Get a little creative with incremental profit centers,and back it up with technology.
There’s only so much an operator can do with existing hours, x number of seats, and three meals a day. In order to keep building sales, new sources of revenue are required.
That’s where strategies like next-level food and beverage pairings, competitive grab-and-go offerings, new snacking dayparts, and convenience-oriented technology can provide incremental profits.
Pairing food with complementary beverages is one way to build sales, going the combo meal one better by making sure the beverage is part of the experience. It works well with wine pairings, but it also works thematically, such as burgers and shakes, Southern food and sweet tea, and baked goods with specialty coffee drinks.
35% of consumers would be interested in a themed food and beverage pairing, such as “holiday classics;” 20% would try a flavor pairing such as a chocolate dessert with hot cocoa.
With busy lifestyles comes interest in convenient alternatives to traditional on-premise dining, including sophisticated takeout and grab and-go options. But as these services grow in number, competitors are upping the ante. This includes more unique offerings and better-for-you options.
90% of consumers report picking up a premade meal from a supermarket or c-store at least once a month; 21% purchase grab-and-go items from a restaurant or other foodservice.
43% of consumers are motivated to have a snack because they’re hungry but it’s not time for a full meal.
Round-the-clock noshing is changing the way Americans eat—and the way foodservice operators are doing business. Beyond traditional breakfast, lunch, and dinner, snacking creates demand in off-hours like midmorning, and late afternoon. It also encompasses smaller-portion options at any time of day.
Behind all these trends lies the growing role of high-tech solutions that provide customers with more convenience and enhance their dining experiences.
Sources: IFMA/Datassential 2014/2015 Consumer Planning Program, Pairings; Datassential Grab-and-Go Snapshots, 2017; Technomic Snacking Occasion Consumer Trend Report, 2016
Cookies and cocoa, steak and red wine, coffee and donuts. Some food and beverages naturally complement each other and make for successful combinations that patrons crave. Now imagine integrating food and beverage offerings by theme or concept. This is a smart way to differentiate your operation and build sales around both. As a sales and marketing strategy, this goes way beyond the traditional definition of a combo meal (items bundled together as a meal and sold for less than their combined à la carte price).
According to Technomic, operators can offer pairing suggestions for beverages that complement or enhance flavors in dishes, which will help drive incremental sales. These suggestions may also help boost beverage orders among consumers who would otherwise order tap water. The tactic can be used across many trending food and beverage categories, including signature flavors, customized options, and hand-crafted specialties.
Roughly one-quarter of consumers order beverages at restaurants because they want something to pair with their meal.
36% of tasting menus are paired with wine.
Sources: Beverage Category Trends Across U.S. Operators, Technomic, October 2017; Datassential SNAP! Tasting Menus, September 2018
Yardbird (in Miami, Las Vegas, and L.A.) pairs fried chicken, ribs, and other Southern-style comfort foods with an extensive menu of bourbon-based craft cocktails.
Busy consumer lifestyles mean growing demand for convenient food and beverage options, from drive-thrus and online ordering to fully prepared grab-and-go solutions.
According to a recent report co-produced by IFMA and Datassential, today’s consumers are most likely to look to c stores and grocery stores for grab-and-go food and beverages (which are often purchased together), but opportunity exists in every channel, particularly for onsite operators.
Grab-and-go is on 0.4% of US menus, and has shown 10-year growth of 552%.
Select locations of super market chain Giant Eagle have DIY bakery displays where customers can decorate their own prebaked cookies and cookie cakes for grab-and-go.
When it comes to prepared items, consumers are most looking for unique choices (cited by 35% of respondents) and healthier options (33%) from their supermarket.
Sources: IFMA/Datassential 2017/2018 Consumer Planning Program, Grab-N-Go; Datassential SNAP! Grab-and-Go, September 2018; Datassential Supermarket Deli Keynote, 2016; IFMA/Datassential 2017/2018 Consumer Planning Program, Foodservice vs. Retail
Welcome to the era of anytime, anywhere eating, where three squares are no longer the order of the day. According to Technomic, snacking today is not just a between-meals activity; sometimes, snacking is the meal. For 39% of all consumers, and 57% of those between the ages of 18 and 34, even the definition of snacking has changed to include a wider variety of foods and beverages, and all available on demand 24/7.
6% of consumers consider a beverage to be a snack.
34% of consumers say they are snacking on healthier foods compared to 2016, citing health attributes such as “high in protein” and “energizing.”
