At first glance the trends that impact clubs such as recreation, luxury, technology and dining, among others, have evolved independently of each other. The rise of Topgolf does not appear to have any significant relationship to the rise of food waste programs. However, a closer examination reveals that not only are some of these trends related to each other, i.e. fitness and wearable technology, they are all connected to one another under the umbrella of a larger trend—community.
Community is at the heart of every club. It is why members join. Feelings of connectedness bring people together and have many benefits. As we look at some of the most important macro trends for 2016, we will also see why community is the common thread through them all.
Environment and Sustainability
Across the country Americans have placed a greater emphasis on their largest community—the environment. Concerns over issues like climate change and sustainability have encouraged individuals, organizations and the government to consider eco-friendly options that intend to protect current and future generations.
A recent Pew Research Center survey reveals that 66 percent of Americans say they will make “major changes” in their behaviors to reduce the effects of climate change. Although in some areas, such as transportation, Americans have stagnated or increased their carbon footprints, in other key areas Americans practice what they preach. Home heating and water usage has dropped over the last several decades. Americans also generate roughly 7 percent less waste in 2012 than in 2005, reports Pew analysis of information from the Environmental Protection Agency (EPA).
According to the latest EPA data, Americans recycle more than at any point in the last 50 years. In 2013, Americans recycled 34.3 percent of their municipal solid waste, up marginally from 34 percent in 2010, but a marked increased over 2005 (31.4%) and 2000 (28.5%).
Consumers also have a propensity to purchase environmentally friendly products. According to a 2014 worldwide Nielsen poll, items that had sustainability claims on its packaging saw sales increase by two percent annually over a two-year period. Products that promoted sustainability saw a five percent increase over the same timeframe. The poll also reported that 42 percent of Americans would pay more for sustainable goods.
Many companies, like coffee giant Starbucks, have made significant commitments to the environment. In 2013, Starbucks launched its $1 reusable cup to reduce waste. In 2008, the company made a commitment to reduce its water consumption by 25 percent by 2015. According to the company’s latest energy report from 2014, Starbucks was in striking range of that goal, hitting a 23 percent reduction in water usage that year. Coca-Cola reported that it is on track to meet its 2020 goal of a 100 percent water replenishment rate and many other organizations from firms with less than 10 people to conglomerates have risen to the challenge.
Water Conservation
Drought-stricken California is home to a large number of golf courses—many of which are among the world’s best. Impacting these courses’ futures is the Sustainable Groundwater Management Act, the state’s first bill to regulate water usage. To accommodate the new regulation, many courses have already gone to more drought tolerant turf and plants while others are looking to seek partnerships with local water agencies to avoid regulation and stay off the “grid.” California government agencies are also teaming up with courses to work on a plan that would help reduce water usage at desert courses by as much as 20 percent by year’s end.
Many California clubs see drought tolerant courses as not just a way to survive the current dry spell, but also as a new status quo for golf. “I can foresee for the next 20 years and trending forward that water will be our No. 1 issue,” says Paul Levy, general manager at Toscana Country Club and national vice president for the PGA of America in an article in The Desert Sun. Toscana’s North Course will have only 76 acres of irrigated grass compared to the 120- to 130-acre norm.
Golf courses’ water budgets have increased to $22,800 in 2015, up more than $5,000 since 2011, though this is heavily skewed by Western courses according to data from Golf Course Industry’s “State of the Industry” survey conducted in 2014.
Food Waste
The U.S. Department of Agriculture reports that U.S. food loss and waste accounts for approximately 31 percent of the country’s food supply. On average, a family of four will throw out nearly $1,500 of food each year. In response, the U.S. government has created an initiative to cut food waste by 50 percent by 2030. Though the goal may seem lofty, efforts to reduce food waste have many backers. Massachusetts, Connecticut, Vermont, Rhode Island, San Francisco, Seattle, Portland, Ore., Austin, Texas and other major jurisdictions have already made significant rules to reduce food waste.
