Restaurant owners must keep up with new and upcoming trends to thrive and succeed. The quake that shook the restaurant industry last year was home delivery and the shockwaves continue. Now, let’s up the ante on how technology is changing how food is prepared. It’s a niche segment no more. For example, a major consumer high-tech company patented a system that uses Radio-Frequency Identification (RFID) to help track the calories in restaurant orders. For 2019, this segment is expected to reach US$863 billion in total sales. “It’s great you make people know you are there to support them, but it’s not that easy,” Lin said. In its South of Market store in San Francisco, it seels one burger starting at $6. Functional foods are now going mainstream as more restaurant menus start bearing their names. Check out these five significant industry trends to help you ready your restaurant for the future. Operators know that LTOs are risky, stressful operationally, cumbersome, and expensive. 25-34-year-olds will be the largest segment to use online ordering (32%) with 34-44-year-olds in second (24%). Leading the upcoming segment of food-delivery drones are Uber Eats and Dialexa. As chef and owner of COPA, the nation’s first farm-to-table living wage-certified Cuban restaurant, Roberto Copa Matos knows the importance of cultivating quality in all areas of business. to the future, we expect tech companies to have more of an impact on the industry, challenging norms. Here’s another hot automation tech trend for restaurants: self-ordering kiosks[22]. What is immersive dining, where are the best places to go and how much does it cost? The global kiosk market is predicted to reach $30.8 billion by 2024[24]. With today’s generation of food delivery firms, late deliveries can virtually be a thing of the past. Welcome AI-powered machines that can really cook any cuisine, better. In 2020, businesses around the world confronted the COVID-19 pandemic, forcing them to adjust to a new business environment and adhere to social distancing guidelines. Next came the exit of styrofoam and plastic containers. The strategy of sustainable agriculture that the former biochemist practices at the full-service Durham, North Carolina, restaurant he owns with his wife, Elizabeth Turnbull, trickles down to the way the couple manages all aspects of the restaurant from staff to menu to technology: Reduce waste of both product and time, and provide guests with the highest quality experience possible. “We had worked with a couple different options at our previous location, but we knew that this concept was bigger, it was more complicated, we had more moving parts, and we needed something that could really address each of those needs,” Turnbull says. 77% of the United States population active on social media. This latest Restaurant Technology Ecosystem[1] captures how restaurants and technology collaborate continuously. As 2020 gets going, the start of a brand new decade, we wanted set out to discover what the next five years of food would look like—because it’s fun to know stuff before anyone else. In 2020 we’ll see the cloud kitchen rise as a global trend, fuelled by the convergence of the tech and food industries. They also predict: Revenue in the online food delivery segment will reach $26.5 billion by the end of 2020. These businesses adopted innovative new products and business practices, resulting in a new wave of restaurant trends, many of which figure to shape the future of the foodservice industry. When she's not writing, Stephanie is most likely traveling, cooking, or trying new restaurants. To learn more and to register, visit rcshow.com. “As chefs, as leaders, as employers, we are going to have to address this in a serious way.”, The official Bureau of Labor Statistics turnover rate for the restaurant sector was 81.9% for the 2015–2017 period, but industry estimates are over 150%, and as most restaurant owners know, the problem had only been getting worse, even pre-COVID-19. document.getElementById("comment").setAttribute( "id", "aaad0d6febdcc27e824873bf8245a98a" );document.getElementById("g870abf955").setAttribute( "id", "comment" ); FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. Restaurant owners and their hungry diners are constantly sharing their experiences from all over the world, giving you access to millions of emerging experiences and food and beverage trends. The popular ones are cold-pressed juice and kombucha[28], which some consider as the new orange juice. This collaboration seeks to make foodservice better, faster, and safer for everybody. By 2020, the National Restaurant Association predicts that 70% of customers will be ordering food outside the restaurant premises[12]. The market’s largest segment is Restaurant-to-Consumer Delivery with a projected market volume of $15.6 billion in 2020. Let’s now take a look at restaurant industry trends that gives the most delectable offerings to today’s meticulous diners. This indicates a significant shift. On average, the industry’s yearly turnover rates range from 100% to 130%[20]. Consumers now think more about the impact of what they purchased. People of the future will most likely see fewer humans and more computers operating their favorite restaurants, according to Jeremy Julian and … In a single hour, it can assemble up to 4,000 burgers. From high profile restaurant