BUSINESS: What are the Next Big Restaurant Industry Trends?
With a new decade here, what's the next big thing we should be expecting in food? What are consumers looking for -- or demanding -- when it comes to choosing their favorite date-night venue, lunch time go-to, or girls-night ground zero? The answer is: a lot. In fact, industry research indicates that the coming year for restaurants won’t be a quiet one. Here are some industry trends operators can expect this year and beyond.
DID YOU KNOWS…
Margot Robbie was a Sandwich Artist
Before she became an Academy Award nominee and played Harley Quinn, actress Margot Robbie was a “sandwich artist” for Subway. In a recent episode of Hot Ones, she talked about her time in the food industry, praising her skill for being able to spread “everything out to the edges evenly.” She also says she doesn’t go to Subway to order often because “I watch them make it badly – and I’m upset.” As always, Hot Ones is an entertaining interview. Watch the Margot ep here.
Recovering from Coronavirus
As the coronavirus continues to spread, global media coverage has been predominantly focused on the number of new cases of the virus recorded around the world as well as the number of deaths it has inflicted. Statistics regarding the number of people recovering from the coronavirus have not attracted as much attention but they do exist. According to tracking from the Johns Hopkins University, at least 4,200 people have made recoveries, the vast majority of them in China (as of February 11, 2020).
FloSports Launches FloBaseball
FloSports is an OTT sports broadcaster that is making big strides to get in front of more eyes this year. Earlier they announced FloBikes, which will offer 75 events including the Tour de France in Canada. Now they’ve announced the launch of FloBaseball, which will stream more than 700 baseball games from the NCAA to youth baseball. This includes early-season NCAA tournies; regular-season Big Ten, CAA, and MEAC games, and the ECAC championships. Be sure you’re subscribed to the SportsTV Guide to get a full listing of games on FloBaseball and every other sports broadcaster.
MILLENNIAL KIDS
Why it matters to you: Most of today’s parents are from the Millennial generation and this is what they want for their kids.
Yup, if you were born after 1981 and before 1997, then you are both a Millennial and a grown up. Of course, Millennials are having fewer children than any generation before them, but they are still having them. And they are the largest generation in terms of parenting children under 18 years old. This infographic tells a comprehensive story about the preferences of Millennials as they navigate dining out with their children. The most interesting idea that is trending for kid’s menus over the last year is a focus on breakfast. The inclusion of breakfast items on kid’s menus spiked upward 17.5% over last year.
Whether it’s a breakfast menu item or not, almost 30% of Millennial parents choose a restaurant if they have healthy items included in their kid’s fare. Furthermore, 44% of Millennial parents say they will more likely visit a restaurant with updated kid’s menu items that includes more sophisticated menu items. The message is clear: healthy and creative is the way to attract Millennial parents and their children. The good news is that you can charge an appropriate price for those more sophisticated menu offerings. So, take a hard look at your kid’s menu and try out some new items. You’ve got nothing to lose and maybe a lot of family business to gain.
[Source: Restaurant Business Online]
DON’T BE DUPED
Why it matters to you: January sales benefited from warm weather, but traffic remains problematic.
If you simply looked at the January sales results from chain operators, you would feel optimistic about the trajectory of 2020. While sales did increase by 2.1% to begin the year, the sales growth needs to be understood in context. Most of the month had been mild and inclement weather free, which experts believe is the underlying cause of that sales growth. The number that brings us back to earth is the traffic drop of an additional 0.7%. Experts project, just as a sales drops from a heavy weather month is understood in context, so too should we understand that January’s sales growth is not indicative of an upward sales trend. You need only look at December and see the prior sales decline of the exact same amount (2.1%) to know that ebullience is misplaced for January’s results.
In fact, when viewed regionally you can see it more starkly. For example, in the mid-Atlantic, which includes Washington DC, sales were up almost 5 points. However, in Texas January sales flopped by over one half of a percent. We have been warning our readers that sales and traffic trends have been negative indicators over the past 8-10 months and we are no less convinced that we are in for a down period. The only thing that may mitigate that is a Presidential campaign. Major national campaigns seem to hold the economy in stasis (at least in people’s minds) until the election ends. The only major exception would be a situation like 2008, where a major inflection point dramatically tanks the economy. Either way, 2020 seems to be a year for change whether we want it or not.
[Source: FSR Magazine]
