cheese sauce category insights · team and a foodservice customer at the start of a project. afp...

CHEESE SAUCE CATEGORY INSIGHTS

A Report on Current Cheese Sauce Trends, Insights and Menu Items

Cheese sauce is primarily found at traditional casual dining restaurants.

TABLE OF CONTENTSCheese Sauce on the Menu . . . . . . . . . . . . .2

Fastest Growing Menu Items . . . . . . . . . . . . . .4

What's on the Menu? . . . . . . . . . . . . . . . . . . .6

Boost Your Profitability . . . . . . . . . . . . . . . . . . .8

Innovating Together . . . . . . . . . . . . . . . . . . . .10

Product Development Process . . . . . . . . . . .12

Let's Talk . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

With a number of flavor options and applications, cheese sauce

can complement a variety of dishes. It can be used to create

menu items and LTOs while addressing consumer preferences and

increasing menu item profitability.

This report looks at current trends around cheese sauce

and provides actionable insights that can benefit

your menu, your operation and your

culinary partnerships.

Cheese sauces are most commonly featured on menus at

restaurants with varied menus, followed by Mexican cuisine.

RESTAURANTS BY SEGMENT (2018)1

BY CUISINE TYPE (2018)1

CHEESE SAUCE ON THE MENU

2 3

Traditional Casual Dining — 43%

Fast Casual — 14%

Quick Service — 13%

Contemporary Casual Dining — 11%

Midscale — 8%

Food Trucks — 5%

Upscale Casual Dining — 4%

Fine Dining — 2%


Fast Casual — 14%



Midscale — 8%

Food Trucks — 5%


Fine Dining — 2%


Fast Casual — 14%



Midscale — 8%

Food Trucks — 5%


Fine Dining — 2%

26% — Varied Menu

19% — Mexican

7% — Family Style

7% — Sports Bar

6% — Pizza

6% — Specialty

5% — Sandwich

5% — Steak

5% — Italian/Pizza

5% — Other

4% — Burger

3% — Seafood

2% — Family Casual

26% — Varied Menu

19% — Mexican

7% — Family Style

7% — Sports Bar

6% — Pizza

6% — Specialty

5% — Sandwich

5% — Steak


5% — Other

4% — Burger

3% — Seafood


26% — Varied Menu

19% — Mexican

7% — Family Style

7% — Sports Bar

6% — Pizza

6% — Specialty

5% — Sandwich

5% — Steak


5% — Other

4% — Burger

3% — Seafood


LEADING CHEESE SAUCE VARIETIES BY MENU INCIDENCE (2018)2

QUESO 1,049

CHEDDAR 313

MONTEREY JACK107

QUESO BLANCO83

BLUE CHEESE69

TREND WATCH

FLAVOR TRENDS5

• Ethnic cuisines (Hispanic, Asian, Indian)

• Sweet & savory mashups

• Spicy and specific pepper flavors

• Veggies, Herbs

CONSUMER TRENDS• 49% of consumers say they’d be likely to try

new flavors on burgers2

• 66% of consumers would like restaurants to

offer more ethnic fare on the menu3

• 65% of consumers under 35 order snacks from

the appetizer section when dining out4

Top Menu InstancesCheese Dips

Burrito/Chimichanga

Chicken/Cheese/Beef Nachos

Fastest Growing Menu Items 2017–18 Fastest Growing Menu Items 2017–18

Steak P

izza

Specia

lty Fr

ies

Specia

lty A

pp/Sta

rter

Specia

lty C

hicke

n Dish

Casual D

ining Resta

urants

Mexic

an Bowl

Kids’

Taco D

ish

Chili Con Q

ueso

Burrito

/Chim

ichanga

Fast

Casual R

estaura

nts

Chicke

n Sandwic

h/Wra

p

Macaro

ni and C

heese

Specia

lty Fr

ies

Cheese Fr

ies

QSR

s

Year over Year Growth in Menu Mentions (2017–2018)2

FASTEST GROWING CHEESE SAUCE APPLICATIONS

Top Menu InstancesMacaroni & Cheese

Kids Macaroni & Cheese

Chicken/Cheese/Beef Nachos

QUESO SAUCE APPLICATIONS AT QSRS2CHEDDAR CHEESE SAUCE APPLICATIONS AT QSRS2

Specia

lty B

urgers

Side o

f Sauce

Macaro

ni and C

heese

+33.3% +16.7% +12.5%

Tate

r Tots

Kids T

aco Dish

Side o

f Sauce

+33.3% +30.0% +23.1%

4 5

1 2018 Technomic Data2 Base: 1500 Operators; 2018 Technomic, MenuMonitor3 Technomic’s 2017 Flavor Consumer Trend Report4 Q2 2018 MenuMonitor, 2018 Snacking Consumer Trend Report5 Technomic lnc. (2018). Flavor Consumer Trend Report

WHAT’S NEWON THE MENU?Visit afpllc.com to view all of our featured recipes for even more menu inspiration.