empires to small town dining establishments, tolerance has decreased and expectations are higher than ever for workplace culture in restaurants. In 2018, fermented foods[27], which is good for a healthy gut, saw a 149% increase in restaurant menus. Nestor Gilbert is a senior B2B and SaaS analyst and a core contributor at FinancesOnline for over 5 years. This innovative touch-screen technology aims to hasten the ordering process. expects will have customers demanding full transparency on: Pricing, revealing true net costs and unbundled costs as well as corporate performance, Emphasizing fair trade, diversity, living wages, and executive compensation, Publicizing their real environmental impact, conservation initiatives, and progressive stance on animal welfare, Eco-friendly restaurant industry trends like zero waste kitchens and plant-based menu items will attract conscious consumers that are willing to spend their hard-earned cash in like-minded establishments. We made a list of some of our favorite restaurant management blogs that give us the insights we need when we’re exploring the latest trends in the restaurant industry. To keep up with new demands, upgrading their restaurant management platform was a top priority. As restaurants strive to provide a frictionless experience for consumers, restaurant technology companies are aiming to do the same for restaurant operators. Source: Upserve's 2018 State of the Restaurant Industry Report. This makes restaurant trends important to everyone. More people are searching for unique dining experiences nowadays. In 2020, the word transparency holds a different meaning than it has in recent years. Worldwide demand is increasing. One recent study revealed that 75% of people say that they’ll likely spend more for unique dining experiences[36]. The group focuses on hiring from within, but co-founder and CEO Ellin Lin told. It’s the best way to offer regulars exceptional dining experience and entice potential customers searching for a new dining adventure. Consumers love fermented flavors like kimchi, organic meat, and handcrafted beers. This significant trend makes employee recruitment and retention as major challenges that restaurateurs must address. , a raw cold-pressed juice and kombucha company based in Providence, Rhode Island. Consumers always welcome something new and unconventional that can surprise them. 45% of younger adults–those between 18 to 24–are more determined to healthy food consumption. This multi-faceted approach will start with manufacturers and operators, which. Current restaurant food trends indicate that the fast-casual chains will expand more. It’s the collision of experience and a new standard for technology and convenience. Ordering food will also be different in the restaurant of the future: restaurants are already letting customers pre-order food for collection or delivery through apps, cutting back on employee costs. It even cleans the kitchen after preparing the food. Although social media gives you access to people from all over the world, sometimes the best knowledge is available right around the corner. Or simply, proof the “restaurant of the future” is ahead of schedule. Although social media gives you access to people from all over the world, sometimes the best knowledge is available right around the corner. It forms the bedrock of family, religion, and relationships everywhere. Talk to other restaurant owners, managers, and chefs in your community. Micro chains will be flavor trendsetters. Platform-to-customers firms are fast catching up. According to Restaurant Business, subscription models that eliminate per-delivery fees in favor of a flat-rate subscription will emerge to present a clearer value proposition for consumers. “As chefs, as leaders, as employers, we are going to have to address this in a serious way.”. Fast-casual restaurants are booming today. They’re succeeding in enhancing the ordering experience and offering innovative delivery modes. Restaurant owners and their hungry diners are constantly sharing their experiences from all over the world, giving you access to millions of emerging experiences and food and beverage trends. As the #MeToo movement hit the industry in 2018, there’s no more “that’s just how it is” in response to harassment and lack of benefits for workers. The extended economic growth had caused a tight labor market for businesses a whole. The most crucial initial step is finding a great LTO concept. Three trends shaping the restaurant of the future Customers already wanted convenience and digital connections with their dining experience—either on- or off-premises. Drone delivery offers its biggest advantages over other options—speed and cost. Market players must improve this to allow continuous growth. In recent years, food delivery service—mainly from third-party providers—is on an upsurge. All-in-one restaurant management platforms. Today, zero waste kitchens are becoming the “it” trend for conscientious establishments. that they provide aid for new recruits who are entering the industry for the first time. To keep up with new demands, upgrading their restaurant management platform was a top priority. It’s similar to other automation technologies, just like when using marketing automation solutions. After McDonald’s launched its $2.4 billion “Experience of the Future” designs in 2018, others