With a string of advancements in technology and restaurant trends, the food industry is changing rapidly. To stay competitive in the food service sector, getting an accurate picture of what the future holds in terms of market size, trends, and expenditure is key. The world of food forecasting can be overwhelming but understanding the essentials is important, and to help you make the most out of an industry-specific analysis, so we’ve put together the top 10 things to consider when planning and forecasting for the food industry.
1. Global, Regional and Industry Penetration: Knowing a region’s overall economic performance or the latest trends in food and beverage spending can give you a better understanding of where your company stands or can stand in the future. Global data can also provide insight into regional industry penetration that can help you target new areas of growth.
2. Menu Analysis: With the present times, inhibiting customers from visiting restaurants, the ability to analyze and monitor menu changes is a critical aspect of assessing customer preferences. Keeping an eye on what’s trending in terms of ingredients, portion size, and entree offerings can give a better understanding of which restaurants are faring well or struggling.
3. Restaurant Tech: Technology is rapidly revolutionizing the restaurant industry, with tens of companies offering a variety of self-service, order management, and customer engagement solutions. Analyzing the innovation and uptake rates of certain technologies in the food industry can prepare companies to make better informed decisions in the future.
4. Dining Trends: The restaurant landscape has changed dramatically over the last decade, with customers being more conscious of their dietary needs, conscious purchasing, and health-related worries. Anticipating these trends can give your company an edge in preparing for the future.
5. Operating Costs: Operating costs including wages, rent, and food cost can significantly influence a business’s overall profitability and stability – so understanding key industry performance metrics and pricing dynamics can provide valuable insight for your business.
6. Market Forecast: Many traditional forecasting methods are not designed to effectively capture future economic disruptions. Companies that use proprietary forecasting models employ data analysis techniques to identify emerging trends and provide an edge in the ever-changing foodservice segment.
7. Performance Measurement: Developing a thorough understanding of how your business is performing relative to the rest of the market is an important component of ongoing performance measurement. Companies can use real-time metrics to identify areas of strength and weakness before competitors, drive growth, and anticipate market changes.
8. Brand Loyalty: Insight into the sentiment of customers can be the difference between success and failure. Companies can analyze customer feedback and sentiment to personalize their offerings and build better relationships with customers that result in greater loyalty over the long term.
9. Competitors’ Strategies: Knowing what your competitors’ strategies are can be the key to staying ahead of the competition. Analyzing the strategies of leaders in the space can give a comprehensive understanding of market trends and potential growth opportunities that can be capitalized on more effectively.
10. Brand Expansion: To remain competitive, it’s important to consider brand expansion. Understanding customer preferences, market trends, and competitive landscape can help identify acquisition opportunities and new markets to enter.
