Technomic has been providing the foodservice industry with valuable insights on a global level for 50 years.
The research and consulting firm has been one of my go-to information sources for at least a decade.
A few weeks ago, I reviewed American food delivery trends from multiple sources. This week, I’m taking a look at Technomic’s foodservice predictions for the US.
Unprecedented and Unpredictable
Before we proceed, keep this in mind: predictions are best guesses. Technomic’s approach is scientific and data-driven but it’s important to approach any prediction with caution.
As the firm itself points out in their 2021 foodservice report, the global pandemic has plunged the industry deep into unprecedented territory.
It seems the only thing predictable about Covid-19 in relation to restaurants, bars and other hospitality businesses is that this industry will continue to bear the brunt of closures and restrictions.
That said, I trust Technomic to lead the industry through unprecedented and unpredictable moments in time.
7 Key Trends
Technomic has made seven predictions for foodservice in the US.
Streamlined menus. Technomic expects the trend toward reducing SKUs to continue. However, that may lead to innovative and healthy items replaced removed items. Leafy greens, environmentally-friendly, and health-conscience items such as immune boosters are expected to be menued.
Tech is the future. This prediction can be summed up quickly: If it’s a tech-based, can improve operations and help a brand differentiate itself from others, the industry is going to implement it.
Top three cuisines. Chinese, Italian and Mexican food and drink are expected by Technomic to perform the best in 2021, particularly if operators move beyond the classics and incorporate lesser-known ingredients. However, Technomic expects more interest in West African and Caribbean cuisine.
Social justice. Operators will have to be transparent about their stances on social justice issues and make meaningful statements—hashtags won’t cut it with younger consumers.
Umami will reign supreme. Technomic uses the phrase “new-mami” to describe “intense, mouthwatering fare.” Think fruit vinegars beyond apple, candy cap mushrooms, seafood meatballs, and so much more.
Communal concepts must adapt. Food halls, eatertainment concepts, and venues with communal seating will have to reimagine their spaces and how guests use them during an era characterized by social distancing, constant sanitizing, and off-premise business models. Traditional guest experiences may return but there’s no telling when that will happen.
Revenue recovery. Technomic expects the industry to start recovering in 2021. However, sales levels are unlikely to reach those of 2019.
Bring it all Together
Chasing trends can be a fool’s errand. Not every prediction made by Technomic will work for every restaurant or bar in Canada.
Just like Technomic collects and analyzes industry data, operators must review their guest, sales and operations data to make informed decisions. This is another reason it’s crucial to own the guest journey in its entirety.
Click here to view Technomic’s “2021 U.S. Trend Outlook” webinar.
Technomic has been providing the foodservice industry with valuable insights on a global level for five decades.
The research and consulting firm has been one of my go-to information sources for at least ten years.
A few weeks ago, I reviewed Canadian food delivery trends from multiple sources. This week, I’m taking a look at Technomic’s foodservice predictions for Canada.
Unprecedented and Unpredictable
First things first: predictions are best guesses. Technomic’s approach is scientific and data-driven but it’s important to approach any prediction with caution.
As the firm itself points out in their 2021 foodservice report, the global pandemic has thrown the industry into unprecedented territory.
It seems the only predictable element related to Covid-19 is that restaurants, bars and other hospitality businesses will bear the brunt of closures and restrictions.
That said, I trust Technomic to lead the industry through unpredictable, unprecedented moments in time.
5 Key Trends
Technomic has made five predictions for foodservice in Canada.
2021 will represent the start of financial recovery for foodservice. Technomic predicts moderate sales growth this year, below levels of 2019. However, limited-service restaurants are expected to perform better than their counterparts and return to 2019 revenue levels. Not surprisingly, Technomic expects full-service restaurants to be the most challenged.
Operators will make their stances on social issues known. Multiple sources say today’s consumers want transparency from the brands they support. They want to know what company’s believe about climate change, food insecurity, social inequalities, diversity and hiring practices, fair pay for employees, and other issues. Technomic expects more operators to “double down” on transparency.
On-premise operations will invest in off-premise business models. Again, multiple sources have reported that significant percentages of consumers are uncertain or uncomfortable about returning to restaurants and bars for in-person dining and drinking. Technomic expects operators to invest in smaller dining rooms so they can offer more limited-contact and contactless options to guests: walk-up ordering windows, multiple drive-thru lanes, designated curbside pickup locations, and in-store pickup and grab-and-go stations. The firm also expects more operators to embrace first-party/direct delivery, along with technologies like mobile ordering and geofencing.
