Latino Purchasing Power


Recent studies show that Latino buying power hit just more than $1.3 trillion in the past year, which has made many in the full-service restaurant industry take notice and take action. At the same time, Latinos are already influencing dining habits of Americans.

According to the NPD Group, in 2013 Hispanic consumers accounted for 18 percent of traffic and 19 percent of dollars at quick serves, compared with only 12 percent of both traffic and percent of dollars at full-service counterparts. Warren Solochek, the NPD Group’s vice president of client services, says the lower numbers are partly because fewer full-service brands are directly targeting this segment with culturally relevant marketing campaigns.

“In general, Hispanics are much more inclined to go to quick-service restaurants, as full-service restaurants are way underdeveloped in meeting their needs,” Solochek says. “What we have seen in recent years is that their visits to the full-serve category are declining not growing.”

Industry experts agree that the most important way to reverse the trend is to minimize language issues. NPD data show that Hispanics rank full-service restaurants lower than non-Hispanics as it relates to service, which has a lot to do with language. The statistics also show that Spanish-oriented Hispanics rank accuracy lower at full-service restaurants for the same reason.

There are efforts to change this. Over the summer, Denny’s debuted a Latino Facebook page, an effort to reach the 20 percent of consumers who are Latino and make that demographic aware of the cultural transitions underway at the 24-hour chain. One post highlighted a Latino rapper busting rhymes about the signature Grand Slam breakfast.

“Not every Hispanic customer is fully fluent with English, and certainly, when you go to a restaurant and given the kind of questions people ask about food, there can be some difficulties in translation,” Solochek says. He suggests that restaurants include someone on the wait staff who speaks Spanish, particularly if the restaurant is in a heavily populated Latino city, or include more photos on the menu to depict dishes.

Another tip for attracting the Latino customers is to present opportunities for purchasing more sharable foods. Chef Sergio Remolina, director of Latin studies at the Culinary Institute of America, says Hispanics who visit full-service restaurants normally go in larger groups, with their entire families, and they like to share.

“Typically, these visits include younger kids and the extended family, and it’s easier to make that a more affordable occasion by having foods that are more sharable, as opposed to a single portion per person,” he says. “For someone going out with a large family, it can be an expensive way to eat, so they’re not going to do it very often. If they can buy and share together, it makes it easier to afford.”


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