To navigate the exciting developments and emerging trends in the foodservice industry, we focus on the highly anticipated “2024 State of the Restaurant Industry Report” from the esteemed National Restaurant Association. This comprehensive report promises to unveil the latest insights, challenges, and innovations shaping the dynamic world of restaurants in the year ahead. Join us as we delve into the culinary world, exploring the evolving tastes, preferences, and strategies that will define the foodservice landscape in 2024.

 

Growth Will Continue

In 2024, the foodservice industry is poised for unprecedented growth, with projected sales soaring to a record-breaking $1.1 trillion, according to the National Restaurant Association (NRA). This optimistic forecast is backed by insights from the NRA’s annual “State of the Restaurant Industry” report, which draws from surveys of operators and consumers, and analyses from NRA economists. The restaurant and foodservice industry is on track for substantial growth, expected to add 200,000 jobs, reaching a total employment of 15.7 million people.

 

Operators demonstrate remarkable resilience despite rising food costs, labor expenses, and lingering pandemic-induced debts. While 45% of operators anticipate consistent sales compared to 2023 figures, 33% expect an increase. However, concerns about profitability persist, with only a quarter of operators predicting higher profits. Staffing shortages remain a significant issue, with over 40% reporting inadequate employees to meet demand, prompting a greater reliance on technology for labor solutions.

Operators increasingly turn to technology to address challenges such as labor reduction, cost-cutting, and business enhancement, integrating tech solutions across various operations. However, consumers still value human hospitality in their dining experiences despite the reliance on technology.

 

Key findings from the “2024 State of the Restaurant Industry Report” highlight the following:

 

• Intensifying competition, as noted by 45% of operators.
• Rising costs, with labor and food costs being significant concerns for operators.
• Consumer cautiousness regarding spending, with an emphasis on value propositions.
• Strong consumer affinity for restaurants, driven by the enjoyment of unique flavor experiences.
• Off-premises dining remains a crucial trend for operators, with over half of consumers, especially 67% of millennials and 63% of Gen Z, considering ordering takeout from restaurants an essential aspect of their lifestyle.

The report, compiled by the National Restaurant Association, serves as the authoritative source for industry projections and trends. It analyzes economic conditions, operational dynamics, workforce trends, and culinary preferences to provide insights into sales forecasts and market trends for the year ahead. Despite ongoing challenges, the industry remains dynamic and resilient, poised for continued innovation to meet evolving consumer demands.

 

Sources:

https://restaurant.org/research-and-media/research/research-reports/state-of-the-industry/

https://www.foodbusinessnews.net/articles/25507-restaurant-sales-forecast-to-exceed-11-trillion-in-2024

openai.com

 

Let’s begin with defining convenience. Ten years ago, a quick service lunch meant going inside a restaurant, reviewing the menu, telling a staff member what you’d like, and waiting a few minutes before getting your tray and sitting down with other lunch-goers. Today, that sort of convenience is unrecognizable. According to QSR, completing orders through apps, relaying orders to touch screen kiosks, and picking up food from drive-thrus is the way of the “time-pressed” future. Digital cafes are popping up nationwide to help fit customers’ needs quickly and efficiently.

 

Big fast food chains are jumping aboard the digital train, like McDonalds, Taco Bell, and Wingstop, says The Street. Some have beefed up their technology, like apps, drive-thrus, and rewards, and some have gone further, eliminating dining space altogether. Last year, Wingstop, a chicken chain that began in Texas, opened its first “restaurant of the future.” With no register and no front staff, their zero-cash approach operates with ordering screens. According to the article, Wingstop’s eventual goal is to transition to online and app orders exclusively.

 

Chipotle, back in 2018, opened its first drive-thru-only restaurant, Chipotlane, with tremendous success, says RIS. Their no dine-in storefront offered food exclusively through their drive-thru service. Last year, they opened what they’re calling the Chipotle Digital Kitchen, which features a drive-thru, and walk-up ordering window for convenience. The restaurant will operate through an app, online, and delivery orders (like Urban Eats), but also have a small outdoor patio area for dining.

 

Fast food giant McDonald’s is also testing the waters with digitally-operated stores. Slower to embrace the full digital experience, McDonald’s created a more customer-forward store in Fort Worth, Texas, says The Street. Half the size of its regular stores, this one has a conveyor belt for online pick-up orders, shelves for delivery services, and kiosks for customers who haven’t looked at their phones in awhile. This solo restaurant serves as a guinea pig for the company to see how successful (or not) it is for their chain.

 

In 2021, Taco Bell opened its digital-only location in New York City’s Times Square. Eliminating contact completely, customers order through kiosks and grab their food from locked cubbies, says the New York Post. A hint of human existence appears as each order is made in an open kitchen, and then placed in a heated cubby with a lamp that turns pink when ready. With the entering of a code number on a touchscreen, customers can extract the order and be on their way, says the article.

