It’s here: the next generation of Brizo FoodMetrics is waiting for you. Learn more.
It’s here: the next generation of Brizo FoodMetrics is waiting for you. Learn more.
For a franchisor looking to expand its locations, a clear understanding of the food service market trends is essential. Knowing the local food trends will help to better position your brand and attract potential customers. That means having access to real-time, data-rich insights and analytics to maximize awareness of foodservice industry market trends and identify the highest potential locations.
In this article, we have rounded up the top 10 market trends that all franchisors should consider as they look to join (or grow their piece of) the food service market pie. We’ll offer some resources that detail the underlying data so franchisors can easily find and support their decisions with facts. With a data-driven approach, you can accurately gauge the size and opportunity of the food service market and make an informed decision about where (and when) to expand your business.
1. Restaurant Trends
One of the main factors that dictate profitability in the foodservice industry is restaurant trends. Specifically, understanding the types of restaurants that currently dominate the local market and what type of new culinary experiences are gaining popularity can help you decide on the right restaurant concept for success.
For instance, quick-service restaurants are becoming increasingly popular, particularly those that focus on fresh, organic ingredients. Restaurants specializing in plant-based cuisine are also seeing increased customer demand. Knowing which types of restaurants are currently on the rise in your target area can help you ensure you choose a business model that’s well-placed to cater to customer needs.
2. Increased Competition
Competition is always a major factor in the foodservice industry. As trends evolve, franchisors have to be prepared to face increased competition from other brands offering the same menu items or services. One notable trend increasing competition is the rise in delivery services such as DoorDash, Postmates, and UberEats.
These digital services have completely revolutionized the delivery market. The convenience and speed of digital delivery are motivating customers to increasingly forego traditional restaurants for digital-based options. To stay competitive, it’s essential that franchisors—even those specializing in dine-in experiences—consider offering a delivery option as well.
3. Delivery & The Digitalization Of Food Service
delivery services have completely revolutionized the delivery market. The convenience and speed of digital delivery are motivating customers to increasingly forego traditional restaurants for digital-based options. To stay competitive, it’s essential that franchisors—even those specializing in dine-in experiences—consider offering a delivery option as well.
4. Flexibility & Responsiveness To Customer Preferences
In today’s ever-growing and ever-changing food service market, it’s essential that franchisors remain flexible and responsive to the changing preferences and tastes of their customers. Customers are increasingly looking for healthier, more nutrient-rich options on menus, as well as plant-based and vegan options.
Furthermore, customers are also growing more aware of sustainability and environmentally friendly practices. It’s important for franchisors to stay informed of these trends and be willing to update their menus to stay competitive. Providing customers with the options they are looking for will ensure the success of your restaurant.
5. Use of Technology
In a highly competitive market, using the right technology can play a major role in the success or failure of a business. Technology solutions like those from Brizo can help foodservice operators monitor their progress, make smarter decisions, and create more efficient processes.
For example, the right technology solutions can significantly reduce food waste and increase profitability. It can also provide real-time insights into market trends and consumer preferences. This helps restaurants stay ahead of the competition and make more informed menu changes.
6. Localization & Customization
Your customers will appreciate personalized experiences that match their local context and culture. It’s worth considering if there are unique characteristics in your target area that you could emphasize in your offering or boast about in your marketing. Things like locally sourced ingredients, regionally inspired dishes, or a desire to use certain technologies can make your restaurant stand out from competitors and attract more guests.
7. Social Media Savvy
Social media usage is at an all-time high, and savvy restaurateurs are leveraging this platform to the fullest. If you want to make your mark in the foodservice industry, you’ll need to utilize social media platforms. Restaurants can use these platforms to share promotional content, highlight special dishes, and showcase updated menus and specials. Doing so allows franchisors to build relationships with customers, increase visibility, and attract more customers.
8. Menu Items ‘As-A-Service’
Today’s foodservice market is moving away from traditional methods of ordering. In their place, ease-of-use technologies such as ‘As-A-Service’ menus are becoming more popular. As-A-Service menus guide customers through the ordering process in a more convenient and efficient way.
Instead of simply printing out a menu and leaving it up to the customer to make a decision, As-A-Service menus provide images of menu items and allow customers to quickly build their order. This method of ordering has been proven to increase customer satisfaction as well as profitability.
9. Emphasis On Food Quality & Safety
Food safety has always been a top priority for the foodservice industry. With increased concern about food privacy and quality, it’s essential that franchisors focus on the quality of their ingredients and the safety practices of their kitchen staff.
Consumers are looking for transparency when it comes to the ingredients they’re consuming. High-quality, locally sourced ingredients will make your restaurant stand out from competitors and help to build trust with your customers. Additionally, following food safety practices will ensure customers always receive the safest and most nutritious meals possible.
10. Delivery & Dine-In Hybrid Models
Restaurants have been forced to quickly adapt to the challenges posed by the pandemic. To stay competitive, many have adopted hybrid models that combine both delivery and dine-in experiences. By implementing this approach, restaurants can complement their traditional dine-in experience with take-out and delivery. As a result, they can reach more customers and capitalize on the demand for convenience without sacrificing in-person dining.
Conclusion: Unlocking Your Food Service Market Expansion with Data-Driven Insights
Organizations looking to break into the food service market have access to a wealth of data that can be used to make smarter decisions. Knowing where to look and then utilizing the right techniques are essential components of success.
The top 10 food service market trends discussed in the article are just the tip of the iceberg. With the right data, franchisors can take a data-driven approach to decision-making and create a clear path towards market domination. By leveraging insights from the right data sources, franchisors can identify the most lucrative local markets and the most effective strategies for expansion success.
