UPDATE: A recent study in the grocery space concluded what many already know: more than one third of consumers polled remain leery of the exact meaning of a product labeled as ‘natural.’ It’s no wonder – as restaurant chains as well as other food retailers have skirted using phrases that imply health claims in favor of buzz words such as “premium” or “wholesome.”
Organic. Sustainable. Local. Fresh. Healthy. In the restaurant world, these words mean different things, yet they are still lumped together under a general “green” umbrella. Many restaurant chains seem to be chasing these ideas wholesale. For restaurant companies to really differentiate themselves, they need to unpack these “green concepts” and figure out what their customers are truly willing to pay for. The best of intentions can lead to disastrous results, as Frito Lay recently realized. Sales of SunChips plummeted by more than 11% as customers responded negatively to new eco-friendly bags made of a material that was so loud, consumers likened it to a jet engine.
Before discussing further, we should say there are many good reasons restaurant companies may go in this direction: beliefs, PR, employee morale, etc. But as we think about measurement and analytics, we are primarily concerned about one dimension: what’s the impact on consumer sales and loyalty? (more…)