In California, Governor Jerry Brown signed legislation in October 2014 requiring businesses to recycle their organic waste beginning April 1, 2016, as a key component of the state’s aggressive recycling and greenhouse gas emission goals. This law also requires that local jurisdictions implement an organic waste recycling program to divert organic waste generated by businesses beginning January 1, 2016. Organic waste includes food waste, green waste, landscape and pruning waste, nonhazardous wood waste, and food-soiled paper waste that is mixed in with food waste. California disposes approximately 30 million tons of waste in landfills each year, of which more than 30 percent could be used for compost or mulch.
Food Waste Trends
Andrew Shakman, CEO of Leanpath, a firm that aims to eliminate food waste, offers 10 food waste trends for 2016:
1. Rising Costs – As food prices rise, the cost of wasted food will be more expensive
2. More Data – More consumers want to know how much and what is being discarded
3. Emerging Standards – The World Resources Institute will release a global standard for measuring food waste
4. Zero Waste, Beware! – Though some organizations say they are zero waste, it is important to make sure they are actually fulfilling this claim.
5. National Waste Strategy – The U.S. government has made a goal to reduce food waste by 50 percent by 2030 by partnering with private sector and charitable organizations.
6. Greater Consumer Focus – Groups will increase their efforts to encourage consumers to reduce food waste.
7. Creation of a Food Waste Sector – Food waste prevention market is maxing out as entrepreneurs focus efforts on food recovery
8. Increased Public Sector Involvement – Cities and states will increase assistance and programming to educate
9. Food Recovery Solutions – There will be more efforts to bring excess food to those in need
10. Regulation – Several Northeastern states along with California and city governments may see their regulations not include smaller organizations
Source: National Restaurant Association
Many in the restaurant industry have responded and are taking steps to reduce waste and save energy. According to the National Restaurant Association (NRA), roughly seventy percent of restaurant operators who considered food costs a challenge in 2014 said it caused to the increase tracking of their food waste. As a result, these restaurateurs said they would use more locally sourced ingredients to keep costs down. This is not the only benefit, says Hudson Riehle, NRA’s senior vice president of research. He adds that reducing waste also increases customer loyalty among those interested in the cause.
Waste water reduction and increased energy efficiency are two chief concerns foodservice operators, reports the NRA. As a result, new kitchen equipment that uses smart technology and less energy have received recognition as part of the association’s 2015 Kitchen Innovation Awards (See “Dining Redefined” in the Fall issue of Club Trends).
According to the NRA’s “What’s Hot 2016,” list of top 20 food trends for this year, three of the top four and five of the top 10 food trends are related to protecting the environment. These trends are focused on sustainability or locally sourced food, which often travels just a few miles compared to the alternative, decreasing one’s carbon footprint. The fourth-ranked trend, hyper-local sourcing (e.g., rooftop gardens), means that food may only travel one floor before landing on a plate.
NRA’s Food & Beverage Trends
“What’s Hot in 2016”
1. Locally sourced meats and seafood
2. Chef-driven fast-casual concepts
3. Locally grown produce
4. Hyper-local sourcing
5. Natural ingredients/minimally proceed food
6. Environmental sustainability
7. Healthful kids’ meals
8. New cuts of meat
9. Sustainable seafood
10. House-made/artisan ice cream
11. Ethnic condiments/spices
12. Authentic ethnic cuisine
13. Farm/estate branded items
14. Artisan butchery
15. Ancient grains
16. Ethnic-inspired breakfast items
17. Fresh/house-made sausage
18. House-made/artisan pickles
19. Food waste reduction/management
20. Street food/food trucks
Source: National Restaurant Association
Also, consumers prefer a personal connection with their food. Today’s dining trends emphasize healthy, natural and ethnic themes. Local and handmade foods benefit as they are perceived to be authentic and natural. Ethnic cuisine allows eaters to learn and experience other cultures for themselves. Of course even large chains like Panera and Chipotle have made strong stands to provide food “-free” of pesticides, gluten, hormones and genetically modified organisms.
