The landscape of the restaurant business is dynamic and ever-evolving, with trends and preferences changing all the time. The year 2024 brings with it both fresh chances and challenges for restaurant owners and operators. A number of significant changes, ranging from evolving consumer behavior to technical breakthroughs, are influencing how people eat out. This blog article will discuss some of the major restaurant trends that will affect dining out in 2024 and how operators of restaurants may adjust to these developments to maintain their competitive edge.
Industry and guest insights impacting going out to eat
Restaurant owners and operators need to be aware of the major trends and insights that affect dining out in the ever-changing restaurant sector. In addition to serving as a baseline for present operations, these insights offer insightful data on how guest preferences, behaviors, and eating habits are changing over time. A number of changes are influencing how people eat out in 2024, so it's critical for restaurants to keep up with these developments and make the necessary adjustments.
Onsite Restaurant Dining
For restaurant managers, increasing foot traffic and throughput are top concerns. Reducing throughput is the most common complaint among restaurant operators whose gross merchandise value (GMV) exceeds $1 million, according to a recent survey. Restaurants should emphasize speed and convenience to draw in more customers, especially Gen Z diners who place a high value on these factors when dining out.
Takeout and Delivery Orders
Due to its speed and convenience, internet ordering for delivery and takeout has become more popular in recent years. Even when dining restrictions loosen, takeout and delivery remain popular choices among Americans. While delivery services provided by third parties, such as DoorDash and Uber Eats, are widely used, some restaurant owners are integrating ordering into their operations to increase productivity and enhance customer satisfaction.
Menu and Ingredient Trends
Keeping up with the competition and drawing customers require inventive menus. The eating scene will be shaped in 2024 by trends including providing more international cuisines, highlighting the origins of components in menu items, and combining hot heat with complexity. Restaurants that remain ahead of these trends have the potential to draw in customers searching for distinctive and thrilling dining experiences.
Overcoming Inflation Challenges
Restaurant owners continue to find inflation to be a major source of frustration as it affects their capacity to control expenses and keep a profit. Increasing menu prices and putting cost-cutting measures in place are two crucial strategies for controlling inflationary pressures. Cost management and profitability in restaurants are greatly influenced by prime expenses, which include labor and cost of goods sold (COGS).
Technologies for Success
The technology used in restaurants is continually developing, giving owners new options to improve customer satisfaction and operational efficiency. Restaurants can draw and keep customers by utilizing guest-facing technologies like loyalty programs and online ordering systems. Restaurant profitability is also being protected by cost control technologies like payroll automation services and cost management software.
Menu and ingredient trends shaping restaurant food
In 2024, menu and ingredient trends are shaping the restaurant industry, influencing what guests choose when dining out. Understanding these trends can help restaurant owners and operators create menus that cater to evolving consumer preferences. Let's explore some of the key menu and ingredient trends shaping restaurant food in 2024:
Spicy Heat with More Complexity
Trend Overview: According to the food trends from the Whole Foods Market’s Trends Council, spicy heat with more complexity is a growing trend in 2024. Consumers are increasingly seeking out bold and complex flavors, particularly in spicy foods.
Menu Implications: Restaurants can incorporate this trend by offering dishes that feature a variety of spicy peppers and sauces, providing guests with a flavorful and memorable dining experience. Consider using specialty peppers like Scorpion Peppers, Guajillo, or Hungarian Goathorn Peppers to add depth and complexity to dishes.
Specifying Origins of Featured Menu Item Ingredients
Trend Overview: Consumers are becoming more interested in the origins of their food, seeking transparency and authenticity in menu descriptions. This trend extends beyond generic descriptions to specific varietal types and regions of origin.
Menu Implications: Restaurants can capitalize on this trend by clearly specifying the origin of their ingredients. For example, instead of listing "apple flavor," specify "Granny Smith apple flavor." This level of detail adds authenticity and transparency to the menu, enhancing the dining experience for guests.
More Global Cuisines on the Menu
Trend Overview: According to Datassential, European cuisine is set to come into fashion in 2024, finding its way onto menus and capturing guest interest.
Menu Implications: Restaurants can incorporate European flavors and dishes into their menus to appeal to guests seeking new and exciting culinary experiences. Consider offering dishes that blend traditional European flavors with modern twists, appealing to a wide range of palates.
Menu Innovation and Adaptation
Trend Overview: Menu innovation is crucial for attracting guests and staying competitive in the restaurant industry. In 2024, restaurants are expected to continue innovating their menus to offer unique and exciting dining experiences.
Menu Implications: Restaurants can stay ahead of the curve by regularly updating their menus with seasonal specials, new dishes, and innovative ingredients. Consider incorporating trending flavors and ingredients to create dishes that stand out and keep guests coming back for more.
Overcoming inflation challenges with menu prices and cost control
Inflation remains a significant challenge for restaurant owners and operators, impacting their ability to manage costs and maintain profitability. In 2024, as inflationary pressures continue to rise, restaurant operators must implement strategies to overcome these challenges. Let's explore how restaurants can navigate inflation challenges with menu prices and cost control measures:
Impact of Inflation on Restaurant Operations
Rising Costs: Inflation leads to higher costs for ingredients, labor, and operational expenses, squeezing profit margins for restaurants.
Menu Price Increases: To offset rising costs, many restaurants are raising menu prices. However, increasing prices too much can impact guest perception and potentially reduce sales.
Cost Control Challenges: Managing costs becomes increasingly challenging during periods of high inflation. Restaurant operators must find ways to control expenses without compromising on quality or service.
Strategies for Managing Inflation
Raising Menu Prices: While raising menu prices is a common strategy to combat inflation, it must be done strategically. Restaurants should analyze their pricing structure and adjust prices where necessary to reflect increased costs.
Menu Engineering: Menu engineering involves analyzing the profitability of menu items and adjusting prices or offerings to optimize revenue. Restaurants can identify high-profit items and promote them to maximize profitability.
Implementing Cost Control Measures: Cost control measures can help restaurants manage expenses and maintain profitability. This includes monitoring food waste, optimizing inventory management, and controlling labor costs through efficient scheduling and staffing practices.
Enhancing Operational Efficiency: Improving operational efficiency can help reduce costs and increase profitability. This includes streamlining workflows, investing in technology to automate tasks, and optimizing menu offerings based on demand and profitability.
The Role of Prime Costs
Understanding Prime Costs: Prime costs refer to the combination of cost of goods sold (COGS) and labor costs. Monitoring prime costs is crucial for managing overall costs and maintaining profitability.
Targeting Prime Costs: Restaurants should aim to keep prime costs around 60% of revenue, with an even split between COGS and labor costs. By managing prime costs effectively, restaurants can improve profitability and weather inflationary pressures.
Conclusion
In conclusion, the restaurant industry is evolving at a rapid pace, driven by changing consumer preferences, technological advancements, and economic factors such as inflation. To succeed in 2024 and beyond, restaurant owners and operators must adapt to these changes and leverage technology to their advantage.
The need of improving the onsite eating experience, the need to reinvent menus to meet changing customer tastes, and the growing competition from fast food, takeaway, and delivery choices are some of the key factors affecting the restaurant sector. Furthermore, sustaining profitability requires effective menu pricing and cost-control methods to manage inflationary pressures.
Restaurant owners may improve customer satisfaction and boost revenue by implementing guest-facing technologies like smartphone applications and online ordering systems. Restaurants can increase profitability and reduce costs by implementing cost control technologies like labor management systems and inventory management software. Contactless payment methods and kitchen automation can further optimize workflows and boost productivity.