 

Lunch has become a quick, efficient, and high-tech experience thanks to these chains. There are a lot of opinions about how much human interaction is being eliminated through these technologies. But the customer has spoken; digital cafes are gaining traction. Whether you’re out to lunch on your break, picking up an order for a customer, or simply trying out something new, lunchtime has come a long way. Keep up with restaurant technological trends on the Synergy Blog.

 

Today’s non-commercial foodservice providers face more pressures than the average restaurant. So how do you stay competitive and wow your guests?

The dining public has high expectations that continue to grow. Whether it’s organic ingredients, local sourcing, fair trade certified, or cruelty-free, today’s restaurant guests expect that their standards for quality, as well as their dietary needs, are met at every meal. Restaurants with experienced back-of-house teams strive to meet these ever-changing demands while keeping food and staffing costs at bay.

Whether ordering a post-workout smoothie at their gym, buying lunch at their corporate café, or treating their family to snacks at an amusement park, foodservice customers assume that they will have their pick of high quality, better-for-you menu options no matter where they’re eating.

This long-standing trend puts additional pressure on businesses that operate dining facilities but aren’t traditional foodservice operators. Amusement parks, family entertainment centers, corporate and college cafeterias, airports, and housing communities are just a few of the entities who have been forced to upgrade their menu options and food quality to serve a demanding dining public. Rather than seeing this challenge as an inconvenience, institutions and corporations with F&B programs can develop dining strategies that create a competitive advantage.

Amusement Parks and Entertainment Centers: Bringing the Wow with Wellness

In our recent work with water parks, family entertainment centers, and amusement parks, the challenge is to balance the expectation of “fun foods” with a growing desire for healthier options. We’ve addressed these needs by raising the level of food quality in ingredient sourcing for menu items with wide appeal. For example, using a blend of chuck, brisket, and short rib for burgers and top-shelf ice cream for milkshakes greatly enhances flavor and gives the operator a greater value proposition to promote on their menus. In addition, by building these items with greater plating presence and over-the-top garnishes, guests looking for these fun foods to complement their experience are willing to pay a bit more for visual appeal.

At the same time, not every amusement park guest wants burgers and shakes. Creating healthier options that still convey a brand personality infused with fun provides an interesting culinary challenge. Items like elote corn with herb garnishes and grain bowls with interesting blends of roasted vegetables deliver color, depth of flavor, and appealing  options for vegetarian and vegan guests. Offering these better-for-you items appeals to adults who bring children to amusement parks but want a better meal for themselves. This type of menu approach satisfies a wide range of guests and, if promoted correctly, can provide a compelling point of difference for the park operator.

Colleges and Universities: Aligning with Guests Needs and Values

The drab cafeteria offerings on college campuses are largely a thing of the past, considering today’s student demands and increased competition. The typical college dining hall has been replaced with vibrant food stations and grab-and-go options to cater to a generation more inclined to snack than sit down to eat. In addition, university cafeterias no longer have a lock on the student dining population. Restaurants looking to appeal to college-age audiences build a part of their real estate strategy around securing locations near college campuses and offering promotions and delivery deals geared toward students.

So how do college dining halls compete with the marketing power and brand recognition of large restaurant chains? One strategy is to align their operations with the expectations and values of their student customers. Besides being focused on ingredient quality and sourcing, college-age customers are also concerned with sustainability, reducing food waste, and eliminating food insecurity. Along with meeting the menu variety and student health concerns, university foodservice outlets can develop programs to donate leftovers to local food banks, collect food scraps for composting, and offering specially priced meals for students on strict budgets.

Solutions for Non-commercial Foodservice Operators

Considering the pressures on noncommercial food outlets for menu innovation and operating efficiencies, how do these hospitality providers stay competitive? Partnerships offer a compelling solution for companies who would rather pay an outside operator to provide food service within the facility. For example, Sodexo is partnering with plant-based chain Veggie Grill to install outlets on select university and college campuses next year. On the upside, contract foodservice operators like HMS Host provide a turnkey solution for institutions who don’t want the pressures of being in the food service business.

For smaller operators such as residential clubhouses or country clubs with a limited customer base, using a contract operator may not be an option due to low volume. So what’s the solution? Work with an experienced food service provider or consultant to help develop a scaled foodservice solution that can be operated successfully with a lean staff and minimal overhead. For example, smaller operators can take cues from restaurants who have scaled their operations to fit the smaller footprints of food halls and food trucks but still provide innovate and vibrant menus that appeal to today’s diner with minimal space and maximum food quality.

Meeting today’s expectations for food quality, convenience, and sustainability doesn’t have to be a chore. Contact Synergy to help turn your noncommercial foodservice operation into a competitive advantage and profit center.