Posted in Technology on April 2, 2019
Foodservice is on a hot streak, with global spending in the coming years projected to grow 13% and produce $359 billion in incremental revenue, according to a report by the market research firm Euromonitor International.1
Driven in part by digital innovation, which has expanded the range of options, made on-demand meals easily accessible and rendered ordering seamless, foodservice operations have been able to accommodate consumer demand for speed, convenience and customization. In-app and in-store experiences are increasingly tailored to consumer preferences, interests and values, with a focus on engagement.
Sustainability, customization, engagement and convenience loom large as factors in the ongoing growth in the foodservice industry. Euromonitor’s research reveals that restaurant concepts aligned with the following foodservice trends are most likely to thrive within the shifting landscape of consumer expectations.
Clean and Green Living: With an estimated minimum of one-third of global food production goring to waste and 10% of worldwide greenhouse emissions attributed to uneaten food, sustainability is a hot button issue.2 Ethically aligned restaurants are addressing the issue and ensuring the freshness of their food through localization—the shortening of the distance between the site of their location and the source of the ingredients. “Some restaurants take this even further by ‘hyper-localising’ the supply chain with urban farming,” writes Stephen Dutton, senior analyst, consumer foodservice for Euromonitor.2 Hyper-localism enables the food supply to be consumed as close as possible to where it is grown.
Concept Example: The Barn, a premium burger fast food restaurant in the Netherlands, uses all organic ingredients, touts the local sourcing of its beef and fully compostable packaging.
Individualized Eating Experiences: To accommodate the gamut of consumer profiles, including the health-conscious eater and solo diner, foodservice operations are becoming more flexible. With single-portion meals increasingly in demand in metropolitan cities and more consumers eating out with greater frequency,3 portion sizes that limit waste and maximize value become more important than ever. Savvy operators and third-party vendors are turning to app technology to help them tailor dining experiences to the full range of consumer needs, from calorie counts to dietary restrictions.
Concept Example: Developed in Italy, third-party delivery app My Open Menu enables users to filter restaurant searches and order food based on their culinary tastes and dietary needs.
Increasing Engagement through Gamification: The rise of mobile devices has given restaurants unprecedented opportunities to engage the consumer, heighten brand awareness and build loyalty. Gamification integrates games that often reward consumers with prizes ad special offers for playing. The dining experience is extended through gamification, which can involve interactions at the point of purchase and on the app. Tapping into the feeding frenzy over mobile game apps helps foodservice operations increase their market penetration and stay top of mind.
Concept Example: At the high-tech full-service restaurant Mini Chef Lego in Denmark, customers build their order with Lego blocks, scan it with an iPad and retrieve their meal at a station where digital Lego characters entertain them.
Connecting with the Busy Consumer: The hectic pace of today’s lifestyles is driving demand for quick access to high-quality meal solutions to the next level. As a result, foodservice is expanding beyond the conventional brick-and-mortar restaurant and elevating on the go to new heights. From virtual restaurants to co-working concepts that combine dining with other functions to ready-to-eat vending, technology is redefining eating occasions and making it possible to streamline foodservice and make it more seamless.
Concept Example: Work Café Santander in Chile is co-working concept that combines a coffee shop and bank, complete with professional financial services, meeting rooms, office supplies and an area for lounging and enjoying coffee.
CB Insights also underscores the changing competitive landscape of the restaurant business and its growing reliance on tech innovation. “Market share is simply shifting away from big chains that haven’t successfully innovated, flowing instead to new models for creating and selling food to customers,” the market intelligence platform provider explains.4 Millennial demand drives the development of these new models as purchasing power shifts to consumers between the ages of 22 and 36, who now compose the majority of the workforce.4
From vegan and holistic fast casuals to futuristic burger joints to a kombucha taproom, CB Insights finds a feast of restaurant concepts rising to the challenge across America.4 As demand for menu innovation spreads along with tech innovation, it migrates from major metropolitan hubs of culinary creativity to smaller cities.
At Mondelēz International, we leverage our legacy of innovation and quality to help foodservice operations develop concepts for long-term growth. Contact us here or leave us a note below to learn how we can help ensure your business thrives in 2019 and for years to come.