Recreation
Many recreational activities rely heavily on teamwork to have success and fun. But top club sports, primarily golf and tennis, have traditionally relied on individual efforts. Recent trends in both activities point to a new appreciation for social interaction, leading many in the industry make adjustments to their respective sports.
Golf
As it has been well documented, golf participation has remained at approximately 25 million players. Cost, time and the game’s difficulty are often barriers to new golfers. Perceptions of antiquated etiquette also discourage some golfers of playing, especially younger ones.
According to a National Golf Foundation (NGF) survey of core golfers, when asked what makes golf more enjoyable, the number one response was playing with the same group of friends at 50 percent. Another 50 percent said playing “ready” golf. Third highest at 42 percent was closely following the rules.
These results indicate the strong need for a social dynamic when playing the game. This need is strong among Millennials, a key target demographic for golf operators. As you will read in “Where’s Golf Headed?” on page XX, NGF data shows that Millennials create a significant portion of the golf population with 6.4 million players, but their participation rate is lower than previous generations. In the article you will also find the increased emphasis on providing clinics and lessons to new players.
NGF’s 2015 report Golf and the Millennial Generation highlights several strategies to attract golfers. The study reveals a style of golf called Golf+, which incorporates the unique, social and recreational needs that golfers between 18 and 34 demand from the game.
Topgolf, which combines a driving range with fun bar scene has exploded in popularity using the Golf+ model. Golfers of all skill levels can participate in friendly competition while enjoying tasty meals and drinks. Others in the golf industry are emulating the Topgolf culture. Mariana Butte, a course in Loveland, Co., is home to “Games on the Range,” which uses close-in targets to play games of tic-tac-toe and other fun activities while being served by wait staff. At OB Sports facilities, golfers are encouraged to go to designated areas of the course called, “selfie spots.” Players can take pictures, post them online and even win prizes.
NGF also suggests creating fun golf events. At Reunion Resort in Orlando, Fla., golfers can participate in a weekend-long tournament and activities that include longest drive, putting and closest to the pin contests, a golf clinic, free drinks and even free cigars and a dunk tank.
Though these ideas may be out of the comfort-zone of many, some established golf leaders support this level of creativity. Golf legend Greg Norman encourages openness to Millennial desires. “If they want to play in cut-off jeans and a T-shirt at a public facility, let them go,” he said to News-Press. “If they want to go on the course with a skateboard, let them go. If they want to put an iPod in their ears or play music, let them go.”
Eric Lohman, PGA general manager at Monarch Beach Golf Links, recognizes that Monarch’s most popular events for young people are those with strong social components. “We incorporate more music, food and drink, and keep the length less than four hours,” said Lohman in an interview with Meetings Today. Lohman also suggests emphasizing the fun aspects of the game more so than the scores to keep less experienced and young golfers interested.
Tennis
Tennis does not have the same set of obstacles that golf has, but it still is an individual sport with a desire for social interaction and sights set on new players. According to the Tennis Industry Association’s (TIA’s) “2015 State of the Industry Report,” 17.9 million people played the game in 2014. This number is up 1 percent from 2013, says the Physical Activity Council. The game is still growing but the number of “core” tennis players, those who play 10 or more times a year, fell by 1 percent.
Kurt Kamperman, chief executive of Community Tennis for the United States Tennis Association (USTA), explains the association’s efforts to grow youth tennis participation by using low compression and instructional balls, shorter courts and racquets, modified scoring, as well as incorporating a strong social component, is key to the future of this industry and sport.
