McDonald's USA has been named the National Hockey League's official quick-service restaurant (QSR) in the United States. McDonald's is also the NHL's official QSR in Canada, and the company already has local relationships with 14 NHL teams. McDonald's will begin the activity around the sponsorship with the Bridgestone NHL Winter Classic 2009, and then the NHL All-Star Game in Montreal. The company says it has also bought advertising on NHL Network and NHL.com, as well as on NBC and Versus. As part of its activation at the Bridgestone NHL Winter Classic 2009, at Chicago's Wrigley Field, McDonald's will give away $5 McCafé-themed Arch Cards to fans seated in a select section of the park during intermission. The league will also have a fan event called "NHL Winter Classic Spectator Plaza" beyond the game field. The free outdoor hockey fan event will comprise branded events from sponsors: Bud Light will sponsor a food and beverage venue; Honda will showcase the Honda Ridgeline truck and Pilot SUV; and Verizon Wireless will have a hockey-goalie video competition the winners of which will be shown on giant screen during the Winter Classic game. McDonald's also will be part of the 2009 NHL All-Star Game in Montreal and a mid-game event during the match called the Honda NHL SuperSkills Competition, where McDonald's will serve as presenting sponsor of the shooting accuracy contest. In addition, McDonald's has secured rights as the Official QSR of USA Hockey and has a partnership with Hockey Canada. The NHL Foundation says it will donate from $200 up to $10,000 to Ronald McDonald House Charities for every shot on goal during the game between the Chicago Blackhawks and Detroit Red Wings on New Year's Day. Honda, the official vehicle of the NHL, will also donate a 2009 Honda Pilot to a Ronald McDonald House in the city of the winning team. McDonald's--which has about 19% share of the QSR segment--posted a 7.7% improvement in global sales last month, with sales in the U.S. up 4.5% and sales in Europe up 7.8%
Although the Detroit Lions are not in the car business, the team's failure to win a single game--a first in NFL history--could be a metaphor for the auto industry, and not just the ones in Detroit. Toyota, shaping up to be the top-selling automaker in the U.S. for 2008, has announced its first operating loss since FDR's second term. Just how bad will 2008 turn out to be? Auto research and shopping site Edmunds.com is predicting that total 2008 sales will be just over 13 million--a decrease of almost three million, or 18%, from 2007. Edmunds says sales will be 852,000 units--a 14.6% improvement over November, but a 38.4% decrease from December 2007. And the firm points out that the versus-November improvements are well below the typical 18% auto-sales boost that December has over November. "Despite the unit sales increase from November, December's expected 9.8 million [seasonally adjusted annual rate] will be the lowest of the year," said Jesse Toprak, executive director of industry analysis for Edmunds.com. "As questions about the economy remain unanswered, many consumers are reluctant to respond to the incredibly generous deals available on new cars." Edmunds says December sales will be off 38.4% versus December of last year. Of the top six automakers in the U.S., Chrysler will see the biggest decline, with sales off 45.6% versus the month last year. Ford sales will be off 33.8% and GM's sales nearly 40%, per Edmunds. Honda's sales will have dropped 37.7%, Nissan's 42.1%, and Toyota's 38.8% versus December last year. Still, domestic market share will grab back a sliver of share lost last month. Edmunds says that Chrysler, Ford and GM domestic nameplates will be 51%, down from 51.9% in December last year but up from 48.2% last month. Edmunds.com predicts that because of steep declines in gasoline prices and huge deals, SUVs and trucks will for the first time in nine months outsell cars.
The holiday season is generally time for people to pack on pounds, but Humana is hoping that some online diversions--one game and one Facebook application--will remind people to watch what they eat this season. "We wanted to use game technology to make health content a little more fun and to expose people to look at health content in a more fun ways," Paul Puopolo, a director at Human's Innovation Center, tells Marketing Daily. "We felt it was important for people to remember--particularly around the holidays--there's some things to think about in the decisions that we make and how they impact our health." One game, the "Freewheelin' Cycle Challenge," is inspired by the company's bike-sharing program. In the online game, users race against virtual opponents--such as a cheerleader or Marine drill sergeant--in a bicycle race. Energy and speed are gained by capturing nutritious snacks while running over junk food. The game is available at www.humanagames.com, a Web site set up in May by the health insurance company as a way to explore how to use games and technology to further messages of health, Puopolo says. The game is being promoted through information and blogs on popular casual gaming sites, and can be emailed for maximum viral effect. "We're using the power of social networking to promote the games," Puopolo says. The other application, available via Facebook," is called "The Battle of the Bulge." Through the social networking site, users answer a few questions and are assigned a virtual waistline. Through the Facebook network, other users can "fling fat" at you, which would expand your waistline and lead to a possible online heart attack. Answering health-related questions correctly can shrink the size of the virtual waistline and enable you to throw fat at your friends. "It's a fun way to learn about some of the health things you might not have already been aware of when it comes to food choices and health," Puopolo says. "And it leverages the competitive aspect of the social networking site that is popular."
