The future of Foodservice [REPORT]

With rising costs and a tricky economic climate ahead, what will the impact be on Foodservice going forward? This is our forecast:

Keeping it simple: how food habits are changing: OOH food consumption meals are taking priority over snacks, OOH is used as weekend food, and consumers are downtrading to QSRs.

Meal replacement as a trend: With a concerning economic climate, some consumers are having to cut back entirely; they aren’t downtrading their occasion, their channel or even their menu, but substituting a full meal to a single snack to manage such steep price increases.

Ecommerce loses ground as shoppers head back to physical stores: The pandemic caused more consumers to explore meal delivery as more of a standard evening meal option – and a stand-in for cooking. With fast delivery and ‘everyday’ style menus (rather than a focus on ‘treat’ food) Foodservice can capitalise on consumers appetite for convenience.

Competition is hotter than ever in Quick Service Restaurants

If we look at two major QSR chains across the British, Spanish, and French markets, loyalty is harder and harder to garner. Across the three markets, the number of buyers choosing to visit both chains is growing.

For QSR, understanding consumer behaviour will be key to keep loyalty figures high and to build strategies for enticing new shoppers. Penetration drives value growth – so that is where brands should focus their efforts.

A tough future for independents?

Inflation is a global problem, and the price increase will inevitably force up prices. At the same time, there is a pressure to increase salaries or face losing employees – both of which are tricky in a landscape where gaining shoppers is harder than ever before.

These pressures will be felt most by independent bars and restaurants, who face these same challenges, while battling the growth of chains.

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