At Crane Creek Country Club in Boise, Idaho, the tennis program has expanded its programming to better accommodate socializing. After upgrading the tennis facilities and incorporating creative activities, tennis participation grew on top of its already strong base. Ben Hay, general manager at Crane Creek, notes the importance of social bonds to get newcomers, in particular, male players. “The most common situation for someone new picking up the game is when a woman who is playing on a mixed team then invites her husband to start playing, and then he makes friends.”
The club also encourages players of all ages to have fun. Club Creek’s QuickStart Tennis program offers a fun pathway to the game, and a recent event for adults encouraged players to wear throwback outfits of yesteryear. Players wore wigs, headbands and all-white clothing to imitate their icons growing up. Though the game itself was enough to entice participants, Hay credits the event’s social aspect, “It was more about the people engaging and calling their friends than the event itself,” Hay says. “If you get the right mix of members, it’s going to be popular.”
Pickleball
Perhaps no sport highlights the recreational trend of community better than pickleball. Once on society’s fringe, the racquet sport has blossomed into a game that hosts 2.5 million players, reports the Sports & Fitness Industry Association. From 2011 to 2013, the number of players nearly tripled, says USA Today.
What makes the game so popular? For starters, the game is low-impact and allows for people of all ages, especially older players, to participate. According to Athletic Business, 70 percent of United States of America Pickleball Association (USAPA) members are more than 60 years of age.
The more important factor may be the game’s social component. Pickleball often spreads through word of mouth. Terri Graham, who is helping produce the 2016 U.S. Open Pickleball Championships, says to Tennis Industry that the game is full of players who promote the sport. Justin Maloof, executive director of the USAPA, calls these people “ambassadors.” They are enthusiastic players who host clinics and introduce prospective players to the game, he adds. Given the sport’s rapid and viral growth, the ambassador recruitment model has been effective.
Fitness and Technology
As discussed in previous issues of Club Trends, fitness trends have a significant impact on clubs. More than 52 million Americans are gym members, reports the International Health, Racquet & Sportsclub Association. Many people are drawn to fitness for its many health benefits, but also its sense of community.
Technology Builds Community
Though technology silos individuals in some respects—tethered to cell phones, tablets and other personal devices—technology has also brought the fitness community together. Social media websites and apps have linked billions of people across the world and connecting people who are into fitness. On Twitter, people use various hashtags, such as “#ToneItUp,” to share their progress and to support others who are seeking to live a healthy and active life. People share photos of their progress, workouts, meals and food purchases with this online community. The Twitter account @ToneItUp has more than 205,000 followers alone, and is just one of many online fitness communities. On the popular website reddit, more than five million people subscribe to its “fitness” forum to share tips and progress, ask questions and support one another.
Fitness apps are also growing in popularity. MyFitnessPal’s Calorie Counter has more than 10 million downloads. This app helps users track the food they eat using the app’s database of more than 5 million foods. It offers a personalized diet and tracks and recommends exercises as well. The Calorie Counter allows users to connect with friends to view their progress, motivate each other and even meet new people who have the app. It is also able to communicate with other popular fitness apps like Fitbit and MapMyRun. MapMyRun has more than 5 million downloads and allows users to post the exact route, with calories burns, miles ran and total minutes during the exercise session.
Merging fitness and technology, wearables is the top fitness trend for 2016, according to the American College of Sports Medicine (ACSM)—the top 10 list of trends can be found on page XX. Wearable technology often comes in the form of wristbands that can track anything from heart rate to sleep patterns, caloric intake, speed and some can even link with other users to engage in health competition. Mind Commerce, a digital technology research firm, predicts that wearables for sports and fitness will reach a $9.4 billion global market by 2020. The most popular of these devices, Fitbit, has sold more than 20 million units from 2012 to 2015, according to its records.
American College of Sports Medicine’s Top 10 Fitness Trends for 2016
1. Wearables: Items such as Fitbit, Apple Watch and Garmin track a range of bodily functions and have soared in popularity since being introduced just a few years ago.
2. Body weight training: Falling just one spot from 2015, this form of exercise has been repackaged to be more useful as a popular gym activity.