Total U.S. restaurant sales are expected to grow at a modest 2.5% to $566 billion next year--and when the effects of 3.6% menu pricing inflation are backed out, this translates to a decline of 1%, according to the National Restaurant Association's 2009 industry forecast. This will come on top of a difficult 2008. While the association estimates 3.3% nominal sales growth for this year, its revised numbers put inflation-adjusted sales at $566 billion, a decline of 1%. 2009 sales for full-service restaurants are projected to gain just 1% to reach $182.9 billion. However, quick-serves will continue their relative advantage in attracting financially challenged consumers, seeing growth of 4% to reach $163.8 billion. While the industry is "experiencing unprecedented challenges due to the economic recession and elevated food prices," association President/CEO Dawn Sweeney stressed its innovation and responsiveness to the needs of budget-conscious consumers--who are expected to spend nearly half of their food budgets in restaurants in 2009. Restaurant operators are already swiftly adjusting their strategies and practices to reflect the now more "risk-averse" mentality of U.S. consumers, and they will continue to evolve rapidly, said SVP of research and information services Hudson Riehle during a Q&A at Friday's 2009 Outlook press conference. While the association expects consumers to revert to some degree to pre-recession restaurant behaviors when the economy improves, he acknowledged that this recession is very likely to result in fundamental, long-term changes in behaviors and attitudes that will be reflected in restaurant patronage patterns. As for the present, consumers are torn between wanting to eat out more and the need to stretch budgets. The association's recent surveys show adults buying meals or snacks from restaurants 5.8 times per week, on average. Nearly half (45%) indicate that restaurants are an "essential" part of their lifestyles; one-third say they're not eating out as often as they'd like; and 35% say that they're not buying take-out or having restaurant food delivered as often as they'd like on a weekly basis. Furthermore, nearly seven in 10 agree that in-restaurant meals and take-out/deliveries make life easier for families with children, and eight in 10 say eating out enables socializing and is a better use of their leisure time than cooking at home. At the same time, "nearly all" adults surveyed also confirmed that they are more worried about the economy than they were a year ago. And as Riehle noted, while the recent drop in gas prices is obviously a positive factor for the industry because it frees up some dollars for restaurant spending, "jobs are even more important." No surprise, then, that 36% of quick-serve restaurant operators and 16% of casual-dining operators surveyed cited an expanded focus on delivering value as a top priority for 2009. Maintaining competitive pricing and menu/service offerings in the now hyper-competitive climate is paramount, so operators must achieve needed operational cost savings in ways that do not detract from consumers' "dining experience." Individual restaurant performance will continue to vary widely in 20090--reflecting not only format, but operating models, costs, menus and geographic location. While the overall economy now appears to be heading in a deflationary direction, restaurants will continue to experience some wholesale food pricing pressure, and the degree will depend on which types of foods are emphasized in their menus, Riehle pointed out. Varying economic and demographic trends within regions, states and metro areas always play a critical role in restaurant performance variations, and that impact is intensified in a recession. On a state basis as ranked by rate of sales growth, the leaders in 2009 will be Texas (4% to $35.0 billion), Nevada (3.5% to $5.2 billion), Colorado (3.4% to $8.4 billion), New Mexico (3.3% to $2.7 billion) and Arizona (3.2% to $8.7 billion). By sales volume, the leaders will be California ($56.2 billion), Texas ($35.0 billion), New York ($27.8 billion), Florida ($27 billion) and Illinois ($18.8 billion). In terms of restaurant job expansion, Texas, Nevada and Florida are expected to grow the most rapidly, showing a 23% workforce increase between 2009 and 2019 compared to projected growth of 14% for the industry nationwide. That 14% growth exceeds projected growth for the U.S. population, and will represent 1.8 million new jobs over the next 10 years, bringing the industry's total workforce to 14.8 million by 2019. In 2008, the industry's employment growth "far outpaced" that of the overall economy (for the ninth consecutive year) despite "several months of modest industry job losses," according to the association. The 2009 total industry workforce estimate of 13 million will represent 9% of total U.S. jobs. However, the industry faces a growing challenge in meeting its workforce needs because of the slowing growth in the population of U.S. teens and young adults who have been restaurants' dominant waitstaff workforce pool.
