6 trends influencing the foodservice sector

The foodservice industry is a great place to work, but that doesn't mean it's an easy place to do business.

The conditions for success in the foodservice sector are changing, and companies have no choice but to adapt, which inevitably creates tensions and raises questions. In the wake of the pandemic, some prophets of doom have already predicted the end of sit-down restaurants. Of course, this is nonsense. People always gather around a table to eat and drink.

What will change, however, is the framework and the way customers access it.

New opportunities are emerging, while traditional working methods are losing ground. This proves once again that agility plays a crucial role in a restaurant's survival.

To prepare for the future, it's essential to assess the present. So let's take a look at six ways in which the sector is evolving.

1. Off-premises is here to stay

A few years ago, this idea would have been greeted with mild skepticism. Today, you're more likely to get a solid "clear!" in response.

Consumers no longer see a restaurant as simply a place where they can sit and dine. They perceive a restaurant as a food brand with which they can interact in many ways, across multiple touchpoints and channels.

One of these channels is off-premise, and demand is massive. If one thing is certain, it's that people want to be able to have ready-to-eat food delivered to them, wherever they are.

2. Technology is no longer a luxury

Running a restaurant has always been very difficult. The amount of cutlery required to get by is enormous, and the competition is eagerly awaiting a slowdown. Fortunately, today's technology can help restaurateurs keep track of all their cutlery.

The digitization of restaurants is still in its infancy compared to other sectors. So, until technology is fully embraced by all foodservice players, it will continue to be a key driver of progress, and a huge competitive advantage for those companies already ahead of the game.

What's remarkable is that the focus of digital transformation is broadening. In the past, digitization revolved around the point-of-sale system and related tools, whereas today, back-of-house solutions are increasingly adopted to cope with the growing complexity of production management and the rising cost of selling products.

3. Menu engineering is essential

Supply chains are fragile. As a result, for restaurants, it's not always possible to source the usual range of ingredients, and on top of that, raw material prices can rise rapidly, resulting in an equivalent reduction in margins.

This situation has put menu engineering back at the top of the agenda, and it's not about to give way. And why? Well, because all management teams want to be able to react quickly to market changes.

As for the menus themselves, they're getting smaller and smaller. Smaller menus cut costs and are easier to produce, even with minimal staff, thus increasing operational efficiency. But with fewer menu items, restaurants can't afford to make mistakes on any of them. Hence the growing importance of menu engineering.

Menu engineering is all about creating an optimal menu consisting of only the most profitable and most popular dishes.

4. The way employees work is changing

To say that the sector is experiencing a staff shortage would be an understatement.

Restaurants can't find enough staff fast enough. This means that employee training is more important than ever. Restaurants need to be able to train new employees, who may be unskilled, as quickly and efficiently as possible. And they need to do so without having to put unnecessary extra pressure on existing employees.

Fortunately, innovative digital solutions are coming to the rescue. For example, Apicbase's recipe library enables restaurants to create recipe training guides with step-by-step methodologies. This considerably speeds up training and the roll-out of menus in all establishments.

The "new reality" is that there are many new sales channels, such as kerbside sales, the Drive, cell phone ordering and so on. And the consequence of this is that many positions will become cross-functional rather than specialized.

Order kiosks become a powerful ally for employees, providing order-taking and cashiering support during busy periods. Restaurant staff can thus be allocated to production tasks in the kitchen or order preparation.

5. Franchises get a bigger slice of the pie

Over the past decade, it has become increasingly difficult for independent restaurants to stay afloat. For many, the pandemic was the final straw. On the other hand, customer demand has remained strong, which means that there is still a lot of market share to be won.

Franchise systems could well reclaim this market share. They have proved themselves capable of handling adversity far better than their independent competitors. And if franchisors were able to get through the pandemic without too much damage, they are now attracting the interest of investors. Add to this favorable real estate conditions, low interest rates and a large number of unemployed restaurateurs, and it's clear that franchise systems have a head start.

6. Real estate in the restaurant sector will decline

With the acceleration of digital ordering, restaurants will have to think twice about their real estate configuration. By adapting to the increase in off-premise sales, restaurants could come to reduce the surface area of their dining rooms and increase that of their kitchens, takeaway sales and order collection areas. In so doing, they redefine their priorities to put the customer first and maximize profits.

Final thoughts: to be successful in the future, restaurants will need to be able to adapt quickly to business conditions and constraints. They will also need to be able to streamline their operations, develop a superior menu, and train and retain their employees.

About Apicbase

Apicbase is the backbone of multi-site restaurants, Dark Kitchens and large-scale catering. The F&B management platform integrates with your POS, suppliers and accounting. This gives you full visibility of your back-of-house costs and processes such as inventory, menu development, planning and traceability, enabling you to grow more efficiently.

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