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Affluent Consumers in the New Economy: Food and Foodservice
July 1, 2009
The economic turmoil that reached crisis level in fall 2008 has been a bull in the china
shop of American consumer behavior, even for a market as fundamental as food. Food
spending, fueled by price increases but dampened by consumer cutbacks, took on a
volatility that matched the chaotic economic trajectories of American consumers. Even
within the affluent cohort of upscale-to-affluent U.S. adults ($75K+ individuals; $100K+
households), as of first quarter 2009, nearly a fifth described themselves as significantly
worse off than they were a year ago, and nearly a fourth described themselves as
somewhat worse off..
Focusing on this upscale-to-affluent U.S. cohort, Affluent Consumers in the New
Economy: Food and Foodservice examines how responses to economic turmoil are
affecting consumer demand for food products and chain restaurant services. Notably,
for example, affluent consumers who have taken a financial hit are more likely to shop
for organic and natural foods, and are more sensitized to ethical consumerism issues. In
addition, affluent consumers whose financial situation has recently worsened or
improved show higher levels of health and nutrition consciousness, as well as a keener
taste for food adventure. In an era of widespread economic turmoil, such psychographic
responses to financial setback and financial recovery will shape and transform
consumer spending on food.
The effects of economic turmoil are being seen not only in which types of food products
consumers are buying, but in which retail channels and chains they are flocking to.
Although affluent consumers remain less likely than the rest of the population to shop at
Walmart supercenters, they are shifting to Walmart at above-average rates, making
supercenters an ever-bigger part of the equation for marketers of affluent foods. At the
same time, shopping patterns for Trader Joe’s and warehouse clubs show the
heightened potential for adventurous but value-priced store brands among the affluent
cohort.
The effects of economic turmoil are also presenting broadly felt and widely reported
challenges to the foodservice industry. Even within the current environment, however,
specific segments of affluent consumers are more receptive to healthy fast food and
more likely to find that fast food fits their current lifestyles. Therefore, the true task for
restaurants is to match supply to demand, rather than to create or maintain it.

2. Successful foodservice strategies must accommodate generationally and regionally
inflected economic contexts, food landscapes, nutritional psychographics, and
consumer lifestyles.
Overall, consumers who have been set back or thrust forward financially are more likely
to be thinking and rethinking about what they need, what they want, and how and where
best to find it. For marketing and customer communications, as discussed in this report,
more is now more.
Read an excerpt from this report below.
Report Methodology
This report is primarily based on original research and analysis. The analysis of affluent
consumer trends, demographics, and psychographics derives from custom extraction
and cross-tabulation of data collected by Experian Simmons (New York, NY) in its
Winter 2008/09 National Consumer Study (fielded from late July 2008 through late
March 2009), which is based on 13,128 U.S. adult respondents. In addition, this report
draws on recent Packaged Facts consumer market studies, as well as relevant data
from various government, business, and trade sources.
Additional Information
Market Insights: A Selection From The Report
Marketing in a Subprime Economy
In a down economy, consumer attention has gone up. As with the parallel case of retail
formats, the days when marketing messages commanded a captive audience are long
gone, and being cast deeper into oblivion with each turn of the screw in communication
technologies. But for the current period, at least, consumers have become more
attentive to their spending options, saving strategies, and product choices.
Coupon Use on the Rise
As discussed in Packaged Facts’ December 2008 report, The Couponing Consumer in
a Down Economy, coupon use is on the rise. The economic situation has sharpened
consumers’ focus on ways to get more value from purchases, and coupons are one
tried-and-true method. A 2008 poll by ICOM Information & Communications of more
than 1,500 U.S. shoppers found that 89% of respondents were either much more likely
or more likely to use coupons in the case of a recession. An August 2008 online poll by
Prospectiv of 1,386 consumers found that 72% were using more coupons than they did

