a 12/2006 article - "A Fuel-ish Discussion" by David Asher (Newspaper Association of America)
Contacts
GE Capital Solutions
Stephen White, +1 203 749 6295
[email protected]
Stephen White