3. High-intensity interval training (HIIT): Down one spot from 2015, HIIT involves a quick burst of energy followed by a short rest period. One of its popularizing forces is CrossFit.
4. Strength training: Remaining at number four, this activity appeals to a both men and women of all ages.
5. Educated, certified and experienced fitness professionals: Down from three last year, this job position is growing. The U.S. Department of Labor Statistics predicts a 13 percent increase in employment for trainers from 2012 to 2022.
6. Personal training: More trainers means more time for one-on-one development. Legislation requiring certification has been introduced in parts of the country.
7. Functional Fitness: These activities focus on balance and coordination by replicating daily activities. They are often paired with older individuals.
8. Fitness programs for older adults: This market is expanding as highly active older Americans can take part in more rigorous exercise regimes.
9. Exercise and weight loss: In the top 10 for several years, this trend has been boosted by organizations that offer weigh loss programs. Today’s diets focus more on a combination of working out as well as eating healthy.
10. Yoga: Down two spots from last year, the practice is evolving and has many forms as well as instructional books and tapes.
Source: American College of Sports Medicine
High-intensity interval training (HIIT) ranks third on ACSM’s list. These workouts require quick, intense activity followed by a short period of rest. CrossFit is one of the most popular HIIT activities and has a strong focus on community. It started with a modest following, but CrossFit now has more than 11,000 gyms (known as “boxes”) around the world and generates roughly $4 billion annually, reports Forbes. Its participants are often ardent supporters of the craft. CrossFit has a strong web presence including its official YouTube channel, which has more than 750,000 thousand subscribers and views into the tens of millions. Individuals regularly post their own videos online as well. Often, its exercises are performed in groups, creating competition and camaraderie. Although critics call the sport extreme and dangerous due to a high frequency of injuries, members of the CrossFit community have rallied around each other to dispute these claims. In this area, ACSM ranks group workouts eleventh on its trends list for 2016.
Technology aside, “couples workouts” will also be popular in 2016, reports the Des Moines Register. These activities often involve biking, running and taking group classes together. Acroyoga, has taken hold in some areas. This fitness activity combines acrobatics and yoga, often requiring one partner to support the other, and advocates promote its physical and well as mental benefits. Says Tiffany Thomas, a certified Acroyoga instructor in Iowa, “It’s so wonderful for couples because it’s about trust and playfulness … but it’s also really about community.”
Looking into the future, Rasmum Ingerslev, founder of Wexer Virtual, which offers online fitness classes, believes that technology will continue to drive fitness and enhance the activity’s social appeal. Less will be dependent on the fitness center’s physical plant, services will become more flexible and customized, and exercising will be more social. Ingerslev envisions that fitness centers will offer tailored classes and activities to the consumer, including specific timeframes and even recommendations for exercise partners. Trainers may be virtual as well, which means a greater emphasis will be placed on working out at home. Altogether, fitness centers will focus less on the brick and mortar and more on how well they engage members.
Families
The family unit has changed over the decades. The “traditional” family unit—a stay-at-mom married to a working father—is no longer the norm. In 1960, that style of family occupied 50 percent of U.S. homes (perhaps lower than many would expect), reports Pew. Today that number is at 14 percent. Increased divorce rates and births out of wedlock account for some of the decrease. Also, as more mothers enter the workforce, the share of stay-at-home moms has decreased. Roles between mothers and fathers have merged over the years, but only 7 percent of fathers are stay-at-home dads.
Coupled with increased competition to get children into sports, music and highly-rated schools, the modern family is busy. But data shows that this might not mean families do not spend much time together. In fact, the opposite may be true about American families.
