CHICAGO — A new consumer survey by Technomic Inc. shows that bakery cafe concepts may be missing opportunities for growth.
That's true of supermarket in-store cafes and foodservice programs as well, industry sources told SN.
Technomic researchers noted that 57 percent of roughly 3,500 respondents had never been to a bakery cafe restaurant. A large percentage, 48%, said there is no bakery cafe in their area, but significantly, an additional 28 percent of these non-customers don't visit bakery cafes because they are not familiar with what food items these concepts offer.
“We expect pretty solid growth in the category to continue, based on several things,” Darren Tristano, executive vice president, Technomic Information Services, told SN last week.
“The popularity of coffee and other beverages is one thing that spells growth. Also, the concept is positioned to leverage the breakfast daypart.”
Since less than a quarter of respondents found anything negative to say about bakery cafes, it's consumers' lack of familiarity that could be hampering growth, researchers concluded. Access and awareness need to be ramped up, they said.
The bakery cafe format consumers were most aware of was Panera Bread. Indeed, 54% of survey respondents who said they'd visited a bakery cafe recently said it was Panera. Industry sources emphasized that Panera is ahead of the pack and is defining the concept.
“Panera is really the only well-established retailer in this space, and there are major markets that they are not in yet,” said Neil Stern, senior partner, McMillan Doolittle, a Chicago-based consulting firm. “The space will obviously grow, but the definition of a bakery cafe is not that tight,” Stern told SN last week. “Panera is really defining what the space is. Corner bakeries and others are in catch-up mode.”
Technomic confirmed that. Officials said that in consumers' minds, Panera Bread has defined the bakery cafe segment and set the standard for what other bakery cafe concepts should offer in terms of food, atmosphere and service.
LET IT BE KNOWN
Other bakery cafe concepts apparently aren't getting the word out about who they are.
“I'm not surprised by the Technomic findings,” said another consultant. “It's a communications issue,” said Howard Solganik, partner in Dayton, Ohio-based Culinary Resources with his sister, Carin Solganik.
“Unlike the fast-food chains, who clearly convey what they're offering — Whoppers, etc. — the bakery cafes aren't doing that,” he said.
“In fact, I can't think of one of their slogans. It's not even clear what their market position is, and that's true of supermarkets' cafes [and foodservice programs], too.”
Solganik explained that the undefined image of retailers' foodservice programs could account for the small percentage of customers who go to the deli or foodservice area.
“There's plenty of business out there, if you communicate what it is you're doing,” Solganik said.
Technomic's bakery cafe research revealed differences in expectations from one demographic group to another. Both women and younger consumers use bakery cafes not only as a place to eat but also as a place to socialize with friends. Due to the importance they place on the social aspects of bakery cafe concepts, these groups find amenities like soft music, fireplaces and comfortable armchairs more appealing than other demographic groups, researchers said.
Males and consumers with an annual household income of $100,000 or more find Wi-Fi access to be very appealing. Asian and Hispanic consumers generally place greater emphasis on family dining, which may be one reason why communal tables at bakery cafes were more appealing to these ethnic groups, researchers concluded.
Communal tables were also more appealing to consumers with an annual income of $25,000 or less.