had followed suit. More and more people are opting for healthier eating options when they dine outside. They’re among the leaders in technology use in the food-service industry. They also predict: While direct delivery from restaurants still reigns supreme, the crowded third-party app space is getting creative with their approach to attract new diners to their platforms. In five years, the gap between these two segments is likely to decrease. People now want complete details about pricing[4], corporate performance, and how food products affect them. More customers increasingly prefer to have their food delivered versus eat in restaurants. These AI-powered robots offer a host of advantages that make them practical for commercial deployment. Download our State of the Restaurant Industry Report for 2020 menu, sales, and holiday trends, plus stories from restaurant owners who managed to grow sales despite the pandemic. With the changing business and labor market landscapes, no position is turnover-proof anymore. That’s not the case for restaurants and other hospitality industry players. More consumers turn to healthy foods for daily sustenance and protection against diseases. This multi-faceted approach will start with manufacturers and operators, which Restaurant Business expects will have customers demanding full transparency on: While functional foods have been all the rage in the wellness industry, they have recently become a mainstream trend in the restaurant industry. People are busy – they have less time to cook yet still want the ability to eat meals … Restaurants use limited menu items more frequently today. Integrating a top-notch POS system with your delivery operations will be key to success in this environment. In the U.S., pizza, led by Domino’s, accounts for some 60% of the American food delivery market[11]. Third-party online food delivery services will continue to increase. They should start offering competitive compensation and benefits packages, a stable environment, and opportunities for growth. Before his passing in 2018, Anthony Bourdain bestowed some wisdom onto a group of Culinary Institute of America students in a December 2017 commencement speech. With this breakthrough, anything that can be cooked, Moley can prepare in virtually every kitchen in the world. Speed, quality, and convenience matter as evidenced by the fast rise of fast-casuals and food delivery. Many consumers prefer to have their food delivered versus eating outside. They serve better-tasting food versus fast foods. Many Consumers Say Yes, More people than ever are using food as medicine, NPD says, Convenience is Key for US Diners, According to Acosta and Technomic’s The Why? They can cook with high accuracy, taste quality, and cleanliness. More and more people dine outside their homes. Restaurateurs should stop using quick, band-aid solutions and start initiating HR best practices to directly reduce staff turnover. They offer great convenience and better value. 2020 Restaurant Industry Trends: Shaping the Future of Food. Fermented foods and CBD-infused food and drinks top today’s functional food and beverage choices. The group focuses on hiring from within, but co-founder and CEO Ellin Lin told Skift Table that they provide aid for new recruits who are entering the industry for the first time. Be nice. For 2019, 25% of American adults are actively trying to manage their health[6] by being very meticulous with what they eat or drink. By keeping up with new and emerging restaurant trends, restaurateurs have the opportunity to offer their regulars a new experience and attract new diners looking for adventure. Fast-casual restaurants are booming today. It seems like pop-up restaurants and food trucks trade-off as a significant trend … Sophisticated robots perform automated cooking. There’s really no proven recipe for a successful LTO. Diners today are increasingly becoming more sophisticated and harder to please each passing day. 2020 Restaurant Industry Trends 1. 18-35 year olds spend on average 5 days per year looking a photos of food on Instagram, and 30% of them would avoid a restaurant of its Instagram presence was weak! The strategy of sustainable agriculture that the former biochemist practices at the full-service Durham, North Carolina, restaurant he owns with his wife, Elizabeth Turnbull, trickles down to the way the couple manages all aspects of the restaurant from staff to menu to technology: Reduce waste of both product and time, and provide guests with the highest quality experience possible. The platform-to-consumer delivery segment–only at 19%–is catching up. Through his work, he aims to help companies develop a more tech-forward approach to their operations and overcome their SaaS-related challenges. As the #MeToo movement hit the industry in 2018, there’s no more “that’s just how it is” in response to harassment and lack of benefits for workers. Though analysts forecast flat growth for the restaurant space in 2019 — … These robochefs can cook with high accuracy, taste quality, and cleanliness. As Upserve's Content Marketing Coordinator she creates materials that help restaurateurs, managers, and service professionals succeed. Copyright © 2021 FinancesOnline. Since 2014, sales of sustainable food products had increased by 20%![3]. LTOs and immersive dining experience are booming. There’s no need to