Many restaurants have faced an economic roller-coaster the last few years with the start of the pandemic, then hiked food costs and labor shortages. That said, those recent events have changed the food industry in many ways, and a recent report from Nation’s Restaurant News forecasted new concepts and trends for the years ahead.
The report, “36 Restaurant Industry Predictions for 2023,” highlighted multiple trends with new consumer food interests, such as West African cuisine and emerging concepts from large restaurant chains’ business strategies to marketing, menu and consumer trends and more.
This report complied a few highlights with supporting reports to get an idea of what’s ahead for consumers and employees in the restaurant world.
Smartphones and Technology
It’s a no-brainer that tech applications in daily operations and consumer engagement with smartphones are only going to grow in most businesses, including the restaurant industry; according to the report, “52 % of quick service restaurant sales are projected to be digital in 2025.”
Everything from ordering and delivery to marketing on TikTok and smartphone customer engagement will be vital this year and in the future.
Taking it a step further is the new Mcdonald’s that opened in Texas last month, which is totally automated. The restaurant is drive-through and take-out only. Customers that order ahead drive through a separate lane that serves them via a conveyor belt, according to a report from the Houston Chronicle, with no human contact and everything automated.
Flipside: Low-tech as counterpoint trend
To counter the lack of human connectedness in future restaurant trends, a novelty backlash in some regions across the country could gain steam, according to the report. Everything from paper menus to welcoming servers to the retro diner concept could see a resurgence in the next year.
A separate report collected data on tips to win on customer experience in 2023; according to Franchising.com, critical results showed customers are looking for human connectedness. Maintaining customers during a down market means becoming closer to them and their needs and practicing genuine listening when communicating.
Employee Benefits
The industry has been forced to offer better wages and benefits to tackle labor issues. Some are known to have immigration reimbursement, child and elder care coverage, mental health services, college tuition support, same-day pay options, employee resource group offerings, and more, according to the report.
States such as Michigan have recently increased the minimum wage for workers and included an hourly increase for tipped positions for servers, according to the Huron Daily Tribune.
Inflation and Recession: Expansion strategies expected to slow down
Recession fears and an economic downturn will cause expansion ventures to slow way down, according to the NRNs. Explaining that the restaurant industry is still rebuilding after the pandemic, food cost hikes, and that takes time.
“The anticipated economic downturn isn’t likely to cause as many restaurants to close as did during the pandemic, but it will very likely keep the pace of growth slow, particularly as business loans become more expensive,” the report said. Adding that in 2023, “patience is a virtue” for restaurant owners.
Loyalty Programs on the rise
With families across the nation enduring higher costs on groceries, electricity, insurance, and the list goes on, loyalty program discounts are on the rise. The app programs offering discounts for loyal customers are a big win as 2023 marches on, the report predicts.
An example is the Jimmy John’s loyalty program recently launched that includes a game-type allure providing online badges for customers with freebies and discounts if they purchase a variety of different sandwiches. May restaurants are expected to up their game on the loyalty program apps.
Flipside: Expensive restaurants maintain well
The counterpart to the report explains the expensive high-dollar restaurants selling premiere items such as Wagu steaks and top-of-the-line caviar have faired well amidst the pandemic and any recession concerns. “The higher the prices, the longer the wait times,” the report said.
For the percentage of Americans in the higher tax brackets paying more for high-quality items during global impacts did not detour from going out to fine dinning.
US restaurant trends and consumer changes in the year ahead