Comfort, quirkiness and indulgence. Technomic expects comfort foods to continue to perform well and encourages operators to get creative—even quirky—with this category. They caution that health will still be a focus of many guests and suggest that some operators will “disguise better-for-you meals as indulgent.”
Our home and native land. Hyperlocality will play a crucial role in driving traffic given the travel restrictions imposed throughout Canada. Operators will likely forge relationships with local farms to attract local visitors to their venues. Technomic expects to see grassroots movements promoting support for small regional chains and local independent operations to gain traction.
Bring it all Together
Chasing trends can be a fool’s errand. Not every prediction made by Technomic will work for every restaurant or bar in Canada.
Just like Technomic collects and analyzes industry data, operators must review their guest, sales and operations data to make informed decisions. This is another reason it’s crucial to own the guest journey in its entirety.
Click here to view Technomic’s “2021 Canadian Trends Outlook” webinar.
The 2021 Restaurant Start-Up Cost Guide & Checklist is Here! Download Today
by David Klemt
This guide gives anyone starting a restaurant, bar, brewpub or other F&B venue the best chance for success in 2021.
Hospitality has endured a nearly endless thrashing for almost an entire year. The calendar has ticked over to 2021 but still, the pummeling doesn’t have an end date.
However, the industry has endured and continues to do so. We don’t know when Covid-19 will cease presenting a threat but we know this: there’s no end to the fight in those in the hospitality community.
Veteran and neophyte owners and operators are still going to open new venues in 2021, pandemic be damned. That fact means it’s more crucial than ever before that owners are positioned for success.
The KRG Hospitality 2021 Restaurant Start-Up Cost Guide & Checklist aims to structure the process of opening a restaurant or bar to maximize an owner’s opportunity. The guide contains 2021 start-up costs, renovation costs, scaled costs, an in-depth milestone checklist, and more that will help readers understand the process and keep them on track to go from concept to opening doors as smoothly as possible.
Click here to download the guide and start down the path of restaurant or bar success today.
Have a Slice of Nostalgia: The Return of Viennetta
by David Klemt
A British confection launched in the ’80s is headed back to the United States.
Wall’s brought what’s considered by some the first-ever branded ice cream dessert—Viennetta—to the world almost 40 years ago. The British frozen dessert and ice cream producer, owned by Unilever, launched the legendary treat in 1982.
Viennetta is said to be based on a multi-layered pastry known as mille-feuille. The original Wall’s product consists of layers of vanilla ice cream and compound chocolate that create the dessert’s signature wavy top.
While Viennetta was a product of Wall’s in Europe, it came to America under Unilever’s Breyers label. At one point in the ’90s, the product disappeared from the United States, though it maintained a presence throughout Europe, Australia, New Zealand, and elsewhere.
As an ’80s kid, I remember seeing Viennetta commercials late in the decade, or perhaps I saw them in the early ’90s. Either way, the images of what passed for elegance and sophistication back then informed me that Viennetta must be a “fancy” dessert. I mean, c’mon—it was served on a silver platter!
Alas, I never had the opportunity to taste what I could only assume back then was an opulent dessert before it was so cruelly whisked out of the country. But that will change this year.
Unilever is bringing at least the original vanilla flavor back to the States in 2021 under their Good Humor brand. Back in the ’80s, Viennetta wasn’t available solely at supermarkets—it was also sold at KFCs and Pizza Huts. I’ve found no announcements from Unilever or Good Humor that Viennetta will be available through a partnership at any restaurants this year, but it would make sense.
Can you experience nostalgia if you’ve never actually owned, enjoyed or consumed a product in the past personally? Apparently the answer is yes, because when I saw Viennetta was returning to America my first thought was, “Finally—I’ll have my chance,” followed by a flood of images from my childhood and early teen years.
Should I be ashamed? Maybe. But I’m not. And I know I’m not alone. And I know something else: Operators looking to leverage nostalgia, particularly if they’re ’80s- or ’90s-themed or feature programming around those decades, should be excited about this news.
Tomorrow marks the start of the first Dry January we’ve ever experienced under stay-at-home shutdowns and bar, restaurant and nightclub restrictions.
Like Veganuary—remember way back to yesterday when we wrote about it?—the movement as we’ve come to know can be traced back to the UK. People have chosen t abstain from alcohol in January for decades but Dry January really took off after the trademark was registered by a non-profit called Alcohol Change.
