Popular poultry: US consumers willing to spend 73 percent more for “in-store” quality home delivered chicken, says Kerry report

24 May 2019 --- In the fast-growing market of foodservice chicken, Kerry Group has identified a key growth area in US consumers’ demands for restaurant-quality chicken in home delivered meals. The company spotlights consumers’ willingness to pay more for quality in delivered chicken, where temperature, appearance, texture and aroma are key drivers in meal appeal. In addition, Kerry emphasizes that differentiation is important in this “cluttered, non-brand-loyal environment.” As such, focus on the premiumization of “uniquely cravable” flavor profiles is essential for restaurateurs in this space.

This information was released in a new report entitled “Best-in-Class Chicken for Foodservice: In-store & Out for Delivery,” as part of the company’s proprietary foodservice delivery research. The analysis was issued in conjunction with the 2019 National Restaurant Association show at the McCormick Place in Chicago, Illinois, US. 

“With foodservice operators competing for their share of traffic, solving for taste, texture, appearance and other sensory attributes in fried chicken is crucial – both in-store and out for delivery,” says Michelle Wetzel, Senior Director RD&A – Meat Systems. “We know the craveability of a menu item drives consumer behavior, and at Kerry, we formulate with this in mind, using research to create best-in-class poultry products.”

Consumers willing to spend 73 percent more on better quality chicken
To understand how delivery impacts both the sensory attributes as well as the consumer appreciation of breaded poultry, Kerry evaluated the responses of 100 Milwaukee-area consumers for their preferences of freshly fried chicken tenders on-site at six national foodservice chains, and once again after 40 minutes of holding in a delivery simulation. Consumers who order delivery six or more times per month account for roughly 60 percent of the food delivery spendings in the industry, the company notes.

The report identifies these frequent user “frontrunners” as the “core delivery consumers,” who should be the primary target for restauranteurs menu development efforts. With frequent users already spending US$368 per month on delivery orders, compared to their peers at US$44-113 per month, operators risk diluting their delivery consumer base by not focusing on optimizing their menus for delivery hold times, Kerry highlights.

In almost all sensory areas, frontrunners are the consumers who are most critical of food quality, indicating room for improvement in temperature, look and appeal, texture and aroma compared to their peers. Frontrunners estimate they would spend 73 percent more money monthly if their delivery food arrived with “in-store” quality. This equals an additional US$283 monthly in spendings per frontrunner.

Poultry a popular protein on menus
Kerry’s report notes that poultry on menus continues to be a growth driver for operators, playing to consumers’ desire for better-for-you proteins and family-friendly innovation. With formats like tenders and breaded sandwiches leading the way in growth, the poultry category is underlined as a key area for delivery optimization. The report iterates that 14 percent of consumers surveyed have indicated that they have ordered fried chicken in the past month via delivery, with visual appearance and flavor of the chicken highlighted as key drivers.

New emerging breading types are starting to trend past the inception stage of the menu adoption cycle, as Kerry spotlights new menu call-outs of Katsu (Japanese breading with panko crumbs), Nashville Hot (a Tennessee favorite), Hand-Breaded (“back-of-the-house” breaded chicken), Encrusted (thick, hard coating, often with nuts), and Buttermilk Fried. The report makes clear that the premiumization trend is here to stay for poultry.

Consumers’ pain points with delivered food
In the Out for Delivery report, it was confirmed consumers are demanding affordable, quick and diverse menus, with the most popular menu items (excluding pizza and Asian cuisine) for delivery as burgers, fries, fried chicken and hot sandwiches.

However, when asked to identify important factors when deciding to order food delivery, consumers “overwhelmingly” responded that food quality, delivery time and craveability ranked higher in importance than the operator or restaurant brand.

To capture consumers’ attention, Kerry emphasizes four growth solutions in product development: coat your chicken lightly, dial up the spice, marinate with a “flavor-forward” marinade and be uniquely craveable using a differentiation strategy.

The company further notes that 36 percent of consumers would increase the number of deliveries by 5-10 times per month if they received in-store quality at home, and an additional 10 percent responded they would increase orders by more than 10 times per month.

The report builds on the company’s proprietary foodservice industry delivery research, “Out for Delivery: New Opportunities for the Foodservice Industry,” which identifies significant opportunities for foodservice operators when offering delivery, including delivering on sensory expectations.

FoodIngredientsFirst has reached out to Kerry to discuss further target areas in its research of new opportunities for the foodservice industry.

By Benjamin Ferrer