In just a few short weeks, colleges and universities across the United States will welcome back students for their fall 2023 semester. In addition, many corporations continue implementing and adjusting their return-to-work plans. At IHS, our team has been in the field, educating and inspiring our clients and their operators to continue transforming their onsite food and hospitality services to deliver enhanced experiences.
We’ve compiled the top trends our IHS team recommends and our clients embrace.
1. Desire for Quality & Experience —Laura Lozano, Senior Associate
One client began “mobile order and pay” at all retail establishments during the pandemic, creating frictionless transactions with robot delivery or pick-up. As we shifted to a new normal, the client wanted more functionality and a better guest experience. By upgrading digital menus to include photos, more descriptive menu explanations and re-introducing in-person ordering, they achieved a 10% increase in average checks at all retail locations. “Guests will wait for the best quality and custom-made dishes,” Laura said.
2. Weekly Menu Planning — Gary Gunderson, Principal & COO
In many cases, employees are back in the office 3-4 days a week, meaning operators struggle to forecast how many employees will be onsite. Gary noted that operators are pivoting from daily menus to weekly menu planning, allowing more efficient purchasing, production, and reduced waste. On Fridays, operators offer an all-day self-serve brunch menu and enable efficient use of labor by not opening every station. “Workplace food service continues to evolve and be reimagined,” Gary said.
3. Reducing Carbon Footprints through Design — Gary Gunderson, Principal & COO
As more organizations develop strategies to reduce their carbon emission footprint, designers and architects have become more creative with landscape design, Gary reported. “We are seeing a trend to design facilities maximizing natural light, outdoor views, terraces, rooftop herb gardens, and walking and bike paths connecting every corner of the campus,” he said. “We also are seeing production kitchens running exclusively on electricity.” This is a model for sustainability and provides higher levels of LEED certification.
4. Food Labels: Now Digital eLabels — Anne Huyge, CrossCheck Evaluator
An industry best practice has always been to label foods. “The type of information and presentation, however, has rapidly evolved,” Anne explained. “And, for many, it is still the ‘old-fashioned’ manually typed and printed signage.” However, digital eLabels are beginning to pop up across the food service industry. This allows consumers to scan a QR code and easily access needed information like full ingredient lists and allergen/nutritional breakdowns. Drawing on her experience as an operator, Anne shared that this technology can offer increased efficiencies, reduced printing costs, and even visibility into when and how the information is accessed.
5. Sustainability: Balance of Economic Growth, Environment & Personal / Social Well-Being — Al Frankey, Director of CrossCheck QA
In a 2021 Pew Research Center study, 37% of Gen Z participants said addressing climate change was a top Only 27% of Gen X and Boomers said the same. Sustainability impacts almost every aspect of the food industry, from sourcing ingredients to production, packaging, and shipping. Al noted that trends in upcycling, carbon neutrality, and zero waste are parts of a broader issue that now encompasses non-environmental topics such as social justice, animal welfare, workers’ rights, and economic equality. Buying habits are directly linked to a company’s sustainability policies and practices. “They choose those with comprehensive sustainability plans with visibility into activities and results,” Al observed. “This fuels the generation wanting to know their purchases support a sustainable planet.”
6. Technology Across Campus (Not Just Colleges and University Campuses) — Bob Wolkom, Senior Associate
“New technologies are driving operational efficiencies and improving the customer dining experience,” shared Bob. “Pre-order systems for retail are replacing – and in some cases, adding to — the options for ordering meals. Delivery includes food lockers, mobile robots, and Grubhub or Thrive apps.” Customers overwhelmingly support these programs as they provide seamless ordering/payment, flexibility to order in advance based on schedules, and the ability to tie payment to a meal program, such as swipes, dining dollars, etc. Students, in particular, have become accustomed to these technologies and will undoubtedly expect similar platforms as they begin their professional careers in the corporate world.
7. Contracts: Back To P&L? —Bob Wolkom, Senior Associate
Bob also said that clients traditionally operating under a P&L financial model often switched to a cost-plus/subsidy model during and post-pandemic but are now looking to revert to a P&L. However, operators are hesitant to take on the risk due to hybrid return-to-office policies and the uncertainty of building population and participation. To ensure operators are protected, they are requiring clauses covering short-term termination for convenience or material changes. “Clients and operators must partner and align on population baselines and other metrics to ensure ongoing surveillance” to manage fluctuations that potentially hurt the financial model, Bob noted.
8. Robots in Food Service: Transportation & Production — Ron Hagen, Senior Associate
The use of robotics is quickly being integrated into food service operations. “Increased labor costs and a high rate of staff turnover are driving this shift,” noted Ron. Robots deliver or transport food, carts, and inventory. They’re also producing food, whether that’s using fryers and flipping burgers in the kitchen or making salads and smoothies at unattended retail machines. “Early studies are showing overwhelmingly positive reactions from guests,” Ron reported.
9. Frictionless Shopping: Tap, Grab, & Go, Literally! — Tim Sheaffer, CrossCheck Evaluator
Before joining IHS as a CrossCheck evaluator, Tim’s first experience with frictionless shopping was at Brightline Train Station’s MRKT on his way from West Palm Beach to Miami. While he loved his shopping experience (and was charged correctly), he viewed it then as still an unproven concept of the future. Since joining IHS, Tim shared that his views have completely changed. He noted that several clients have embraced unattended retail or frictionless shopping experiences. These frictionless experiences are also popping up at retail locations in airports and grocery stores nationwide. Consumers enjoy a more streamlined shopping experience – tap your card, grab your products, and go … literally!
10. Generational Differences with Today’s Workforce -— Mike Salzer, Consultant
To help navigate generational differences, Mike turns to behavioral researcher Jason Dorsey and the authors of First Globals, John Zogby and Joan Snyder Kuhl, and makes two relevant points:
- It is important to educate managers to understand better the different social norms based on age. Armed with this knowledge, they will be better equipped to capitalize on employee engagement and productivity.
- Older employees view advancement in the traditional sense (“you need to put in your time”), but Millennials value results over tenure. They will get impatient if they do not move up quickly in the organization and look for other opportunities, so celebrating their successes becomes much more important.
Our clients and their operators are embracing these 10 trends across the food service industry to serve their customers better, drive operational efficiencies and help make the world a better place.
Want to share an 11th trend with us that you’re seeing, and we didn’t mention? We’d love to connect.
Whether you’re getting ready to welcome back students in a few short weeks or adjusting your business’s return to work, the IHS team stands by, ready to educate, inspire and share our insights and expertise.
Continue the journey,
Gary, Matt & the IHS team