After a tumultuous couple of years, has the industry fully recovered?
After years of disruption with government enforced closures across the globe, and consumer anxiety about gathering in a public place, the Foodservice industry is finally seeing some true signs of recovery. But the industry’s story is far from straightforward, with brands having to navigate rapidly transforming consumer expectations on how, when and where we eat.
Restaurants are the perfect get-together for consumers after a long period of isolation. In general, we are going back to our ‘normal’ habits rather quickly, across the OOH landscape, from fast food chains right through to sit down dinners.
Globally, total food occasions are up by 33% versus a year ago – across all channels. This is brilliant news for the industry.
But as this report unpicks, growth is not equal across every channel. Some channels, such as Quick Service Restaurants do particularly well, capitalising on consumers’ desire for ease and offering affordability in an increasingly tough financial landscape. And with over 50% of foodservice occasions now not taking place on-premises, it’s clear there has been a noticeable shift away from OOH consumption to immediately available freshly prepared food, regardless of where we eat. We see delivery winning out as a way to offer consumers ultimate convenience – and we see how aggregators are changing the landscape for our food delivery future.
We are seeing recovery across all regions. It is at its highest in Mexico, at 64% growth followed by Brazil and Portugal at 54%. Something important to note, however, is that the countries have kept the same ranking as last year, which indicates that growth has been fairly consistent across all markets.
But there are now new pressures facing the industry. Inflation is high around the globe, with headlines referring to the cost-of-living crisis and economic hardship. Naturally, this is impacting how we are consuming food in an OOH setting.
Across the board, brands are having to diversify how they entice consumers back to foodservice. Focusing on in-person dining in isolation is no longer cutting the mustard, and outlets are finding new strategies to rebound towards pre-pandemic revenue levels. But who is winning out in the new normal of foodservice?