According to the Journal of Marriage and Family, American families spend more time together than any other family unit in the world. U.S. families spent more time with their children in 2010 than at any point since 1965 (since the data was recorded). The study also reveals that it’s very possible that the amount of hours parents spend with children is not all too meaningful.
|
Average hours parents spend with their children each week since 1965 |
|
|
|||||
|
Women: |
10.5 |
7.3 |
8.5 |
11.2 |
12 |
13.9 |
13.7 |
|
Men: |
2.6 |
2.4 |
3 |
4.5 |
6.9 |
6.4 |
7.2 |
|
|
1965 |
1975 |
1985 |
1995 |
1999 |
2004 |
2010 |
Source: Journal of Marriage and Family
Although this sounds counterintuitive, the study points out a key finding: the quality of time together is more important than the amount of time. There are also instances when parental time with children can be problematic for youths. This includes when parents, in particular mothers, are feeling stressed, guilty, sleep-deprived and anxious. It also includes when parents use the majority of their time with their children under six years of age watching television or engaging in little activity.
However, there are several instances where quantity of time together is important. Particularly doing adolescent years, time with mothers as well as family time reduces risks of delinquent behavior and engaging in risky/illegal behavior such as drugs and alcohol.
In terms of quality time, various studies show the relationship between positive parent-child activities such as reading, eating together and talking with one another, and creating a bright future for kids.
Luxury
The Great Recession has left a lingering impact on the luxury market. According to a Bain & Company report, global luxury spending has grown just 5 percent year over year to $1 trillion dollars, the market’s slowest growth in years. This slow growth is now considered the “new normal,” says the firm. And personal luxury goods such as watches, handbags and jewelry grew only 1 percent in 2015 compared to 3 percent in 2014.
The habits and values that consumers developed during the Great Recession have contributed to this “new normal,” says a 2015 Unity Marketing report. Affluent consumers still do not feel as financial secure today as they did prior to the recession. Economic uncertainties as well as the not-too-distant memory of the recession prohibit these individuals from spending lavishly on luxury.
Increased Social Consciousness
Another reason for this change in behavior reflects society at large. Political debate and increased discussion on issues such as income inequality have given the term “luxury” a negative connotation, says Pam Danziger, president of Unity Marketing. Affluent consumers have felt less comfortable displaying their wealth.
Marketers should focus on providing value to luxury consumers, says the Unity Marketing report. A glitzy brand will not appeal the same way as a product the offers good value, and function trumps ostentation. Affluent are shoppers also seeking personal connections with their purchases. One target is Etsy, a peer-to-peer commerce website that specializes in handmade, vintage and unique items. Buyers may communicate directly with sellers, forming a more personal and authentic connection. The increased emphasis on transparency from consumers will encourage luxury brands to tell stories “that reflect a responsible face of luxury focused on values and substance, rather than simple ostentation style,” says Danziger.
Shared Goods
More people are using shared goods, such as bike and car services and even living spaces. Uber, the popular personal driver service, allows users to punch in their location and have an approved Uber driver bring them to their destination. The company encourages anyone with a car and driver’s license to apply for a position. This may have seemed unusual just a few years ago—a stranger picking up someone for a ride—but it is now normal in many cities. Uber recently introduced UberPool, which matches riders with others in the area to carpool.
In other urban areas bike-sharing and car-sharing services are gaining popularity as well. Capital Bikeshare, a Washington, D.C., bike-share service allows riders with subscriptions or who pay on the spot to simply grab one of their bikes from many racks placed around the city and go. A similar concept applies to car-sharing services like Zipcar. Merely pay for a subscription, pick up a car from a designated area, drive and return it.
Airbnb is another sharing service that has gained popularity. Airbnb allows people to host guests for overnight stays—like a hotel, but generally at a lower rate. This model has proven successful, with more than one million monthly stays in 190 countries.
These services are particularly popular among Millennials who see less reason to make large and long-term investments than their older counterparts.
Outlook
Clubs have a unique set of challenges. They offer a wide range of programming to an even more diverse group of people. Although these trends vary greatly individually, together they share a common goal—community.
Club Trends Winter 2016