wait to order your favorite desserts, apps or drinks. These massive revenues will come from various sources, including food pick-up, restaurant delivery, and third-party delivery firm. Just compare March 6 to March 12. Many yearn for the social experience of dining. From this, an extensive combination of diverse activities follow. It’s also good to integrate analytics in your HR operations as this offers efficiency in planning and managing manpower requirements. People value transparency and health more, The fast-casual restaurant market will boom more, Limited-time-offers becoming more frequent, integrate analytics in your HR operations, Restaurant Sales on Pace for $863 Billion in 2019, FRESH TRENDS: TRACKING THE FOUR TRENDS DRIVING GROWTH ACROSS THE FRESH SECTION. Which is why restaurants will always have that critical, timeless role in society. Changing consumer expectations and behaviors will drive restaurants to meet shifting needs with re-imagined styles of service, menu offerings, pricing and targeted messaging. The third-party delivery’s low user penetration is a promising sign for growth potential. Aside from these advantages, cost savings can allow the restaurant to bring down its price. Transparency has become one of the biggest forces impacting consumer purchase behavior[3] nowadays. , three in five U.S. consumers order delivery or takeout at least once a week. have become more than just a restaurant industry trend, but are now considered an essential valuable tool for restaurant owners and managers to integrate point-of-sale, analytics, online ordering, inventory management, and more, allowing them more time to pay attention to their guests and watch for emerging trends that could make their business the next big thing. Our restaurant trends data indicate that consumers are demanding total transparency, not simply about sourcing information. Online Ordering. 4. Key to this trend is the changing retail market landscape. Even though the trajectory of restaurant trends can be hard to predict, some have been gaining serious momentum in the past few years and are expected to continue. With the global pandemic that is currently hitting small businesses hardest, and restaurants and bars in particular, it’s more important than ever to keep up with the restaurant industry trends customers are looking for. We asked 10 chefs and restaurateurs participating to share the most promising dining trends of 2020. An increasing number of restaurants will be offering unconventional immersive dining. (6) The number of product launches has grown at a CAGR of 16% since 2014. Many restaurants conduct LTO-related market studies to explore ways to roll out more limited menu items. New technologies–like self-service kiosks and robochefs–prove to be effective among restaurant habitués. In addition to healthcare, job listings for restaurants in the group tout “an open environment where mutual respect to all members is essential.” More benefits that are often unheard of in the industry are also offered to workers: 401(k), transportation, and a women’s roundtable to help support careers of all staff—men included. “We started selling cold-pressed juices in 2013. It offers customers a novel way to order food as well. According to. The relatively high delivery fees and commission rates will be crucial to their growth[35]. The problem remains especially acute in U.S., where $899 billion in sales projected by the National Restaurant Industry for 2020 are a distant memory. graphic photography that makes the item appealing, unique ingredients or typical recipe used differently. There are numerous healthy juices in the market today. Top restaurant brands must formulate innovative production and marketing that elicit positive outcomes. Lately, many LTOs are successful among today’s consumers. How to Keep up with Restaurant Industry Trends, There are hundreds—possibly thousands—of restaurant industry blogs that are eagerly waiting to be read by restaurateurs like you. Value-priced menus have always drawn a certain type of consumer, but more than a third (37%) of consumers are seeking deals more than two years ago, according to Technomic’s 2017 Value & Pricingreport. Since 1999, fast-casuals like Panera Bread and Chipotle Mexican Grill had grown by 550%[8] until today. How to Write the Best Restaurant Business Plan, How to Effectively Use Social Media to Attract Potential Employees, A Comprehensive List of Michelin Star Restaurants in the United States. Fast-casual restaurants will continue to grow bigger. The state of the restaurant industry is ever-evolving, but nothing could have prepared restaurant owners and operators for 2020. It involves a novel, intricate human activity–cooking. These touch-screen machines speed up lines and provide a host of benefits mostly for QSRs, fast-casuals. 