Will Foodservice Win or Lose in the Game of Eat in or Go out?
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Foodservice TrendSights Report Overview
Many consumers prefer dining out compared to eating at home due to the superior quality of menu items. Food service providers need to find a balance between affordability and quality. This is because consumers are becoming more price-conscious but maintain expectations of the quality of menu items while dining out.
The “Will Foodservice Win or Lose in the Game of Eat in or Go Out” research report analyzes trends explored on GlobalData’s TrendSights Map. The consumer insight offered throughout the report is drawn from GlobalData’s Q1 2023 and Q4 2022 global consumer survey, a quarterly survey designed to capture consumer sentiment as it evolves throughout the year.
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Foodservice Market Outlook
The foodservice industry has witnessed a variety of challenges to maintain footfall, especially after a critical hit from COVID-19 in 2020. According to GlobalData’s Market Analyzer, foodservice industry sales declined significantly between 2019 and 2020. The market has not yet seen a full recovery in many regions and channels. However, long-term, dine-in channel demand is projected to significantly increase. Eastern Europe shows growing dining-in demand with the fastest expected regional growth between 2022-2027.
The foodservice industry is expected to appreciate through online and offline channels, despite prices increasing for a notable proportion of menu items. According to GlobalData’s Menu Intelligence database, more than 9 million menu items increased in price over a year. This demonstrates that foodservice providers globally are increasing their menu item prices due to rising inflation. To win over consumers, foodservice providers will have to align closely with the Experience Economy trend and ensure a high-quality dining experience for consumers.
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Foodservice Market – Drivers and Challenges
Demand for high-quality dishes is one of the key factors that will help restaurants to win over home cooking. Consumers continue to order from restaurants, as diners have higher expectations of quality compared to home cooking.
Value for money is one of the major concerns that may limit the visit to restaurants. With prices rising due to inflation, consumers remain concerned about their personal finances. This is a motivating factor for consumers to prepare food from home due to lower prices. It is therefore important for food service providers to have affordable meal options on the menu.
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Foodservice Market – Trends Deep Dive
Affordability and health & wellness have been the most influential themes since Q1 2022. Foodservice providers need to offer affordable options to be top-of-mind in food and drink consumption choices. They need to align operational strategies with younger consumers’ preferences. Younger generations—Generation Z and Y—are more likely to dine in at a restaurant compared to consumers in the Boomer generation. It is therefore vital for brands to meet the expectations of younger consumer groups in terms of what is most important to them while dining in.
Mega-trend rankings, 2016-2022
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Foodservice Market – Innovation
Restaurants continue to use strategies encouraging consumers to dine out or choose takeaway options. For instance, Good Food and Aloette Go of Canada. In January 2023, full-service restaurant Aloette partnered with meal kit provider Good Food to offer consumers the opportunity to prepare its menu at home. According to the brand, the menu items were inspired by its Michelin-star chef Solomon Mason, and the meal kit menu options are updated seasonally. This demonstrates how foodservice providers are actively exploring at-home options to accommodate consumers who prefer home cooking.
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Foodservice Market – Takeaways
- To meet consumers’ affordable lifestyle needs, restaurants have been launching more long-term price promotions.
- Food service providers should find alternative approaches to maintain an affordability profile without changes to the quality of menu items. An example of this is Starbucks reducing its size to propose more affordable options for consumers.
- Younger generations are especially showing demand for online takeaway. They are looking for easier and more convenient food options. Dine-in and takeaway are forecast to grow during 2022-2027. This demonstrates the growing opportunity for food service providers to take advantage of creating more purchase points.
Scope
This report is part of the GlobalData Case Study report series, which analyzes trends explored on GlobalData’s TrendSights Map. The consumer insight offered throughout the report is drawn from GlobalData’s Q1 2023 and Q4 2022 global consumer survey, a quarterly survey designed to capture consumer sentiment as it evolves throughout the year.
Reasons to Buy
- Understand the challenges and opportunities for foodservice brands in the face of consumers looking to eat in more often.
- Gain insight into how competitors are responding to this trend.
- Access valuable strategic take-outs to help direct future decision-making and inform new product and service development.
Good Food
Aloette Go
Domino's
Pirata
Del Taco
Tim Horton's
Burger King
Uber Eats
Pizza Hut
Applebee's
Chatime
Starbucks
Heinz
Uber Eats
Table of Contents
Frequently asked questions
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Why do consumers prefer dining out?
Many consumers prefer dining out compared to eating at home due to the superior quality of menu items.
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Where do foodservice providers need to focus?
Foodservice providers need to find a balance between affordability and quality. This is because consumers are becoming more price-conscious but maintain expectations of the quality of menu items while dining out.
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Which theme has been influencing the foodservice sector the most?
Affordability and health & wellness have been the most influential themes since Q1 2022.
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