Sources: Technomic 2016 Snacking Occasion Consumer Trend Report; Technomic 2017 Beverage Consumer Trend Report
Compass Group recently launched a line of protein kits and snack boxes, including Cheese & Fruit Bites and There’s Hummus Among Us, for foodservice customers to sell in retail locations.
As much as consumers still care about the “hightouch value” of service, they’re also extremely interested in high-tech solutions to enhance their dining experiences and make them more convenient. From online ordering to iPad menus, technology that meets consumer demand for convenience and entertainment is grabbing attention.
With 33% of consumers ordering takeout more often than three years ago, according to Technomic (49% among diners 18-34 years old), restaurants and other foodservice operations are offering more ways to order, pay, and customize delivery and takeout choices:
39% of consumers would order food via a mobile device.
70% of consumers order food online; of those, 65% use a mobile app, while 35% use their laptop or desktop.
In addition, technology is being used as a form of entertainment. For instance, interactive tabletops allow consumers to play games and view the back of the house via “chef cams.” And some tech-savvy companies have augmented reality-friendly iconography that interacts with their loyalty apps.
40% of consumers find the idea of interactive tabletops highly appealing.
Chipotle has partnered with DoorDash to launch direct delivery systemwide through either the chain’s website or its mobile app.
Sources: Technomic 2018 Generational Consumer Trend Report; Technomic 2016 Takeout & Off-Premise Dining Consumer Trend Report; IFMA/Datassential 2017/2018 Consumer Planning Program, Food Delivery; Technomic Omnibus Consumer Survey, October 2017
Be ready to catch them on the upswing.
From bold ethnic flavors and plant-based options to all-day snacking and on-the-go ordering, today’s trends are all about meeting customers’ expectations—and customers’ expectations are ramping up.
24% of consumers purchase ethnic food from restaurants at least once a week.
Technomic reminds us that consumers are moving targets, and that operators must:
But very few trends—especially food and beverage trends and other customer-focused developments—exist in a vacuum. They’re part of an evolution, like the growing appetite for ethnic cuisines (see sidebar).
31% of consumers are seeking an entirely new experience when trying a new restaurant.
This evolution is typical of the way trends filter into the foodservice industry, in a steady pattern of growth. Being proactive at the right stage for your segment is the best way to take advantage of the opportunities.
Sources: Technomic, The Flavor Experience—Defusing Disruptors (2018); Migration Policy Institute; Technomic, Consumer Food Trends, February 2018; IFMA/Datassential 2017/2018 Consumer Planning Program, Emerging Concepts & Disruptors; Datassential Global Flavors Keynote Report, November 2017; Datassential FoodBytes, 2018 Trends; Datassential SNAP! Korean, 2018
The growth in global food and beverages is driving deeper explorations and exciting new discoveries. In many cases the availability of global cuisines follows a particular trajectory of consumer exposure, from authentic food in ethnic population enclaves to adventurous-foodie obsession to mainstream phenomenon.
26.3% of instances of “Korean” appear on non-Korean menus.
This growth almost always works in tandem with demographic changes. For example,
the number of Korean immigrants in the United States grew rapidly after the Immigration Act of 1965 removed restrictions on Asian migration. “Koreatown” enclaves sprung up in such urban areas as Los Angeles and New York City, as places where homesick Koreans and curious food lovers could experience the culture.
Second-generation Korean-Americans like David Chang and Roy Choi were anxious to introduce their foodways to American diners in more accessible ways, with restaurants like Momofuku Noodle Bar and fusion offerings such as Korean tacos. From there, the trend may become progressively more mainstream.
Nestlé Professional is dedicated to being an inspiring growth partner that delivers creative, branded food and beverage solutions, enabling foodservice operators to delight their consumers. From Minor’s®, Stouffer’s®, Chef-mate®, and Trio® on-trend culinary items to innovative beverage systems under NESCAFÉ®, Nestlé® Vitality ®, and Coffee-mate® brands, Nestlé Professional meets the needs of foodservice operators while satisfying the tastes of the out-of-home consumer. Nestlé Professional is part of Nestlé S.A. in Vevey, Switzerland—the world’s largest food company—with sales of over $98 billion. For more foodservice product news and information, visit www.nestleprofessional.com.
The information provided is based on a general industry overview, and isnot specific to your business operation. Each operation is unique and business decisions should be made after consultation with appropriate experts.
