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There’s plenty for manufacturers and operators to be happy about, given that the foodservice industry is forecast to feast on $1 trillion in sales this year, according to the National Restaurant Association. Hiring is also strong, with the industry workforce expected to grow by 200,000 jobs and reach 15.7 million by end of year.
But instead of a buffet of satisfying stats, the vast majority of foodservice operators are sorting through a mixed bag, including such major issues as rising food prices (97%) and labor costs (98%). What’s more, 38% say their restaurants did not turn a profit last year.
While 9 in 10 consumers enjoy going to restaurants, 45% of operators expect competition to be more intense this year than last, and price-sensitivity compels nearly half to take a wait-and-see attitude toward spending.
Inflationary food costs have fed into menu price increases, especially for fast-food brands, with some increasing prices by double, reported USA Today. In general, raising prices on select menu items is a trend among commercial operators (88%) and to a lesser extent among noncommercial operators (45%), according to the latest Touchpoints 2024 report from The Food Group.
Happy Graze: Four Focal Points with Food for Thought for Manufacturers
While challenges persist, they also present opportunities for manufacturers to reach operators and establish mutually profitable partnerships with a strategic focus on four key areas, as explored in the Touchpoints report:
- Feed their need: Serve up information that zeroes in on the top three motivators that prompt both commercial and noncommercial operators to change the brand or product they purchase: improved quality (77%), price consideration (61%) and labor savings (60%). For noncommercial operators (51%) and full-service operators (55%), menu enhancement is also a must as a motivator.
- Diversify your media mix: An omnichannel presence provides optimal reach and the widest range of information sources. Rather than dig into one, operators engage with multiple marketing channels, including trade shows, distributor/broker reps, manufacturer websites, foodservice trade media and social media (a key source of menu inspo for commercial operators with a million or more in annual sales).
- Talk culinary trends and inspo: Manufacturers should nourish relationships with operators by serving a diversified diet of topics of interest. Foodservice trends top the list as informational tools to help manage business for commercial operators (57%), while menu ideas and recipes rank highest for noncommercial operators (76%). Culinary trends are the content that interests both segments most (46% and 58%, respectively). For ideas and insights, the Future Menus North America 2024 Trends Report from Unilever Food Solutions is an invaluable resource available at no cost.
- Refresh your event strategy: As a preferred source of information for operators, trade shows are a must for manufacturers, and knowing which to attend is key. While operators find the National Restaurant Association Show the most useful (see our social post about this year’s show), smaller local market-specific events (New England Foodservice Show) and smaller national market-specific trade shows (Restaurant Leadership Conference, MenuDirections) should not be overlooked. (For more on industry events, read our previous post, “Moveable Feast: Evolving Industry Events to Bring More to the Table.”)
A Robust Appetite for Menu Innovation
As the Datassential 2024 Food Trends report calls out, menu innovation remains key, driven by high consumer demand for a mix of novelty, familiarity and fusions of the two (aka the “newstalgia” trend).
“Despite budget woes and nostalgia-influenced wants for familiar foods,” the report states, “consumers are looking for operators and manufacturers who will take foods and beverages to the next level.” With nearly 80% of consumers looking forward to food and beverage trends, there’s a hunger for culinary ingenuity that manufacturers can help operators satisfy.
“The fact is, the more manufacturers can position themselves as informed partners for operators, the stronger the relationship will be,” said Pam Bevilacque, TFG’s senior vice president of client relations. “Knowing what challenges operators face and what issues matter most to them is essential for providing the tools and content to help them succeed.”
To pair this post with more insights into how manufacturers can reach operators, sink your teeth into “Foodservice Marketing: 3 Best Practices” and “3 Key Website Insights For Food Manufacturers.” Crave world-class culinary ingenuity? Reach out to our partners at Creative Food Solutions. For custom solutions to any of your marketing needs, contact us at The Food Group anytime.