Restaurants have an overflowing plate of objectives for 2009. In addition to a core focus on delivering ever more value and convenience, they will be expanding healthy kids' meals, locally sourced menu options and sustainability initiatives, according to National Restaurant Association survey findings included in the association's 2009 industry forecast. Quick-serve operators ranked healthy kids' meal options as the top food trend in their segment for 2009. In a separate "what's hot" survey of more than 1,600 American Culinary Federation member chefs, nutritionally balanced children's dishes came in fourth among the 200-plus culinary items listed, and fruit/vegetable side items for kids ranked sixth. Adults also want healthier options, of course. In the association's consumer surveys, three in four adults said that compared to two years ago, they are more focused now on trying to eat healthier at restaurants. Nearly three in 10 (27%) said they have gone online to search for nutrition information about restaurant food--up from 24% a year ago. Chefs plan to deliver on the health front: Those surveyed ranked smaller dishes, fish and gluten-free/allergy-conscious meals among the top-20 hottest food items. Overall, chefs ranked nutrition/health eleventh among menu trends for the year ahead. Chefs ranked locally sourced produce as the #1 menu trend, and both consumers and restaurant operators confirmed its importance. Seventy percent of adults said that they are more likely to visit a restaurant that offers locally produced food items. Fully 89% of fine-dining operators now serve locally sourced items, and nine in 10 believe demand for locally sourced items will grow in their segment in the future. Among quick-serve operators, three in 10 serve locally sourced items and nearly half believe these will be more popular going forward. On the sustainability front, about four in 10 full-service operators and nearly three in 10 quick-serve operators say they plan to devote more of their 2009 budgets to green initiatives. This dovetails with consumer data: 44% of restaurant patrons surveyed said they are likely to make a restaurant choice based on restaurants' energy and water conservation practices.
Consumers ranked Southwest Airlines as the top domestic airline in providing value for their dollars, according to the latest BrandIndex scores from research firm YouGovPolimetrix. Virgin Atlantic led the rankings for international airlines, Courtyard by Marriott for non-luxury hotels, and Hyatt Hotels & Resorts for luxury hotels. The lowest-ranking brands in each category were United Airlines, Aeromexico, Motel 6 and W Hotels. BrandIndex also ranked buzz for each brand by asking consumers if they had heard anything positive or negative about them in the preceding two weeks. The two top-valued airlines also received the most positive buzz, but the top hotels buzz-wise were Holiday Inn in non-luxury and Hilton in luxury. The most negative buzz came from US Airways, Air France, Motel 6 and Omni Hotels. BrandIndex derives brand scores from 100 to -100 by subtracting negative feedback from positive. In this respect, Southwest nabbed a 40.0 value ranking--flying well above No. 2 JetBlue (16.9), which itself was miles ahead of No. 3 AirTran (3.0). In buzz, Southwest also soared, with a 30.6 score vs. JetBlue's 8.9 and Continental's 2.4. Scores were much lower in general for the international airlines, with Virgin only earning a 5.4 in value (over Lufthansa's 2.6) and a 4.8 in buzz (over British Airways' 4.5). The hotel races were much tighter. For the non-luxury brands, less than five points separated the top six value-wise, with Courtyard by Marriott nabbing 27.8, its sister Marriott chain, 27.4; Comfort Inn, 27.2; Holiday Inn, 26.0; Best Western, 25.8, and Hampton Inn, 23.3. In buzz, Holiday Inn's 18.7 was followed closely by Marriott's 18.5. In luxury hotels, W was the only chain of nine surveyed to have a negative value score, with Hyatt's 13.4 followed by Hilton' 12.9, Westin's 9.5 and Windham's 8.3. In buzz, nobody came up negative, with Hilton's 11.2 leading Ritz-Carlton's 9.6, Hyatt's 8.1, and Four Seasons' 7.7. BrandIndex interviews a sample of 5,000 U.S. consumers, 18+ every day, with respondents drawn from an online panel of 1.4 million people. The latest travel brand results were based on figures as of Dec. 8.
Top 10 DMAs that are home to adults who bought fine jewelry in the past 12 months: 1 Harlingen/ Weslaco/ Brownsville/ McAllen, Texas 2 Norfolk/ Portsmouth/ Newport News, Va. 3 Richmond/ Petersburg, Va. 4 Baltimore 5 Chicago 6 Orlando/ Daytona Beach/ Melbourne, Fla. 7 Cleveland/ Akron (Canton), Ohio 8 Philadelphia 9 Memphis, Tenn. 10 Columbus, Ohio Source: MRI's Market-by-Market study; based on Top 100 DMAs. www.mediamark.com