The Top 5 Restaurant Industry Trends in 2021

The Top 5 Restaurant Industry Trends in 2021

Everyone has to eat. That’s why it’s no surprise that the restaurant industry is worth over $800 billion dollars!

Despite the challenges restaurant owners are faced with throughout time, the restaurant industry overall, continues to grow.

Although the restaurant industry continues to grow, it will always be faced with changes in consumer preferences that require restaurant business owners to adapt or become extinct in this highly competitive industry.

That’s why it’s important to understand the top 5 restaurant industry trends for 2021 if you are a restaurant owner.

1. RESTAURANT TECHNOLOGY

Since the first Point of Sale systems and virtual dining room management services, technology has played a role in the restaurant industry, and will continue to shape how business is done and how consumers experience a restaurant.  

Restaurant technology comes in the form of automated kitchens, robots, food delivery app integrations into your Point of Sale, and more.

Successful restaurants will take the time to understand how technology can improve operations, profitability, work flow, data analysis, management, and strategic planning.

2. HEALTHY RESTAURANT MENUS

Clean labels are the trend with consumer packaged goods food products, and will be as people realize the fact, food is medicine.

While there will always be a place in America for drive-thrus, we are seeing a shift to healthier options at fast food chains to meet the demands of consumers.

Restaurant owners should consider these changing preferences, and associated impacts on food costs as healthier ingredients can be more expensive depending on the quality sourced, and availability of ingredients.

Restaurant owners can take time to menu engineer for the future by adding tasty, health focused options to their menu, while keeping staples that never go out of style.

With healthier options on the menu, also comes the need to clean up menus and add key health icons such as gluten free, vegan, heart healthy, etc. to a menu as icons replace text in our app based world.

3. RESTAURANT BUYING GROUPS, CO-OPS, AND FRANCHISES

Throughout 2020 restaurant owners were forced to open, close, re-open, and close without warning. This was devastating because small business owners lost a lot of money on wasted or spoiled food products.

Unlike franchises that have a sophisticated, technology driven supply chain management program, the majority of restaurant owners that make up the bulk of small business in America are not operating at this level, and do not have the scale to leverage preferred volume pricing like franchises. Add to that, the talk about raising the minimum wage to $15 an hour across – Houston we have a problem!

Restaurant owners are faced with rising costs, shrinking profit margins, and political forces outside of their control.

This is why the future of small business restaurant owners will have to form regional co-ops to source products and manage ingredients in a manner that allows them to receive favorable pricing instead of one-off pricing in order to stay competitive with franchises.

Another option is to franchise a great brand or give up operating a single restaurant to join a franchise that has buying power, higher margins, and innovative technology to stay competitive in the restaurant industry.

The good ole days of mom and pop restaurants are coming to an end given the imbalance in public policy, rising insurance costs, and rising food costs.

Today, Americans are accustomed to the supersize mentality and the Amazon mentality, that more for less is the best way to live putting rising menu prices and smaller portions at odds with the mentality that’s the norm in how the majority of American consumers perceive value. 

Knowing these challenges, restaurant owners must consider ways to increase profit margin and reduce food costs. One simple way is found in economies of scale.

4. ENVIRONMENTALLY FRIENDLY RESTAURANTS

Restaurant owners are being forced to comply with environmental regulations that differ across the world.

Given the geopolitical focus on global warming and environmental concerns, restaurant owners should adapt for changes at the regulatory level and at the consumer level.

Changes may actually add value to a restaurants brand. For example, grass straws are the latest thing and don’t look bad in a tropical drink!

Meeting the needs of our environment must also be outlined in the business plan and operating budget given associated costs for environmentally friendly alternatives, which can be a bit pricier than traditional cups at this time.

Environmentally friendly restaurants are the future, and will be the norm. Environmentally friendly restaurants can also be marketed to speak to consumers who value this option, as a key talking point to the value proposition. Branding can also create opportunities for restaurant owners to offer reusable straws for loyal customers to keep the restaurant brand top of mind.

5. RESTAURANT BRANDING, STORYTELLING, and CUSTOMER EXPERIENCE  

Technology has created a highly transactional consumer base where people search for peer reviewed and peer rated selections. Understanding the power of external validation in our tech driven world is key to defining and differentiating your brand.

While restaurant owners can show up on food delivery apps for “Thai food near me,” brand is the driver to customer loyalty, repeat sales, and word of mouth on social media today.

Restaurant owners should ensure their brand has the following in place:

• Google business page with current hours, location, contact, and website with menu
• User friendly website with menus, brand story, positive reviews, and other options like catering, delivery, etc.
• Reputation management strategy and person in place to respond to social media reviews, including Yelp reviews
• Marketing budget to pay for online targeted ads to locals who can give your restaurant a try
• Brand logo that looks good on a website and good in a small icon on food delivery apps and social media sites
• Customer journey map detailing every touchpoint and interaction a customer has with the restaurant, staff, and third parties like valets or food service delivery drivers; and outlining WoW moments along the customer journey to get people talking and to reduce negative comments online that can ruin a brand overnight 

Restaurant owners who spend the time creating a brand experience that is on-point will typically be rewarded with repeat customers, positive reviews, and a consistent revenue stream.

Restaurant Industry Consultant

Hiring a restaurant industry consultant is a wise investment to ensure you have a fresh perspective, analysis, and insight needed to operate successfully operate a restaurant. A restaurant industry consultant can help you with:

• Brand Marketing
• Online Presence and Website Development
• Growth Strategies to Increase Revenue 
• Customer Service Training and Team Development 
• Implementing New Technology 
• Thinking Strategically to Solve Problems 

and other needs within your restaurant that you know are on the top of your mind as a restaurant owner. 

Having experience starting a regional brand and working for a Fortune 500 company on the franchise development side, I consult restaurant industry owners, management groups, and entrepreneurs helping them grow their brands, develop new concepts, and increase customer loyalty with effete strategies. 

Ready to address the challenges you’re facing? Schedule a FREE consultation with me right now.