Future Out-of-Home Experiences in the Foodservice Industry – Analyzing Consumer Insights, Trends, Sustainability and Case Studies

Future Out-of-Home Experiences in the Foodservice Industry Overview

The pandemic, technology, and social media are rapidly changing the types of experience consumers seek. The currently difficult economic conditions in which the foodservice industry finds itself are having a negative impact on the out-of-home experience, but as the market recovers innovations and investments will pick up.

Post-lockdown the initial surge in out-of-home sales was driven by the fact many consumers felt the need to make up for the lost time. However, since inflation has made these outings less frequent many younger consumers seek a more enhanced experience (particularly through digital features) as additional justification of value. Ever-diverging demographics are also making consumers question what purpose dining out spaces serve in their communities. The future of out-of-home experiences will hinge on access to different technologies. Although consumers have been dining out-of-home less frequently over the medium term, enhanced, high-tech, and even luxury experiences are becoming more common.

Future Out-of-Home Experiences in Foodservice Industry Dynamics

Key Drivers: The key drivers influencing the future out-of-home experiences in foodservice industry are social media, experience economy, demographics, COVID-19, and digital innovations. Social media provides an important marketing tool for brands to raise awareness of their products and services. However, it is also creating a better-informed consumer who now expects higher quality products and services. Platforms such as TikTok are educating consumers on appropriate cooking skills and cuisine authenticity, creating higher expectations from ‘experts’ when it comes to dining out. Evidently digital tools and technological innovations have made it easier than ever for consumers to access products and services remotely.

Nevertheless, these features are also being harnessed to elevate on-premise experiences from robot servers to augmented reality (AR) menus.
Moreover, the pandemic has been a catalyst for foodservice brands to scale up takeaway and delivery services, generally making it more convenient and desirable for consumers to eat at home even post-lockdown as a long-term habit. However, the perceived lost time during two years of lockdown means consumers are eager to maximize their experiences when they leave the house, albeit less frequently than before the pandemic.

Key Inhibitors: The key challenges impacting the future out-of-home experiences in foodservice industry are macroeconomic uncertainty, cocooning, and time scarcity. The biggest inhibitor to dining out in the short- and medium-term is the current instability of the global economy. Many businesses and consumers are feeling the pinch from inflation and some economies are facing recession. This is temporarily diminishing the opportunities for brands to invest in enhanced dining experiences, although as inflation stabilizes in the next few years these issues will lessen.

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Future Out-of-Home Experiences in Foodservice Industry Trends

Dining experiences that ‘tell a story’: Many consumers now expect their out-of-home experiences to have value and meaning beyond the product itself. Dining experiences that have a story to tell are often perceived as more authentic because they imply that the brand has put an extra effort towards sourcing and preparation of the food. The storytelling trend in foodservice is only going to grow in the next few years as consumers continue to search for added dimensions to out-of-home experiences.

Cross-cultural menus and cuisines: Increasingly knowledgeable consumers are finding that fusion cuisine can be high-quality and expertly made.  Since the pandemic, travel restrictions have made consumers seek new cultural experiences through food instead, influenced by content on social media. For instance, in late 2022, Nazcaa opened in Dubai, tapping into the nikkei Japanese-Peruvian fusion cuisine trend that is fast-growing in the city.

Demographically targeted dining spaces: Brands offering supportive spaces for specific demographics will appeal to ethically minded consumers. Brands are realizing that post-pandemic there is still a significant appetite among consumers for dining on-premise but many feel these spaces are ill-suited to their needs and personalities.  

Hybrid spaces and the sharing economy: Shared spaces provide cost-savings for brands as well as an elevated experience for the consumer. Apart from the savings on overheads, multi-brand spaces can be a useful way to leverage the idea of extended experiences of products and services. Over 64% of consumers globally say that new experiences associated with product purchases are essential or nice to have, reflecting the growing demand for additional entertainment alongside standard out-of-home experiences such as eating out.

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Future Out-of-Home Experiences in Foodservice Industry Outlook

Scope

• Since inflation has made out of home experiences less frequent many younger consumers in particular seek a more enhanced experience (particularly through digital features) as additional justification of value.
• ​Ever diverging demographics are also making consumers question what purpose dining out spaces serve in their communities.
• While technology in foodservice has typically been thought of as a way to increase access to products and services at home, its continued development in future will drastically alter every aspect of dining out from ordering to additional entertainment.

Reasons to Buy

• Understand the challenges and opportunities for foodservice brands in order to tap into the out of home experiences trend.
• 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.