More limited-time offers, a brisk brunch business, and globally inspired restaurant concepts are on tap for the foodservice sector in 2024, according to a recent Food Institute podcast.
“Brunch seems to be the new dinner,” said Lizzy Freier, director of menu research and insights at research firm Technomic.
Brunch provides a more affordable option for consumers seeking to gather with friends and family, as opposed to dinner, Freier explained. Both lunch and dinner visits at restaurants were down in 2023, compared with the previous two years, she said.
In addition to brunch, the breakfast and snack dayparts—mid-morning, mid-afternoon, and late-night—are also big opportunities for restaurant operators in 2024, she said.
Widespread price inflation in 2023 led consumers to become more cautious about their spending at restaurants, and many have cut back on “extras” such as alcoholic beverages when they dine out, according to Freier. In 2024, she said, the trend toward frugality will endure, as consumers may opt to cut back on ordering through third-party delivery to save money, although they will still likely use takeout and first-party delivery.
Restaurant operators will likely focus on creative ways to provide value and drive traffic, she said.
“We will see the full-service restaurants focusing on pricing to make sure their pricing is in line with their value proposition,” said Freier. “They have to provide exceptional experiences to help consumers justify the spend.”
Limited-service concepts are more likely to perform well in 2024, she said, as are noncommercial concepts such as travel and recreation facilities that were hit by a sharp slowdown during the pandemic but are poised to recover in the year ahead.
Globally Influenced Cuisines
Other areas of the foodservice segment that are expected to continue to grow in 2024 include concepts featuring ingredients and cuisines from around the world. Young consumers in particular are inclined to experiment with new flavors, and more and more startup concepts are tapping into this trend, said Freier.
Cuisines from Africa have gained popularity in foodservice, she said, citing an eight percent increase in Ethiopian flavors on menus in 2023. In the year ahead, Freier also predicted growth in flavors from the Caribbean and the Middle East, among others. She noted that Technomic’s Future 50 report, which looks at the fastest-growing small restaurant concepts, features several up-and-coming globally themed operators, such as Curry Up Now, an Indian concept that saw 36 percent sales growth in the past year, according to Technomic’s research.
Other fast-growing globally influenced restaurant operators include the Mexican-food concepts Agave & Rye and Tacombi, as well as some Greek restaurant concepts and several Asian restaurants.
Many of the fastest-growing, globally inspired restaurant chains have taken a page from Chipotle’s playbook in terms of offering the ability for diners to customize their orders. Cava, the Mediterranean concept, is one example. Many of these concepts, including Cava, focus on offering bowl dishes, which tend to be ideal formats for customization and are also well-suited for eating on the go, said Freier.
“I think we will see a lot of global concepts offering customization and that bowl-driven format,” she said.
LTOs Will Remain Hot
Other trends to watch in 2024 will include an ongoing focus on limited-time offers, which have been up 45 percent at the largest restaurant and convenience-store chains in the last five years, according to Technomic data. These offers can help generate excitement, create points of differentiation from competitors, and drive traffic and incremental sales, said Freier.
Often operators use LTOs to focus on unique items, and sometimes rely on consumer interest in nostalgia to re-introduce previously popular items as LTOs, she said, citing the popularity of the Grimace Shake and Grimace Birthday Meal on social media in 2023. In addition, this past fall McDonald’s introduced two new dipping sauces for a limited time—Sweet & Spicy Jam Sauce and Mambo Sauce—unique, on-trend items that were also heavily promoted on social media by influencers.
“McDonald’s is excellent at marketing, and especially marketing to specific audiences,” said Freier.
Beverages are another area of the foodservice sector likely to see growth in 2024, she said, citing specialty coffee-cafe concepts in particular, but also other innovations around energy drinks and refreshers. Technomic’s Future 50 restaurant list includes six different coffee concepts, including two in the top five: Seven Brew and Black Rifle Coffee Co.
Specialty coffee concepts also appeal to young consumers, Freier explained, as they provide opportunities to indulge in treats at less cost than ordering a full meal.
“It’s a different kind of occasion,” she said. “I think we’re going to see a lot of coffee and beverage concepts starting to thrive in 2024.”
Related: Foodservice Outlets Merchandise to Go Viral; Report: Specialty Food Retailers Set to Grow