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All Back Issues » March/April 2007 Issue

Best Practices in Targeting Family Dining Occasions
David Henkes
David Henkes

In today’s climate, driving new, incremental business is critical. To counter traffic counts and same-store sales trends that remain flat (particularly in full-service restaurants), one popular technique to build sales is to focus on families. More specifically, this means having a kid-friendly establishment with a relevant menu.

Our recent “Understanding Kids’ Menus” report confirms the importance of a kid-friendly focus. Nearly 90 percent of parents with younger children (ranging from three to about 11) cite availability of a kids’ menu as a driving force in selecting a restaurant. This applies to both limited- and full-service venues. Once they reach their “tween” years, kids generally tend to order from the adult menu and kid-specific offerings become less important as a selection driver.

Somewhat surprisingly, full-service restaurant chains appear to have taken kids’ marketing to heart more than the fast-food players. Among the top 250 chains tracked by Technomic, 88 percent of full-service restaurants have a dedicated kids’ menu, versus 76 percent in limited service. Of course, it’s important to recognize that full-service restaurants have been harder hit by recent declines in comp-store sales and traffic, and they are the ones most in need of finding solutions to drive new business.

For hotels, having a kids’ menu may remove a “veto” vote and could provide some opportunity for incremental growth. Obviously, a hotel that caters more to a business crowd has less need than a property with a higher ratio of families as guests. But remember, meeting the needs of kids doesn’t apply only to restaurants. In hotels that don’t offer a kid-friendly dining environment, there may be an opportunity with the room service menu.

With this in mind, here are a couple “best practices” in building children’s menus:

Offer variety. Most kids’ menus still focus on the basics: pasta, chicken strips, macaroni and cheese, hot dogs, and hamburgers. However, some operators are adding other items, such as Mexican entrées, fish, shellfish, and different beef and pork items. While some of these may be oriented toward older kids, the fact is that kids of all ages today are more “food sophisticated” and worldly than ever before and appeal may be broader than you realize.

Don’t forget the beverage. Kids’ menus require a specific approach for kiddie beverage menus. An increasingly large number of parents (and kids) are more aware of the health impact of sugar and want to avoid soft drinks. Chains like McDonald's and Wendy’s now include the option of low-fat milk, low-fat chocolate milk, and, in some cases, juice for kids’ meals. Smoothies also appear to have steadily gained popularity since 2004. Bahama Breeze, Red Lobster, and Bugaboo Creek Steak House all feature the blended drinks.

Side dishes offered separately can raise check averages. While most operators still offer a “bundled” meal that includes sides, many restaurants (including most full-service restaurants) are taking the a la carte approach. Greater variety beyond french fries is also emerging. Remember, sides offer operators the chance to feature healthier items, like applesauce and vegetables.

Tiered kids’ menus work well. Though they might not be explicitly separated by age, some kids’ menus list options that appeal to kids at different age groups. Often items geared toward older children have a portion size closer to the adult menu and there is also more preparation involved. As a result, price points are higher.

Healthy options are increasingly important. More parents noted that they are looking for betterfor- you options on kids’ menus. Importantly, over 40 percent noted that a lack of healthy choices gives them a negative impression of the restaurant. This is especially true for parents of younger children.

We believe meeting the needs of children and marketing to families will only become more important in such a competitive market. As lodging restaurants increasingly compete against traditional restaurants, operators must evaluate the opportunities that a “family friendly focus” can create for their business.

David Henkes is a senior principal at Technomic, a Chicago-based consultancy focused on away-from-home eating and drinking. For more information,
contact David at 312-506-3927 or at dhenkes@technomic.com.