1. to small town dining establishments, tolerance has decreased and expectations are higher than ever for workplace culture in restaurants. This is why convenient meal services across foodservice segments and consumer groups had grown immensely. In 2018, Moley elevated cooking into new heights by introducing a fully-automated robot chef. Apps now offer food-logging and personalized recommendations to wearable devices. Actually, robochefs—like Moley[15], Cooki[16], and Chef Cui[17]—are already making delicious meals since the early 2010s. Many people consider eating outside to connect with others and make it a social experience. Most positions are usually easy to fill. The California-based Creator[18] made a robot that can easily cook thousands of burgers, consistent in taste and appearance. Now, a new focus on safety has amplified these demands. Industry experts suggest these[31]: It also helps to have a reliable restaurant management software to more efficiently roll out your LTOs. The only issue is sustaining due to stiff competition. Being historically central to human civilization, restaurants remain at the forefront of technological advancements. From the type of food they eat to how to market to them, these 10 millennial dining trends … Turnover costs, according to experts, are more than $2,000 per staff[21]. For 2019, overall restaurant and foodservice employment is expected to reach 15 million[19]. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. For this year, expect more restaurants will continue to gravitate to offering out-of-the-box experiences for their guests. Keep it clean. Source: Technomic's Top 500 Chain Restaurant Report 2018. COVID’s crater into the restaurant space shoved brands into unknown territory within days. Others are looking for rare items in the menu that will help them undergo the emerging immersive dining experience[38]. On average, cars need 10 to 30 minutes to deliver food. 74% of this customer age group express their preference for food delivery service. In the U.S., the National Restaurant Association says that for every 5 consumers, 3 order delivery or takeout once a week[32]. High Street Hospitality offers tools for career growth for all levels at its restaurants, Fork Restaurant, A.Kitchen, and High Street, including mentoring, training, and formal coaching programs. Get your restaurant set up for success with Upserve! Staying informed on foodservice industry trends is essential for identifying the wants and needs of your customers, as well as shifting dynamics in the foodservice industry. Only creativity and imagination limit them. Digital and delivery penetration was already gaining momentum before the pandemic. From sci-fi-like robot chefs to cutting-edge self-service kiosks, we’ve compiled a dozen savory trends that experts think will impact the restaurant industry in 2019. Using mature technologies like some of today’s best restaurant management software will also be critical. Niche leaders like Uber Eats and Grubhub plan to continue the aggressive expansions of their delivery coverage. The same goes for CBD-infused food and drinks[27] experienced a 99% rise among dining establishments. From the simplest dinners to the grandest of weddings, people hold celebrations in these festive venues. No aspect of the industry is left untouched, save for the basic principles of hospitality. Trends always emerge on the horizon. These include new food delivery providers, mobile apps, and online ordering systems. LTOs are proving to be effective in driving high customer traffic. (7) Consumer trends of tomorrow Restaurants had been using this turnover-proof jobs[20] HR model for decades. In fact, 6 out of 10 American consumers say that they only buy or eat food that used sustainable production[5]. that give us the insights we need when we’re exploring the latest trends in the restaurant industry. Instead of simply sharing the local farm where you buy your beef and chicken, your guests are interested in a transparency message that goes beyond sourcing details. The trend-driven nature of restaurants means that restaurateurs are often forced to look up from their long to-do lists and keep a pulse on what’s happening in the industry. We made a list of some of. Despite these, more LTOs are being issued more regularly[30] and at a faster pace. , a cloud-based restaurant management platform that boasts point-of-sale, inventory, online ordering, loyalty programs, a mobile app, and payment processing. Welcome to the hottest trend in the dining universe: dining as an experience[36]. When a lot of markets started carrying kombucha in 2016, we knew it was a good time to start,” he says. The world continues to become more urbanized and digitized. For the restaurant industry, millennials have their own distinct dining preferences. Drones will likely charge lower rates. They serve better-tasting food in a limited-service style. Experts anticipate further growth in overall sales for 2018[2], to reach US$863 billion. For 2019, this segment is expected to reach US$863 billion in total sales[2]. They chose Upserve, a cloud-based restaurant management platform that boasts point-of-sale, inventory, online ordering, loyalty programs, a mobile app, and payment processing. Stay connected with the members of your community—both in and out of the restaurant industry—to stay inspired all year long. For the restaurant industry, predicting the trends of tomorrow involves having the vision to foretell how technology that may already exist can be further leveraged … The first to exit restaurants are plastic straws. The next emerging fast casual concept is going to emerge … Experts expect the segment to continue growing. McDonalds and Panera say that they will never replace their people with kiosks[25]. The restaurant industry icon acknowledged the abusive systems that are present in many restaurant kitchens where hazing is commonplace.