TYPE OF DISH?

Savory

BREAKFAST OR DESSERT?

SERVING SIZE?

BREAKFAST?

VEGETARIAN?

Ch

ee

sy Sausage Breakfast Pizza

Sweet

Family Style

Individual Servings

Ch

ed

da

r Apple Soup

Ba

ked

Lobster Monterey Jack Cheese S

au

ce

'N

Pe

nn

e

Ch

ee

sy Queso Blanco Fruit Blintz

Fruit & Queso Blanco Stuffed F

renc

h To

ast

Queso Blanco Apple Desse

rt St

rom

bo

li

6 7

Let’s face it — everything’s better with cheese!

According to Datassential SCORES1, nearly 85% of

craveable dishes feature cheese. And one AFP

customer has seen this statistic in action; 80% of their

French fry orders are cheese fry orders!

Beyond traditional French fries, cheese sauce can be

paired with a variety of dishes to create unique and

memorable menu items:

• Pretzels and breadsticks

• Potatoes — tots, wedges, chips, baked potatoes,

mashed potatoes, etc.

• Flatbreads

• Tortilla chips and nachos

• Sliders

Cheese sauces are generally used more as a dip

or topping than an ingredient. Cheese fries are an

example of a way for an operator to offer a slight

upgrade on an already profitable menu item. Adding

cheese sauce can allow for a $1.50-$2 upcharge,

which is a 25-30% COG with no additional label

required. This income is in addition to the profit margin

the operator is already getting with their fries.

Here is an example from a traditional dining

restaurant, using estimated product costs:

PRICE PREMIUMIZATION ANALYSIS2

A variety of items offer a price premium when cheese

sauce is included.

BOOST YOUR PROFITABILITY

WITH CHEESE SAUCE

Steak Burger +$9.41

Burger Value Meals +$8.46

Torta +$8.43

Chili/Chili Cheese Burger +$5.76

Hot Dog +$4.72

Specialty Mexican App/Starter +$3.35

Jalapeño Poppers +$3.34

Empanada +$3.20

Specialty App/Starter +$2.95

Tamale +$2.71

Garden/Veggie Burger +$2.71

Tostada +$2.22

Seasoned/Herb Fries +$2.20

Chili/Chili Cheese Fries +$2.18

Specialty Fries +$2.11

Quesadilla +$1.89

Brisket Sandwich +$1.61

1 does not include desserts, breakfast pastries or beverages2 Technomic, MenuMonitor

POTATO CHIPS AND CHEESE SAUCE

Cost to consumerBase price for potato chips (4 oz. serving) . . . . . . $3.79Cost to add on cheese sauce (2 oz. serving) . . . $0.60

Menu price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.39

Cost to operatorPotatoes . . . . . . . . . . . . . . . . . . . . . . . $0.10/oz. serving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.40 totalCheese . . . . . . . . . . . . . . . . . . . . . . . . $0.10/oz. serving. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.20 total

Product cost for operator . . . . . . . . . . . . . . . . . . . . $0.60

Profitability (Menu price - Product cost)

As you can see, cheese sauce can be a profitable

add-on for operations, while incurring minimal

labor and equipment costs.

So, how do you promote cheese sauce offerings to

encourage sales? Here are a few tips:

• Cheese sauce should be merchandised in

its application, with an appearance of an

abundance of sauce, even if the serving size is

only 2 oz.

• Test consumers’ appetite for cheese sauce by

offering a LTO or special promotion.

• Cheese sauce appeals to a variety of ages, so

promoting it in several different places on the

menu increases likelihood of order. Consider it

for appetizers, sides, children’s menu items and

entrees, or as a special add-on.

Adding cheese sauce to your operation’s menu

could lead to new dishes or refresh existing items

— all while addressing consumer tastes and

increasing profitability.$3.79 (86% MARGIN)

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INNOVATING TOGETHER:OUR PRODUCT DEVELOPMENT PROCESS

AFP:Thanks for that refresher. We’ve kept your requirements

in mind and will present options that not only meet

your profitability and timeline goals, but your flavor,

texture and appearance preferences as well.