Understandably, many operators have taken issue with Dry January. Taking a hit to the bottom line for a month (or more) because of a reduction in alcohol sales isn’t an exciting proposition.
However, Dry January may be different this year. The convergence of a number of consumer behaviors driven by restricted access to restaurants and bars may present an opportunity.
Throughout most of 2020 we’ve been inundated with reports about unprecedented boosts in online alcohol sales. Premium and ultra-premium spirits grew at a faster rate than they had pre-pandemic. Operators have been forced to pivot, relying heavily on delivery, (somewhat) traditional takeout, and curbside pickup.
Put those all together but substitute premium spirits for premium alcohol-free options and there’s the potential for operators to generate revenue directly linked to zero-proof sales.
One of the keys to succeeding with zero-ABV drinks is presentation. Many alcohol-free brands are dedicated to elevating the category, meaning they can be treated the same as their low- and full-proof counterparts. Curated zero-proof drink kits that include quality modifiers, mixers, garnishes and drinkware can help generate sales. Post quick how-to videos to social media showing a member of the bar team building zero-proof cocktails to create interest.
Those are just two ideas. It shouldn’t be difficult for operators to pivot and offer alcohol-free options that are authentic to their brand and therefore resonate with their guests.
Operators that nail their Dry January menu programming lay the groundwork for succeeding with the alcohol-free category throughout the rest of the year. We finally live in an age where sober, sober-curious and intermittently abstinent consumers don’t feel uncomfortable visiting a bar. Make them feel welcome. Operators who alienate these guests will drive them straight to their competitors to ring their registers instead.
Seedlip is probably the best-known within the alcohol-free category but more premium brands are emerging. Operators should familiarize themselves with the following: Lyre’s (which crafts zero-proof spirits that taste like their traditional counterparts), Wilderton (which uses a distillation method that never introduces alcohol), and Shoki (which showcases African and Caribbean heritage and flavors). There are also brewers embracing the alcohol-free movement, such as Calgary’s Partake Brewing (which is beginning to cross into the US) and Lagunitas and their IPNA, an alcohol-free IPA.
Hotel Food & Beverage in a Post-Pandemic Landscape
By Doug Radkey – 07/22/2020
Nearly all of our favorite and most popular travel destinations around the world have been impacted by the Covid-19 pandemic, resulting in a horrendous financial loss for hotels, resorts, and the entire hospitality industry alike.
Research by the American Hotel & Lodging Institution suggests that hotel recovery to pre-COVID-19 levels could take until the year 2023—or perhaps even later with the expected ‘long-term’ loss of business travel and international leisure travellers.
Sadly, many properties have not survived and will not be opening their doors again. Some of those who rely on international travel see little benefit in resuming service while many borders remain closed. And those who are ready to reopen face a very different business environment to the one they were once accustomed to.
There are numerous strategies and alterations to consider moving forward for the operation of a hotel property post-pandemic; but one area that can help properties to regain their guests’ trust plus revenue and profits is that of the food & beverage program.
The Opportunity
For years, one could rely on a hotels restaurant and bar for a steady supply of traditional fare. Hotel food wasn’t necessarily an after-thought, but menus lacked (and in some cases continue to lack) inspiration.
However, in today’s global hotel market; both pre-covid and post-pandemic, a cities best and most innovative and creative food & beverage menu could be found in a hotels restaurant and bar.
But it is not longer just about the food. Hotels obviously have their chef(s) – but moving forward they must also consider a ‘director of mixology’ – even for smaller boutique properties.
Consider for a moment, instead of creating cocktails to match the food menu, doing it the other way around and starting with the beverages. You may be surprised by the results.
This is a secret to a successful, high-profit full-sensory on-premise (and off-premise) program.
While there is significant social and economic changes expected (post-pandemic), there will be a growing and potential multi-billion dollar opportunity for hotels to better cater to guests through their food & beverage options – if the venue can weather the current storm.
As the population regains their confidence to book a hotel stay, guests who visit for either business or leisure may be reluctant to travel to too many spots around town due an ongoing fear that it may not be 100% safe to do so.
Furthermore, many (potential) guests will find their finances dramatically affected by the economic downturn which is now inevitable throughout most of the world, and this will also lead to demand for more affordable cuisine and experiences.
Therefore, a food & beverage program with multiple revenue streams including a balance in pricing found within a trusted hotel that provides a consideration towards a full sensory experience for multiple day-parts is critically important.
