digital domination: tech's influence on mealtime decisions


Contents1. Embracing Technology

2. Smartphones: The New Grocery List

3. Cooking with Technology

4. Implications and Discussion

This white paper explores the following topics:


Consumers are embracing tech when making food decisions

Key Takeaways

of Americans say they are using technology to find restaurants and other food sources, make food decisions and help them cook.

50%

shsfoodthink.com ©2017 Sullivan Higdon & Sink. All rights reserved. The data in this report may be reproduced as long as it is cited: “Digital Domination,” Sullivan Higdon & Sink FoodThink, 2016.

39%

4

Mobile use is gaining popularity in retail

Key Takeaways

say they won’t go to the grocery store without their smartphones, especially Millennials at 53%.


Times are changing. So are food habits.

When it comes to food, Americans want a combination of simplicity and variety. That’s where technology comes into play, with nearly 40% of Americans saying that technology is changing their food habits (up from 33% in 2014).

Embracing Technology

Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Strongly disagree

12%

11%

25%

22%

31%

26%

14%

17%

18%

24%2014

2016

“Technology is changing my food habits.”

Q: How strongly do you agree or disagree with the following statements? (Strongly/Somewhat agree)


Moms and dads approve

Parents are more likely than non-parents to say that technology is changing their food habits. When engaging these consumers, food marketers should consider their increased time demands and growing desire for convenience.


44%

(118)Moms

47%

Index* (126)Dads



33%

(90)Non-Parents

*What’s an index?An index is a quick and easy way to see how the statistic for that consumer segment compares to the total responses. An index of 100 represents the average response. An index over 100 means that response is higher than average and below 100 means it is lower than average. For example, an index of 120 means that it is 20 percent more likely than average and an index of 80 means that it is 20 percent less likely than average.


Where to eat? Ask the internet.

When the time comes for consumers to venture out, they’re likely to seek recommendations on the internet. With online peer reviews and ads promoting the latest and greatest menu items, it’s no surprise that half of Americans say technology has impacted the way they find food.



Q: How strongly do you agree or disagree with the following statements?

Strongly agree

Somewhat agree

Neither agree nor disagree

Somewhat disagree

Strongly disagree

18%

32%27%

10%

13%


Technology: every cook’s sous chef

When consumers aren’t using the internet to find restaurants and other food sources, they’re bringing it into their kitchens. Half agree that they’re embracing technology to help with food decisions and cooking. Boomers are increasingly embracing technology when it comes to food decisions at 37%.


“I embrace using technology to help with food decisions and cooking.”


Total

Millennials

Boomers

48%

50%

68%

64%

34%

37%

2014

2016


Over the past two years, Boomers have continued to adopt technology at a steady rate, especially when it comes to mealtime. They’re more likely now than ever to agree that technology is changing their food habits (up 20% from 2014). And it doesn’t end there. Nearly half of them say they are finding more ideas online than anywhere else.

FOOD FOR THOUGHT

Boomers: the newest tech-savvy consumers

2014 2016

20% INCREASE FROM 2014

20%24%

“Technology has impacted the way I find restaurants and other sources of food.”



Top Media Sources and Fact-CheckingSmartphones: The New Grocery List

Browsing the web while browsing the aisles

Smartphones have become a vital part of daily life, and this is no exception when it comes to grocery shopping. Nearly 40% of consumers say they would never go to the grocery store without their mobile phone. Millennials, organic shoppers and parents are especially mobile dependent.

“I would never go to the grocery store without my mobile phone.”


Strongly agree

Somewhat agree

Neither agree nor disagree

Somewhat disagree

Strongly disagree

18%

21%

23%

12%

26%

Millennials Index* (138)

Organic Shoppers(136)

Parents(130)

*What’s an index?An index of 100 represents the average response. An index over 100 means that response is higher than average, and below 100 means it is less than average.

¹ Pew Research Center Survey, July 2015.



Phone dependence varies by store format

Mobile usage while grocery shopping is on the rise, but store format makes a difference. Nearly half (48%) of wholesale/club shoppers say they would never go to the grocery store without their phone. But when it comes to supermarkets, about one-third (36%) of shoppers say they won’t shop without their phone.

“I would never go to the grocery store without my mobile phone.”