CUSTOMER:Those are all important factors. Our brand is known

for high-quality menu items while being innovative in

the fast casual space, so we want any LTOs to reflect

that positioning. Also, we tend to start with LTOs with

a new supplier so that we can test a partner without

impacting our whole supply chain.

AFP:That’s a good point. One great thing about AFP is

that we are own backup supplier, as we have multiple

lines across multiple plants. In an emergency AFP

can provide continuity of supply because we

have three manufacturing facilities with duplicate

production lines.

CUSTOMER:Excellent. Will you walk us through what we can

expect in the product development process?

AFP:After the initial product ideation, the project is

reviewed for production feasibility and timing

requirements as well as a financial analysis to

determine an estimated price range. With estimated

pricing approval by the customer, the AFP team

begins product development.

CUSTOMER:Will we have the opportunity to review the product

again after giving approval to move forward?

AFP:Absolutely. Once we receive approval, we move

forward with the benchtop process. The initial

benchtops are sent to the customer, feedback is

reviewed, and the product is tweaked, if necessary. We

continue to collaborate back and forth until

customer approval is received. Then we move into

industrial trials.

CUSTOMER:Can you tell us a little more about the industrial trials?

AFP:Sure. With the first industrial trial, the product is sent to

the customer for approval and used for accelerated

shelf life studies. The second industrial trial is a

product run. We require these two industrial trials to be

successfully completed before product is released for

sale. Our final step is receiving the purchase order and

shipping out the product.

CUSTOMER:Seems like a thorough process that allows for

customer feedback and input along the way. What

else sets you apart?

AFP:We approach our products from a culinary

perspective, resulting in products that taste closer

to homemade than our competitors, whose cheese

sauces often have a “fake cheese” flavor profile. AFP’s

R&D team consists of scientists and culinary experts

only working with aseptic systems, so their expertise

level is higher than their competitive counterparts.

Additionally, our size gives us economies of scale with

allows us to offer superior price points.

CUSTOMER:That validates the research we did on AFP following

a conversation we had with one of your salespeople.

We’re even more excited to get started on this project

with your team.

AFP:That’s great to hear. Now, onto the fun part – menu

ideas and some product sampling! Who’d like to try a

turkey burger slider topped with guacamole and our

Queso Blanco cheese sauce?

How does a cheese sauce product move from ideation to

production to implementation on an operation’s menu?

Each of our customers is unique with specific needs and

goals, but there are aspects of the product development

process that remain fairly consistent from project to

project. To demonstrate this collaborative process, we’ve

put together a hypothetical conversation between the AFP

team and a foodservice customer at the start of a project.

AFP advanced food products llc team (AFP):We’re excited to speak with you all today to discuss

our product development process and present some

potential concepts based on our initial exploration as a

starting point.

Representatives from foodservice customer’s marketing and procurement departments (Customer):That’s great! As we’ve discussed, we’re looking to create

a LTO that will be promoted next year that capitalizes on

current cheese sauce trends and has a 50% or higher

profit margin.

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AFP advanced food products llc PRODUCT DEVELOPMENT PROCESS

INITIAL PRODUCT IDEATION

RESEARCH & DEVELOPMENT (R&D) CAPABILITIES REVIEW AND ANALYSIS

FINANCIAL REVIEW & ANALYSIS BASED ON R&D FEEDBACK

TIMELINE REVIEW & ANALYSIS BASED ON R&D FEEDBACK

APPROVAL BY THE CUSTOMER

BENCHTOP PROCESS

INDUSTRIAL TRIALS

PURCHASE ORDER RECEIVED, AND PRODUCT SHIPPED TO CUSTOMER

1

2345

6

7

8

Involves understanding the goal(s) of the project:

• Brainstorming for new or innovative products/flavors

• Cost reduction

• Product match

• Occurs after customer reviews estimated prices and any potential roadblocks

or challenges

• Initial benchtops sent to customer; feedback reviewed and product tweaked

• Continue back & forth until customer approval is received

• First industrial trial is sent to customer for approval and is used for accelerated

shelf life studies

• Second industrial trial run

AFP advanced food products llc partners with some of the largest foodservice

distributors, national chain restaurants, food manufacturers/marketers and retail

outlets. We strive to deliver on our commitment to:

• Proactive innovative leadership

• Delivering market driven solutions

• Adding value through dedication to our customers’ success

Interested in learning more about how our cheese sauces

or other products could be the right fit for you?

Reach out to our experts by visiting

afpllc.com.

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cheese sauce category insights · team and a foodservice customer at the start of a project. afp...

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