So, what’s in store for restaurants?
We’ve identified 10 trends that will affect foodservice in the months and years ahead
2020 was an unprecedented year for the foodservice industry. COVID restrictions forced restaurants to shut their doors. Technology and operational innovation was fast-tracked as the industry pivoted towards virtual, contactless business. Social, economic, political, and climate issues became impossible for businesses of all kinds to ignore, with restaurants being no exception.
At Relish Works, we explore the impacts of technology, evolving consumer demands, and macro trends on foodservice from farm to fork. We’ve been riding the wave of 2020 along with restaurant operators and quickly developing solutions to help support them. As we reflect on the year that was, here are the trends we think will matter in the months and years ahead.
1. Eating Between the Lines
TL;DR: Flexible business models and new offerings will set the stage for the future.
What does this mean for restaurants?
- Crowded competition: The definition of a “restaurant” will expand as outsiders like meal kit companies, grocery providers, and delivery-only concepts join the industry as new competitors.
- UX for restaurants: A renewed focus on technology will help restaurants to make online ordering quick and easy, offer seamless and contactless payment, and deliver to customers wherever and whenever they want.
2. Insta-Buy
TL;DR: Mobile commerce has become easier than ever before.
What does this mean for restaurants?
- Ephemeral eating: To meet customer expectations, online ordering will have to be increasingly quick and easy to keep up with cutting edge concepts — like virtual brands Krispy Rice and Melt’s Wing Shop — who are leveraging social media to enable seamless, in-app ordering.
- Third-party promotion: The competition in the digital commerce space is notoriously stiff, and restaurants will need to find new ways to stand out among the crowd.
3. Ethical Consumerism
TL;DR: More consumers are holding companies accountable for their business practices and treatment of employees.
What does this mean for restaurants?
- People power: Social media has made it easy for consumers and employees alike to share their experiences and unearth bad behavior in the restaurant industry, making it vital to be transparently ethical in the future.
- Lifestyle choices: Consumers will increasingly expect restaurant brands to reflect their values and beliefs. Bold action around employees (e.g. healthcare and tuition support for Starbucks employees) or food (e.g. local and organic food from Chipotle) can play a role in creating a fiercely loyal fan base.
4. Nourish the Planet
TL;DR: Sustainability solutions have hit the mainstream.
What does this mean for restaurants?
- Transparent traceability: Digitally tracking food from farm to table — with help from solutions like IBM’s blockchain-enabled Food Trust — will be key in ensuring accurate sourcing information, sustainable agricultural practices, and efficient distribution systems.
- Circular supply chains: In consumer packaged goods, food delivery, and restaurant industries, businesses will need to imagine how to eliminate waste altogether through circular supply chains.
5. Food Gets Personal
TL;DR: Accessible health data has made it possible to personalize diets to specific needs.
What does this mean for restaurants?
- Self-diagnosis: To help consumers better understand their health needs, there’s an opportunity for restaurants and other food brands to connect with existing consumer-facing health technology (like Fitbit or Peloton) to enable up-to-the-moment, personalized dietary advice.
- Big Food Pharma: As Food as Medicine gains credibility, opportunities in foodservice will emerge to design and provide clinically-approved medically tailored meals as formal nutrition and health solutions.
6. Together, Everywhere
TL;DR: In-person experiences are being reimagined for the digital realm.
What does this mean for restaurants?
- Experts at home: Platforms like Airbnb Online Experiences and Virtual Dining Chicago have been connecting culinary experts with hungry and curious patrons during COVID, and can serve as proof of concept for similar experiences in the future.
- Serving stans: Popular, celebrity-branded virtual concepts — like Tyga Bites, Mario Tortas Lopez, and Mariah’s Cookies — are proving competitive, offering a new way for fans to support their favorites.
7. The Post-COVID Question
TL;DR: The food industry is still speculating on what a return to “normal” will look like.
What does this mean for restaurants?
- Flexible future: Based on individual comfort levels, operators may need to balance options for patrons spanning the gambit, from those wanting to have an in-person, yet distanced, experience, to those who are ready to party like the roaring (20)20s.
- A more hygienic system: There’s no doubt that standards for cleanliness have changed forever, and consumers will be more aware of their surroundings than ever before. Visual evidence of safety protocols in restaurants will be essential to ease any doubts as patrons return to dine.
8. K-Shaped World
TL;DR: The unequal economic effects of the pandemic recession has placed a focus on value and accessibility to food.
What does this mean for restaurants?
- Accessible value: Value-per-dollar will continue to be high on the minds of consumers, as the economic forecast for the early part of 2021 remains gloomy.
- Community collaboration: Free meals for industry workers, access to pantry items for furloughed chefs, and employee donation pools are some of the generous ways that the staff have supported each other during the pandemic. As the industry rebuilds, it will be important for operators to find ways to continue supporting their employees.
9. Supply Change
TL;DR: Designing efficient distribution and last mile delivery systems has become more crucial than ever before.
What does this mean for restaurants?
- Robot-as-a-Service: An emerging area of technology prior to 2020, autonomous last mile delivery has become even more relevant during the pandemic as demand for direct-to-consumer, contactless delivery has spiked.
- On-demand infrastructure: The food supply chain of the future will require robust data automation and a well-distributed network of micro-fulfillment and micro-delivery vehicles, in order to deliver goods quickly, safely, and efficiently.
10. Loyal Service
TL;DR: Personalized brand experiences have brought new value to consumer loyalty.
What does this mean for restaurants?
- Data download: If the goal is to better understand customers, the first steps are to collect and make sense of customer data. Companies like Brightloom and Bikky can help restaurants compile and leverage engagement information into actionable insights, targeted marketing, and, ultimately, loyal customers.
- White glove service: In a digital world, it can be difficult for restaurants to identify and appreciate their regular guests. Whether it’s providing a way to quickly reorder a favorite dish, making note of a dietary restriction, or remembering to add their favorite sauce to the bag, restaurants should consider new ways to make their returning customers feel known and valued — no matter where they order.
