The food & beverage industry has been drastically shaken up by the coronavirus pandemic, forcing restaurant owners and franchisors to think of new ways of operating. With the world turning to more online solutions, at-home food trends have seen a rapid surge in 2020 and many in the food & beverage industry are assessing the pros and cons in order to develop an effective strategy for their business.
An understanding of the advantages and disadvantages of utilizing at-home food trends can provide franchisors with the data-driven insights they need to optimize their business models and acquire a competitive edge. This article examines the benefits and potential pitfalls of these trends and examines the methodology franchisors can use to adequately determine the value and scalability of utilizing such trends.
What Are At Home Food Trends?
At home food trends refer to the trends in which individuals purchase pre-made meals, order ingredients, meal kits, and other grocery items online and have them delivered straight to their door. This growing trend has made it easier than ever for people to purchase food items from the comfort of their home. Moreover, the convenience it offers combined with the health benefits of preparing food at home have made these trends increasingly popular during the pandemic.
Pros of At Home Food Trends
At home food trends have offered restaurants and franchisors the opportunity to diversify their offerings in order to meet the demands of increasingly health-conscious and time-pressed consumers. With less time and/or desire to go out to eat, at-home meal delivery and takeout services have filled the gap. Restaurants and franchisors that have been able to capitalize on this trend have seen massive success.
Another advantage of at-home food trends is that the processes that are used to produce these items can be more efficient than traditional methods. By leveraging apps, online ordering, and delivery services, food production can be automated, which in turn can reduce costs and increase scalability.
Additionally, utilizing at-home food trends can help restaurants and franchisors to reach a larger market. For example, delivery services can extend franchisor’s reach beyond the local market, allowing them to target customers in far-off cities or even in other countries.
Cons of At Home Food Trends
Despite the various advantages, this trend has some potential drawbacks. For example, using delivery services can be expensive and can add extra costs to the franchisor’s operations. Moreover, there is also the risk that the quality of food will be compromised by delivery services or meal kits. Additionally, the customer base may not be completely engaged in what is being offered, resulting in lowerthan-expected sales.
To address these issues, franchisors need to ensure that they are using the right technology and are following best practices to ensure a satisfactory customer experience. Moreover, franchisors need to be aware of the limitations of what can be achieved with delivering food. For example, certain cuisines may not be suited for delivery due to their complexity and need for presentation.
Evaluating At Home Food Trends
In order to fully benefit from at-home food trends, restaurateurs and franchisors need to carefully evaluate them to determine their scalability and profit potential. This can be done by using data-driven insights and research to assess the needs of the target market. Tools such as Brizo provide detailed reports that allow franchisors to look in-depth into menu options, delivery services, and customer feedback.
Moreover, franchisees are advised to leverage customer feedback and reviews to better understand customer habits and preferences. This information can be used to determine which products or services are more successful and identify areas for improvement. By analyzing the data from both Brizo and customer feedback, franchisors can determine which at-home food trends they should utilize to optimize their business model.
The bottomline
At home food trends have significantly impacted the food and beverage industry, offering new and innovative solutions for restaurants and franchisors to shift their business strategies. While these trends offer numerous advantages, there are potential pitfalls that need to be considered. Therefore, it is essential to use data-driven insights and research to properly evaluate the profitability and scalability of at-home food trends. By doing so, franchisors can gain a competitive edge and develop an effective strategy to capitalize on these trends.
