As the second largest employer in the US, with 13.5 million employees, the food service industry has an enormous economic impact. Almost half of all money spent on food is spent at restaurants; in 10 years spending on food outside the home has gone up from 40.2 billion dollars in July 2004 to 58.4 billion dollars in July 2014 (see more here). As consumers make the public space the new hub of their social lives – spending less and less time at home – what is required of a restaurant changes. Before the 21 century a restaurant’s success was based on three principles: price, quality, and location. Today there is a fourth principle – environment. It’s not longer enough for a restaurant to serve great food; it also has to feel like home.
With consumers more likely to bring their electronics into the establishment, it is important for restaurants to provide the infrastructure to support increased use of gadgets like tablets, smart phones and laptops. Accessible internet and outlets make patrons comfortable whether they’ll be there for a quick meal or hours of studying. The trend is to make the environment of the restaurant, whether it is fast-food or fast-casual, more accommodating to the consumer – making the restaurant feel like a home away from home. Consumers no longer just want fast service, they want to sit down, get comfy and browse the internet. In addition to this trend of accommodation, consumers are looking for a change in the food they eat. According to the2014 Culinary Trends report by the National Restaurant Association, the Top 5 trends in the food service industry are: locally sourced meats and seafood, locally grown produce, environmental sustainability, healthful kids’ meals and gluten-free cuisine (see more here). These trends are an outgrowth of the desires of the millennial consumer to be healthier and more eco-conscious than the generations before them.
While it is important to stay on top of current trends, it is even more important to anticipate and be proactive about the future. Millennials are already changing the food service industry with their desire for eco-friendly, local and sustainable food and increased social media usage but Generation Z will change it even more. These are the children of the 21 century, born in 2000 or later, who will drive an increased use of social media and technology in the industry from marketing on Twitter or Instagram to ordering via tablet. Look to them to create the future of the industry.