Global Growth to Remain Steady but Key Geographies Slowing Down
Global GDP growth in the next five years is projected to reach similar levels to the last five (averaging 3.6% annual growth). Since the firestorm of the global financial crisis in 2009, the U.S. has recorded one of the longest streaks of economic expansion in its history. While a slowdown from ~3% to ~2% growth in the U.S. may not seem like much on the surface, it actually translates to a “loss” of more than $70 billion for the economy in 2019 alone.1. The Rise of Online Ordering
Rise of Delivery Services
According to the National Restaurant Association, three in five U.S. consumers order delivery or takeout at least once a week. Delivery sales could rise an annual average of more than 20 percent to $365 billion worldwide by 2030, from $35 billion according to investment bank UBS. A recent study conducted by CHD Expert shows that restaurants will see this revenue from a variety of venues:
· Pick-up is projected to generate $124 billion in sales this year.
· Direct delivery from a restaurant: $32 billion.
· Delivery from a third-party delivery company: $13 billion.
Experimenting with Dining Experiences
For decades, quality of food and service has been at the center of the restaurant industry. With so many establishments making great food and providing exceptional service, what are restaurants doing to set themselves apart? In 2019, the industry will continue to move toward out-of-the-box experiences for consumers. Long gone are the days of typical two-for-one meals and happy hours. Restaurants are now pushed to ask themselves what they can do to offer diners an experience that they’ll never forget.
Consumers Spend Consciously
In 2019, the word transparency holds a different meaning than it has in recent years. Instead of simply sharing the local farm where you buy your beef and chicken, customers are interested in a well-rounded transparency message beyond sourcing details. This multi-faceted approach will start with manufacturers and operators, which Restaurant Business expects will have customers demanding full transparency on pricing, by revealing true net costs and unbundled costs; corporate performance, by emphasizing fair trade, diversity, living wages, and executive compensation; and the planet, by publicizing their real environmental impact, conservation initiatives, and progressive stance on animal welfare.
Wellness at the Top of the Industry
While functional foods have been all the rage in the wellness industry, they have recently gone mainstream in the restaurant industry. Data from nearly 9,000 Upserve customers revealed a 149 percent increase in fermented foods (great for gut health) and a 99 percent increase in CBD (a wonder-additive that helps with everything from inflammation to anxiety) on menus in 2018, setting up 2019 as the year of functional foods and drinks. Functional ingredients that are naturally present in foods—like the gut-healthy probiotics in kombucha or calming derivative in CBD oil—have consumers interested in healing from the inside with every meal.
Cultivating Culture to Fight Employee Turnover
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. The industry icon acknowledged the abusive systems that are present in many restaurant kitchens where hazing is commonplace. “The quality of life has to, has to, improve,” Bourdain told the students about to enter the workforce. “As chefs, as leaders, as employers, we are going to have to address this in a serious way.”
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. This progress in the restaurant industry means that owners and managers will feel the pressure to put culture first and offer their hard workers benefits, a stable environment, and opportunities for growth.
The Restaurant Tech Takeover
As restaurants strive to provide a frictionless experience for consumers, restaurant technology companies are aiming to do to the same for restaurant operators. All-in-one restaurant management platforms have become a 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.
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Global Growth to Remain Steady but Key Geographies Slowing Down
Global GDP growth in the next five years is projected to reach similar levels to the last five (averaging 3.6% annual growth). Since the firestorm of the global financial crisis in 2009, the U.S. has recorded one of the longest streaks of economic expansion in its history. While a slowdown from ~3% to ~2% growth in the U.S. may not seem like much on the surface, it actually translates to a “loss” of more than $70 billion for the economy in 2019 alone.1. The Rise of Online Ordering
Rise of Delivery Services
According to the National Restaurant Association, three in five U.S. consumers order delivery or takeout at least once a week. Delivery sales could rise an annual average of more than 20 percent to $365 billion worldwide by 2030, from $35 billion according to investment bank UBS. A recent study conducted by CHD Expert shows that restaurants will see this revenue from a variety of venues:
· Pick-up is projected to generate $124 billion in sales this year.
· Direct delivery from a restaurant: $32 billion.
· Delivery from a third-party delivery company: $13 billion.
Experimenting with Dining Experiences
For decades, quality of food and service has been at the center of the restaurant industry. With so many establishments making great food and providing exceptional service, what are restaurants doing to set themselves apart? In 2019, the industry will continue to move toward out-of-the-box experiences for consumers. Long gone are the days of typical two-for-one meals and happy hours. Restaurants are now pushed to ask themselves what they can do to offer diners an experience that they’ll never forget.
Consumers Spend Consciously
In 2019, the word transparency holds a different meaning than it has in recent years. Instead of simply sharing the local farm where you buy your beef and chicken, customers are interested in a well-rounded transparency message beyond sourcing details. This multi-faceted approach will start with manufacturers and operators, which Restaurant Business expects will have customers demanding full transparency on pricing, by revealing true net costs and unbundled costs; corporate performance, by emphasizing fair trade, diversity, living wages, and executive compensation; and the planet, by publicizing their real environmental impact, conservation initiatives, and progressive stance on animal welfare.
Wellness at the Top of the Industry
While functional foods have been all the rage in the wellness industry, they have recently gone mainstream in the restaurant industry. Data from nearly 9,000 Upserve customers revealed a 149 percent increase in fermented foods (great for gut health) and a 99 percent increase in CBD (a wonder-additive that helps with everything from inflammation to anxiety) on menus in 2018, setting up 2019 as the year of functional foods and drinks. Functional ingredients that are naturally present in foods—like the gut-healthy probiotics in kombucha or calming derivative in CBD oil—have consumers interested in healing from the inside with every meal.
Cultivating Culture to Fight Employee Turnover
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. The industry icon acknowledged the abusive systems that are present in many restaurant kitchens where hazing is commonplace. “The quality of life has to, has to, improve,” Bourdain told the students about to enter the workforce. “As chefs, as leaders, as employers, we are going to have to address this in a serious way.”
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. This progress in the restaurant industry means that owners and managers will feel the pressure to put culture first and offer their hard workers benefits, a stable environment, and opportunities for growth.
The Restaurant Tech Takeover
As restaurants strive to provide a frictionless experience for consumers, restaurant technology companies are aiming to do to the same for restaurant operators. All-in-one restaurant management platforms have become a 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.