Hyper-Local Programming
Hotels today must increasingly try to attract local residents partly because today’s visitors increasingly want to eat where the locals hang out and secondly – because that noted business & leisure travel is expected to be slow for the next 12-18 months.
The food & beverage programs and experiences must shape guests’ understanding of the hyper-local region by supporting local farms, vendors, & culture.
Hotels today and moving in a post-pandemic landscape must promote strong relationships & partnerships with local farmers and producers and introduce their products & flavors to guests in delicious and sometimes, surprising ways.
It is anticipated that hotel guests will expect venues to rely less on imported goods while using more locally-produced items within a 75 mile (100 km) radius due to support local initiatives, the need to embrace the local culture, current (and future) supply chain restrictions, and simply more robust, fresh flavors.
Buffet Pivots
Remember waking up at a hotel and strolling down to the lobby for the breakfast buffet? Sadly, that will be just a memory for most moving forward. It’s likely no secret that it will be a long time before buffets come back. Even with sneeze guards, hotels must (temporarily) shift to à-la-carte menus, made-to-order options, and individually packaged grab-and-go items.
The buffet concept (for breakfast and other day-parts) could also opt to switch to cafeteria-style model instead of self-serve stations (with physical distancing measures in place). Even hotel restaurants with self-serve beverage stations, breakfast bars, salad bars, and a toppings bar will likely need to eliminate these self-serve stations in order to comply with guidelines from both a government point of view and guest sentiment point of view.
These “serving stations” could be individually prepared & plated in real-time by staff from behind the counter which likely means more labor – but providing a safe experience which will win guests over – providing opportunity for further awareness, revenue & profits.
Off-Premise Revenue
Many hoteliers and hotel brands around the world have begun to shift their food & beverage operations amid the pandemic, catering to locals by launching both takeout and curbside pickup options.
With the introduction of this new revenue channel, it is anticipated that it will stick around for quite some time.
Hotel F&B programs must also offer access to more premium grab & go options and also meal-kits. Whether for a day out exploring the city (remember they may be hesitant to stop in a restaurant they don’t know), or on the way to a business meeting, hotels are uniquely positioned to meet guest needs by leveraging their full-service kitchens to supply pre-made meals, snacks, and even F&B experience kits.
Micro-Experiences
From mid-scale to luxury, some hotel brands are taking the resurgence of “at-home” dining to the next level by creating unique F&B packages for micro-groups at the hotel itself.
As an add-on at booking, guests for example can upgrade to a private dining package that includes customized tastings, cooking tutorials, wine pairings, and cocktail making – all in a private space.
For some hotel & resort properties, the often abundance of outdoor space can also provide ample opportunity for seasonal or year-round food & beverage experiences. Picture open-fire kitchens, bar pavilions, and an atmosphere complete with comfortable seating, temperature control systems, and (hopefully) impeccable views for couples, families, and small group gatherings.
Technology Stack
There are a lot of ways technology will enhance hotel operations and experiences moving forward, both in and outside the food & beverage department.
Inside the kitchen, remodels are expected to happen over the next 1-3 years to adhere to the quick-service demand, the demand for the noted new experiences, and the potential lack of qualified staff. This means more self-cooking oven stations, simplified processes, smaller footprints, and smart kitchen technology.
A high level of convenience and contactless service will also be critical on the consumer side, when it comes to on-premise (F&B) room service.
One way to ensure a frictionless experience is through the use of technology.
Approximately one in four hotel guests surveyed by the American Hotel & Lodging Institute, think it’s important for hotels to have 24-hour room service. They want the option to have incredible food and beverage, no matter the time of day.
Post-pandemic, this will still hold true but the service sequence needs to change so that it includes the use of technology and contact-less service, both in the hotel restaurant(s) and in-room. The data shows that one in five guests also want the convenience of ordering with technology – via the hotels app on their phone or even through the TV in their room.
The order can then be packaged & delivered to the outside of the room, to their table in the restaurant, or by having a technology-driven “pick-up locker” in the lobby with mobile phone use to access the food delivered via the hotels kitchen or any third-party delivery partners.
And when it comes to customizing mini bars, 14 percent of guests would choose a hotel where the mini bar is personalized to snack and drink preferences based on the historic data from previous stays or allergies. While some argue the mini-bar is done due to the pandemic – we think hotels just need to personalize it and then make it a point of sanitation between stays.
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Quick summary; hotel food & beverage programs must continuously react, adapt, and execute as consumer demand and sentiment fluctuates; both short-term and long-term while providing both unique one-of-a-kind experiences and brand activations.