3. six months ago, with the economic downturn being the top reason for doing so. A
February 2009 online poll of 4,000 nationally representative households by Retail
Forward found that 32% of shoppers are using coupons more frequently
(retailforward.com), while a May 2009 study of 1,225 adults by Ad-ology Research puts
the proportion at 40% (Advertising's Impact in a Soft Economy; www.ad-ology.net).
Thus, Inmar CMS Promotion Services data show coupon redemption increasing by 10%
in fourth quarter 2008 compared to fourth quarter 2007-the first jump in redemption
since the early 1900s (cms.inmar.com).
Affluent Consumers Migrating to the Internet
As discussed in Packaged Facts’ report on The Affluent Market in the U.S. (April 2007),
upscale consumers have skewed to something old, something new in media
consumption-to newspapers, magazines, and radio on the one hand, and to the Internet
on the other. They are less likely to depend on TV as a source of information and
entertainment, and more likely to multitask when they do watch television. However, as
evidenced by the financial woes of even venerable papers such as the Boston Herald
and the San Francisco Chronicle, and by...
TABLE OF CONTENTS
Chapter 1: Affluent Consumers in Context
Scope and Methodology of Report
The Economic Context
Figure 1-1: Quarterly Personal Consumption Expenditures on Food, 2006-2008
(billions of dollars and percent change)
Figure 1-2: Consumer Price Increases for Food, Food at Home, and Food Away
From Home: May 2008 through April 2009 (percent increase)
Figure 1-3: Consumer Distribution Based on Change in Financial Situation, Q3
2008 to Q1 2009 (percent of U.S. adults)
The Affluent Consumer
Figure 1-4: Affluent Consumers: Largest Demographic Blocs, Q3 2008 to Q1
2009 (percentages, number, and index)
Figure 1-5: Affluent Consumers: Top Demographic Indicators, Q3 2008 to Q1
2009 (percentages, number, and index)
The Affluent Consumer and Financial Change
Figure 1-6: Consumer Distribution by Economic Cohort and Change in Financial
Situation, Q3 2008 to Q1 2009 (percent)
Figure 1-7: Patterns by Age Bracket: Financially Worse Off Affluent Consumers,
Q3 2008 to Q1 2009 (percent and index)
Figure 1-8: Metro Area Patterns: Financially Worse Off Affluent Consumers, Q3
2008 to Q1 2009 (percent, number, and index)

4. Figure 1-9: Live Events Disproportionately Experienced by Worse Off Affluent
Consumers, Q3 2008 to Q1 2009 (percent, number, and index)
Figure 1-10: Selected Demographic Indicators: Financially Better Off Affluent
Consumers, 2008 to Q1 2009 (percent, number, and index)
Financial Change and Financial Insecurity
Figure 1-11: Consumer Distribution by Economic Cohort and Sense of Financial
Security, Q3 2008 to Q1 2009 (percent)
Figure 1-12: Affluent Consumer Indexes for Agreement or Disagreement with
Statement, “I Feel Financially Secure”: Selected Demographics, Q3 2008 to Q3
2009 (index)
Chapter 2: Food Psychographics & Financial Change
Grocery Spending Patterns and Skews
Figure 2-1: Average Weekly Household Grocery Expenditures: By Economic
Cohort, Q3 2008 to Q1 2009 (percent)
Figure 2-2: Average Weekly Grocery Shopping Expenditures Among Affluent
Consumers: By Change in Financial Situation, Q3 2008 to Q1 2009 (percent)
Financial Changes and Organic/Natural Foods
Figure 2-3: Agreement Among Affluent Consumers with Statement, “When
Shopping for Food, I Especially Look for Organic or Natural Foods”: Overall and
by Recent Change in Financial Situation, Q3 2008 to Q1 2009 (percent and
index)
Figure 2-4: Agreement Among Affluent Consumers with Statement, “When
Shopping for Food, I Especially Look for Organic or Natural Foods”: By Change
in Financial Situation, Q3 2008 to Q1 2009 (percent)
Financial Setback and Doing the Right Thing
Figure 2-5: Ethical Consumption Psychographics: Affluent Consumers by
Change in Financial Situation, Q3 2008 to Q1 2009 (percent)
Financial Changes and Health/Nutrition Consciousness
Figure 2-6: Agreement Among Affluent Consumers with Statement, “I Work at
Eating a Well-Balanced Diet”: Overall and by Recent Change in Financial
Situation, Q3 2008 to Q1 2009 (percent and index)
Figure 2-7: Agreement Among Affluent Consumers with Statement, “I Prefer
Foods Without Artificial Additives”: Overall and by Recent Change in Financial
Situation, Q3 2008 to Q1 2009 (percent and index)
Figure 2-8: Agreement Among Affluent Consumers with Statement, “I Think of
the Calories in What I Eat”: Overall and by Recent Change in Financial Situation,
Q3 2008 to Q1 2009 (percent and index)
Figure 2-9: Agreement Among Affluent Consumers with Statement, “I Am
Currently Dieting”: Overall and by Recent Change in Financial Situation, Q3 2008
to Q1 2009 (percent and index)
Figure 2-10: Agreement Among Affluent Consumers with Statement, “I Usually
Only Snack on Healthy Foods”: Overall and by Recent Change in Financial
Situation, Q3 2008 to Q1 2009 (percent and index)
Financial Changes and Food Adventure

