Major Trends Impacting the Food Service Sector

Increased demand for off-premise dining experiences, including takeaway, delivery, and curbside pickup, has resulted from consumers' abundance of dining choices.

FREMONT, CA: The food and service industry has demonstrated remarkable adaptability and fundamental shifts in how consumers make food decisions. It has led to increased demand for off-premise choices, such as takeaway, delivery, and curbside pickup, as consumers have various options for satisfying their appetites. These behaviors took root out of necessity and continue to persist now that consumers have been won over by convenience.

Persistent labor scarcity and supply chain disruption: In the past months, adapting to manage recurring supply chain disruptions and labor shortages has been the standard for operators, and the problem is not going away. For instance, bar and restaurant closures eliminated roughly 2.5 million food service positions. Supply chain issues continuously hamper the food business regarding acquiring ingredients. Nine out of ten restaurant operators across all segments reported supply delays or shortages in recent months. By simplifying menu options, optimizing the food production process, and implementing other time- and resource-saving measures, operators can mitigate the effects of labor shortages and rising expenses.

Enhanced competition for multichannel alliances: Retailers developed a taste for controlling a more significant proportion of food consumption. There is an increase in investment in food service experiences around the store perimeter. Food service providers are likewise eager to attract customers and are doing so by offering a greater variety of foreign cuisines; food consumers prefer to dine at restaurants rather than at home. Food Expenditure Series, inflation, pent-up food service demand, and a spike in scheduled celebrations contributed to a record-breaking level of food spending.

Health concerns stimulate the expansion of plant-based foods: In 2022, consumers' top priority will continue to be a heightened concentration on health. Concerns regarding the COVID-19 virus have pushed the adoption of plant-based diets. Consumers are searching for tasty ways to integrate more vegetables into their diets across the breadth of plant-based foods such as fruits, nuts, seeds, beans, legumes, vegetables, and grains. People seek identifiable plant elements they can feel good about consuming. As more people opt for plant-based goods, we expect demand to continue to climb.