Teens look to spend, socialize at restaurants

MINNEAPOLIS —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

Teenagers not only are spending more, but they are also consistently looking to frequent brands where they can engage with friends socially, preferably at Starbucks, Chipotle and Chili’s, the survey found. And they are seeking value for their dollar more than in years past, as they are more aware than ever of the economic pressures on families today, the survey noted. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

“It’s exciting that the dollar spend was up sequentially…we would say it is probably a leading indicator of recovery,” said restaurant senior research analyst Nicole Miller Regan. “With higher unemployment than the national average and with what parents are giving to kids shifting, young teens are more responsible with their spending. The general consensus [at Piper Jaffray] is that Gen Y is very aware and very purposeful.” —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

Miller Regan said the brands that offer both a social experience and perceived value are gaining market share among the young demographic, which has considerable buying power. According to a Harris Poll, 13- to 21-year olds spent more than $120 billion in 2007. The group’s income is expected to grow through at least 2017, to about $3.5 trillion. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

The survey of 1,200 teens, with an average age of 16.3 years, was conducted at schools nationwide. It found teenagers are spending on average $14.51 per week at restaurants, up 15 percent from the same survey in the spring of this year, and up 6 percent from last fall. The latest spending average, however, is still about 5 percent below the spending levels recorded in the fall of 2007, prior to the recession’s onset. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

Regardless of how much teens spend, however, the importance of value is growing as a factor that determines where they dine out, the survey found. While taste and menu selection still rank as the factors having the greatest influence, value came in third in the latest survey, versus lower rankings of fifth and sixth in surveys taken in 2007 and 2008, respectively, prior to the deepest depths of the recession. Nutrition continued to rank last, as teens said it had the least influence on their dining decisions. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

“The perception of spending less further validates our thesis that consumers’ purchasing motivations continue to be value-driven, reflecting the challenging macroeconomic environment for the consumer today,” Miller Regan said. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

Starbucks, a brand not often thought of as a value provider, however, continued to rank as the most preferred restaurant destination among teens. The survey respondents were asked to write in favorite restaurants on blank lines, rather than choose them from a list. Following Starbucks on the school-based survey were Chipotle, Chili’s, Olive Garden and McDonald’s. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

Miller Regan said Starbucks offers teens a place where groups can gather and hang out, and still spend less than what they would pay elsewhere on a full dinner or lunch. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

“That’s more entertainment value—social networking, meeting and gathering—teenagers are not just [at Starbucks] to consume,” she said. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

Gaining market share in the latest school survey of teenagers was casual-dining brand Chili’s Grill & Bar, the 1,400-unit chain operated and franchised by Brinker International Inc. in Dallas. In previous surveys, Chili’s wasn’t able to crack the top three favorite brands, and now it is ranked as the group’s favorite casual-dining spot. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

Teens want taste, value and Starbucks

According to Chili’s senior director of marketing, Peter Wright, Chili’s has worked to brand itself as fun, energetic and value driven. Its recent deal highlighting three courses for two people for $20 has been a runaway success, he said, and teenagers especially enjoy it. The deal includes a shared appetizer, two entrées and a shared dessert. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

“This audience is social, they go out in groups,” Wright said. “It’s about the social experience as well as affordability, so this deal is perfect for them. The social nature of this offer hits well with the psychographic of this demographic.” —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

In addition, Chili’s was one of the early adopters of social media outlets like Myspace, Facebook and Twitter, Wright noted. And finally, Wright said, teenagers today are very focused on giving back through philanthropic efforts, much more so than previous generations. He said Chili’s work with St. Jude Children’s Research Hospital has garnered brand recognition among various communities through local fundraisers. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

The Olive Garden, a Darden Restaurants brand that teenagers also said they like to frequent, also works the community angle through contests and fundraisers. The chain recently kicked off its 14th annual Pasta Tales essay writing contest for students from first to 12th grade. Prizes include a trip to New York, savings bonds and dinners. Olive Garden’s Pasta for Pennies fundraising program, which benefits The Leukemia & Lymphoma Society’s School & Youth campaign, also has raised millions for research. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

“We look at this demographic as important,” said Chili’s Wright. “Obviously, if we develop a strong brand affinity now they will be the brand’s apostles in the future.” —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

The results of a separate online survey of 10,000 teens differed slightly, Piper Jaffray found. While the average age of the online respondents was similar, 16.2 years, the average household income was lower at $51,900, and the teens were still reining in spending. The online survey found teens now spending, on average, $9.33 per week, compared to $11.18 in the spring of this year and $10.84 in the fall of 2008. —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.

Starbucks was still the favorite brand of the online respondents, followed by Olive Garden, McDonald’s and Red Lobster, with Applebee’s and Chili’s tying for fifth place.— [email protected] —In what is seen as a leading indicator of an economic recovery, teens in households with an average income of $75,000 are spending more at restaurants for the first time since the start of the recession, according to an October survey by investment bank Piper Jaffray & Co.