5. Figure 2-11: Agreement Among Affluent Consumers with Statement, “I Enjoy
Eating Foreign Foods”: Overall and by Recent Change in Financial Situation, Q3
2008 to Q1 2009 (percent and index)
Figure 2-12: Agreement Among Affluent Consumers with Statement, “I Prefer
Foods Cooked With Lots of Spices”: Overall and by Recent Change in Financial
Situation, Q3 2008 to Q1 2009 (percent and index)
Figure 2-13: Agreement Among Affluent Consumers with Statement, “I Really
Enjoy Cooking”: Overall and by Recent Change in Financial Situation, Q3 2008
to Q1 2009 (percent and index)
Figure 2-14: Agreement Among Affluent Consumers with Statement, “I Look for
the Freshest Ingredients When I Cook”: Overall and by Recent Change in
Financial Situation, Q3 2008 to Q1 2009 (percent and index)
Figure 2-15: Agreement Among Affluent Consumers with Statement, “I Like to
Try New Recipes”: Overall and by Recent Change in Financial Situation, Q3
2008 to Q1 2009 (percent and index)
Figure 2-16: Agreement Among Affluent Consumers with Statement, “I Like to
Try New Drinks”: Overall and by Recent Change in Financial Situation, Q3 2008
to Q1 2009 (percent and index)
Figure 2-17: Agreement Among Affluent Consumers with Statement, “I’m Usually
The First to Try New Health Foods”: Overall and by Recent Change in Financial
Situation, Q3 2008 to Q1 2009 (percent and index)
Monthly Usage Patterns for Foodservice
Figure 2-18: Monthly Usage Patterns for Chain Fast Food and Family
Restaurants/Steakhouses: By Economic Cohort, Q3 2008 to Q1 2009 (percent)
Figure 2-19: Monthly Usage Patterns for Chain Fast Food and Family
Restaurants/Steakhouses Among Affluent Consumers: By Change in Financial
Situation, Q3 2008 to Q1 2009 (percent)
Fast Food Psychographics
Figure 2-20: Agreement Among Affluent Consumers with Statement, “Fast Food
Fits My Busy Lifestyle”: Overall and by Recent Change in Financial Situation, Q3
2008 to Q1 2009 (percent and index)
Figure 2-21: Agreement Among Affluent Consumers with Statement, “I Like the
Trend Toward Healthier Fast Food”: Overall and by Recent Change in Financial
Situation, Q3 2008 to Q1 2009 (percent and index)
Figure 2-22: Agreement With Statement, “I Prefer Fast Food to Home Cooking”:
By Economic Cohort, Q3 2008 to Q1 2009 (percent)
Figure 2-23: Agreement With Statement, “I Eating Fast Food Helps Me Stay
Within Budget”: By Economic Cohort, Q3 2008 to Q1 2009 (percent)
Chapter 3: Competitive Implications
Demand for More, not Less, from Groceries
Figure 3-1: Weekly Household Grocery Expenditures: Affluent Consumers, 2004
to Q1 2009 (percent)
Grocery Shopping Outside of Supermarkets
Figure 3-2a: Usage Rates for Selected Grocery Retail Channels and Chains:
Affluent Consumers, 2004 to Q1 2009 (percent)

6. Figure 3-2b: Usage Rates for Selected Grocery Retail Channels and Chains:
Other Consumers, 2004 to Q1 2009 (percent)
Figure 3-3: Affluent Consumer Usage Rates for Selected Grocery Retail
Channels and Chains: By Change in Financial Situation, Q3 2008 to Q1 2009
(percent)
More Openings for Store-Bought Meals
Figure 3-4: Share of Frequent Users of Store Meals: Affluent vs. Other
Consumers, 2004 to Q1 2009 (percent)
Restaurants Fight the Home Court Advantage
Figure 3-5: Use of Chain Restaurants: Affluent Consumers vs. Other Consumers,
Q3 2008 to Q1 2009 (percent)
Figure 3-6: Percent Agreeing With Selected Fast Food Psychographic
Statements: By Economic Cohort, Q3 2008 to Q1 2009 (percent)
Figure 3-7: Affluent Consumer Indexes for Agreement With Survey Statement, “I
Like Trend Toward Healthier Fast Food”: By Selected Age and Regional
Demographics, Q3 2008 to Q1 2009 (index)
Marketing in a Subprime Economy
Coupon Use on the Rise
Figure 3-8: Use of Coupons for Food Spending: Affluent vs. Other Consumers,
Q3 2008 to Q1 2009 (percent)
Figure 3-9: Use of Coupons for Food Spending: Affluent Consumers by Change
in Financial Situation, Q3 2008 to Q1 2009 (percent)
Affluent Consumers Migrating to the Internet
Figure 3-10a: Shopping-Related Use of the Internet: Affluent Consumers, 2004 to
Q1 2009 (percent)
Figure 3-10b: Shopping-Related Use of the Internet: Other Consumers, 2004 to
Q1 2009 (percent)
Figure 3-11: Shopping-Related Use of the Internet: Affluent Consumers by
Change in Financial Situation, Q3 2008 to Q1 2009 (percent)
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