Wholesale/Club Index* 123

Natural store 118

Supercenter 105

Total 100

Supermarket 92

48%

46%

41%

39%

36%




Grocery shopping has never been easier

Technology has changed grocery shopping to the extent that many consumers refuse to shop without their mobile phones. Shoppers can clip digital coupons while interacting with store websites and applications, as well as grocery shop online. The convenience of online grocery ordering is quickly drawing attention from young urbanites, suburban families, older singles and other consumers looking to remove shopping trips from their packed calendars. Americans agree that online grocery ordering saves them time (39%), saves them money (36%) and allows them to order in bulk (15%).1 Continued focus from food marketers is necessary to capitalize on the growing interest in online grocery ordering.

FOOD FOR THOUGHTFOOD FOR THOUGHT

Saves Time

39%Saves Money

36%Bulk Ordering

15%1 “The Online Grocery Shopper,” The Hartman Group, 2013.


Cooking with Technology

Recipes at hand: from pages to screensMore than half (55%) of consumers say they’re finding more cooking ideas online than anywhere else. The percentage of Americans using their phone as a recipe book has also increased, with 38% agreeing that they reference their phone more often than traditional recipe sources (up 36% from 2014).

Technology and food habits


Strongly agree Somewhat agree Neither agree nor disagree Somewhat disagree Strongly disagree

25% 30% 24% 9% 12%

18% 20% 22% 11% 29%

I get more cooking ideas online than

anywhere else

I reference my mobile phone more

than a cookbook



Cookbooks are here to stay, for someConvenience-driven consumers like Millennials and parents are more likely to use their mobile phones for recipes. On the other hand, Boomers and non-parents are less likely to use mobile recipes, opting for the traditional cookbook.

Likelihood to use mobile recipes (by segment)


MORE LIKELY TO USE MOBILE RECIPES

LESS LIKELY TO USE MOBILE RECIPES

Millennials Index* (153)Parents (134)

Boomers (44)Non-Parents (82)



Whether consumers prefer to find recipes on their phone or in a traditional cookbook, most (73%) agree that technology makes it easier to find recipes.

15


Finding recipes: easy as pie

“Technology has made it easier to find recipes.”


Parents Millennials Boomers Total Non-Parents

75%74% 73% 73%

71%

Index* 104

102100 100

98



Benchmarking food marketing efforts in today’s marketplace.

Embracing technology

Implications and Discussion

Consumers are taking advantage of technology to help with meal decisions. Make it easier for consumers by ensuring your brand has a strong online presence, is using the correct tools and is presenting relevant content.

When looking at your brand with a tech lens, ask your team the following questions to ensure you’re reaching your audience: 1. Which audience segment presents the greatest opportunity for our brand? 2. What is the current technological need of the consumer? Is it already satisfied by another platform (e.g., Open Table, Ibotta, etc.)? Or do weneed to create a new solution? 3. How do we measure success when evaluating our digital offerings? What key performance indicators should we be measuring?


The smartphone has become an extension of our hand when it comes to shopping. Consumers are utilizing their phones to create grocery lists and find products. Some formats, like club stores, have shoppers with a higher phone dependency.

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Smartphones: the new grocery list


As a grocery marketer, discuss the followingquestions with your team: 1. What is our shopper’s digital path-to-purchase? Are we set up to reach them at each point on their path? 2. How can we better equip our stores to enable easier tech usage for our customers while they’re shopping (e.g., free WiFi)?


Consumers are looking for recipes online, so give them what they want. Leveraging owned channels such as branded websites and social media to provide relevant recipe inspiration can help keep your brand top-of-mind when consumers make meal decisions.

As you evaluate current and potential digital offerings, consider the following: 1. How do our digital offerings make our customers’ lives easier? 2. How could we use our digital offerings togain better insight into what our customers want (i.e., user data)?

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Cooking with technology



About the study

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In early 2016, SHS conducted the latest round of its FoodThink research study monitoring how consumers think about what they eat and America’s relationship with food. After conducting its first study in 2012 and a second study in 2014, SHS continues to monitor and research various food topics.

The study was executed among 2,037 consumers across the country via an online email survey (confidence interval of +/-2.17% at a confidence level of 95%). Respondents had to be at least 18 years old and have joint or primary responsibility for the grocery and food decisions in their household. They came from a mix of demographic backgrounds and regions across the U.S. The study covered a wide range of topics, such as perceptions of food production, cooking trends and changing thoughts about food.


FOR MORE about Sullivan Higdon & Sink’s FoodThink study, please visit www.shsfoodthink.com

FOR CUSTOM REPORTS AND ANALYSIS, CONTACT Ali Sizemore Mahaffy, Co-Chief Executive Officer [email protected]

digital domination: tech's influence on mealtime decisions

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