“I see greater polarisation between service experience-led restaurants and those using tech, however consumers will need to pay more for the service experience, as capacities are going to be reduced for social distancing measures.”

Foodservice as we know it has changed forever. It’s not just the current closures, or threat of December – eight. whole. months. – until we might be able to join friends and enjoy a cool, bitter pint in the pub.  

As staying in becomes the new (mandatory) going out, it’s the threat of consumers’ habits changing, or a nation becoming more fearful of get togethers and mass gatherings. It’s the operational changes our restaurants, bars and caterers will need to make to ensure their survival. 

Following on from last week’s blog on ‘the new normal’ and learnings our industry will take into the future, we spoke to Simon Stenning – our insight partner – who has taken a look to the future, pondering the business changes he thinks will be more prevalent in the new normal. 

Simon says: “In scenario planning that I have been doing for clients, I have mapped out various ways in which business will change according to consumer behaviour and demographics, the macro-economic drivers, and from a business model perspective.

“The most significant difference is going to be in business models, with the following key changes:

A need for greater net profit margins

“Hospitality operators will seek greater net profit margins, with anything <10% no longer acceptable (as it has been), recognising that cash generation and greater reserves is important. If a 5% drop in revenue on any given week means that the business loses money, this is not sustainable, so greater resilience and stability will be sought.

A move towards reducing labour costs

“Operators will seek to reduce labour costs if their business is not providing a high level of service experience, by using technology to replace front of house staff. Tech solutions such as www.Checkfer.com which uses beacon technology to allow consumers to order and pay from the table, or in the case with their app for Pret A Manger, enables the scanning of digital shelf labels to process and pay for products without going to the counter. Checkfer is now developing an industry-wide consumer-facing app called OrderPay which will work in all signed-up brands, but delivers an operator-branded experience through beacon technology. These solutions, which negate the need for staff interaction and card payment machines, will be the biggest change going forward.

 

A polarisation between tech led and experience led restaurants

“This will lead to greater polarisation between service experience-led restaurants and those using tech, however consumers will need to pay more for the service experience, as capacities are going to be reduced for social distancing measures.”

 

The new normal: a personal view

“I am so looking forward to being able to get out and experience the fantastic hospitality from our industry, and have mapped out the places and operations that I will make sure to visit, from a big steak at Hawksmoor, to a blow-out at MeatLiquor, a bacon naan at Dishoom, and a visit to Giplin Lodge in the Lake District to taste Hrishikesh Desai’s food, along with visits to the restaurants that I had to cancel pre-lockdown – Restaurant Story, Hand & Flowers and J SHeekey (I did have a few celebrations planned!).

“I will have concerns about mass gatherings in busy places, not from a personal fear, but from the worry about a future spike happening before any vaccine is developed and distributed, as a series of rolling lockdowns will be catastrophic for the industry.

The long term trends: purpose & fulfilment 

“And lastly, I have outlined a couple of long term consumer trends from my report on the Future 2030, that are more relevant now – Purpose and Fulfilment – and I will also be living my life with greater purpose towards caring for society and for the planet, and will also be setting out new goals so that I can achieve greater fulfilment from all areas of my business and personal life.”

To book in a free consultation with us on how best to reach customers as you plan for market changes, give us a call on 0208 256 1360 or email belinda@williammurray.co.uk