The future of eat-in dining is pessimistic as consumer drive for efficiency encourages optimisation through digital services. This trend and the resultant expansion of third-party delivery pose a risk to operator margins. Success was already a razor-thin prospect with rising ingredient and labour costs. The need to incentivise visits to brick-and-mortar outlets is essential to survival. While menus providing flavour and novelty are critical, physical experience is an enduring differentiator.
Delivery
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Key Findings
The pandemic’s impact on foodservice fulfilment is systemic
Six years after COVID disrupted global lives and routines, the lion’s share of channel shift and behavioural normalisation has shown what was temporary and what could be permanent. Like the proliferation of e-commerce within retail, online delivery’s embedding in everyday life is here to stay.
It will take more than menus to drive eat-in traffic
Product innovation, flavour and novelty are all still critical to capturing and retaining consumers, but stiff competition from retailers and packaged food and beverage players is unlikely to ebb. Emphasising what is inimitable underscores the premium nature of in-person experiences.
Complex demands require a sea change in outlet strategy
A fundamental shift in consumer behaviour is disrupting product design for fast-moving consumer good manufacturers. “Need states”, a symbiosis of immediate wants and more long-term outcomes, are characterised as a more holistic target in the search for brand resonance. There is a rising opportunity to extend this framework to the consumer foodservice industry through hospitality strategy, outlet design and event planning.
Enchantment provides comfort and security in chaotic world
Both new and old rituals can be engaging and even magical for bringing customers into a space. Hospitality strategies to tap into this need not be expansive to become viral. Meeting experiential need states can be a simple undertaking and not bombast and maximalism.
Opportunity lies in slowing down when expediency is everywhere
While efficient convenience is critical for an overwhelmingly time-strapped consumer, making the case for staying a while can be just as compelling for repeat business.
Why read this report?
Key findings
Even with an optimistic forecast, caution necessary as consumers seek more for less
Away-from-home dining still finding its post-pandemic footing
Younger generations control the fates of dine out and delivery
The K-shaped recovery is playing out in consumer foodservice
The other trade down: Retail's threat to stand-alone limited-service
The other trade down: Limited-service cannot compete on affordability alone
Working for the weekend: Consolidating occasions for greater impact
Key pillars of foodservice’s value proposition are vulnerable
CPG brands are targeting “need states” to capture premium audiences
Ingredient-aligned need states have been the dominant approach
Separating the consumable from the experiential is the next phase
Experiential case studies for need states
Building new rituals is more atomic than heroic
Dinner and a show: Activity as a differentiator
Dinner and a show: Build programming-focused service and highlight in marketing
Keep the glass: Driving traffic and loyalty through memorabilia
Keep the glass: Make merchandising your full-time brand advocate
Removing ambiguity fosters relaxation and focus
Seamless hospitality: Subtlety can speak volumes
Seamless hospitality: Be intentional with touchpoints in customer journey
Disrupting drudgery: Can a coffee shop sell “flow state”?
Disrupting drudgery: Effect comfort through layout and non-edible amenities
Recommendations/opportunities for growth
Key theme examples by outlet type
Evolution of third spaces
Questions we are asking
Consumer Foodservice
Consumer foodservice is composed of cafés/bars, full-service restaurants, limited-service restaurants, self-service cafeterias and street stalls/kiosks.
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