Global Foodservice Trends Bulletin
- incorporating implications for Irish foodservice suppliers
Issue three – May 2011
Prepared for Bord Bia by
Growing the success of Irish food & horticulture
AIDAN COTTER
Growing
the success
CHIEF
EXECUTIVE
BORD BIA
of Irish28food
& horticulture
JANUARY
2009
Introduction
CONTENTS
Globally optimism is returning to
foodservice. The industry performance is
slowly but steadily improving.
Consumer trust in the food industry is
being eroded further. Consumers
demand authenticity, transparency and
credibility from all industry players.
Creating value based on food benefits is
increasingly challenging. Suppliers that
look to achieve long term growth have to
transform themselves from an ingredient
supplier to a solution provider.
Product and industry trends and
implications
What’s hot today: local, sustainable,
nutritional…
What could be hot tomorrow:
North American and European views
Operator trends and implications
Improving performance
Search for benefits beyond food
Growth in Health Fast Casual
Supplier trends and implications
A new transformation
Environmental performance as a key
differentiator
Growing the success of Irish food & horticulture
What’s hot in global foodservice today ?
HOT TRENDS IN THE FOODSERVICE INDUSTRY
Use of social media marketing channels
Restaurants with sustainable design
(Darden Restaurants re-modelling)
Smaller portions for a smaller price
Pop-up restaurants
(Ghetto Gourmet, Red Box Bistro)
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Sous-vide food preparation
What’s hot in global foodservice today ?
HOT TRENDS BY CATEGORY
Newly fabricated cuts of meat
(Denver Steak, Petite Tender, Flat Iron Steak)
Specialty iced teas
Culinary cocktails
Artisan ice cream
Artisan cheese
Growing the success of Irish food & horticulture
Ethnic inspired breakfast items
and ethnic fusion cuisine
What’s hot in global foodservice today ?
The US National Restaurant Association ‘What’s
Hot in 2011’ survey highlights top menu trends
• Locally sourced meats and seafood
• Locally grown produce
• Sustainability as a culinary theme (with
focus on sustainable seafood)
• Nutritious kids’ dishes
• Hyper-local items
•Back-to-basics cuisine
• Gluten-free/food allergy conscious items
Diet conscious menu selection:
• Farm branded ingredients
Steuben’s gluten-free menu
Farmstead, a farm-to-table restaurant
Child nutrition education
Growing the success of Irish food & horticulture
What’s hot in global foodservice today?
Canadian culinary professionals have a similar view on hot trends.
Long Term Menu Favourites
Growing the success of Irish food & horticulture
What could be hot tomorrow?
THE NORTH AMERICAN VIEW
THE EUROPEAN VIEW
Locally source products
Health and nutrition aspects (‘betterfor-you’ menus; forthcoming calorie
count disclosure)
Sustainable fish and seafood
Artisan products
Indigenous ingredients
Menu options to meet dietary needs
Automated menus
Sense of simplicity
Growing the success of Irish food & horticulture
Product trend implications for Irish suppliers
Implications
Consumers long for authenticity. Artisan products provide reassurance and ‘feel safe’ factor. Irish suppliers are well positioned to
capitalise on this trend.
Consumers and operators look for simplicity. Provide practical and
fast solutions.
Nutritional aspects are front of mind and front of house. Attention
should be paid to children’s and adult menu items, whether it be calorie
counts or dietary menu options.
For new products (such as new meat cuts, specialty beverages),
branding could help the sales and marketing effort.
Take ethnic flavours beyond the expected. Investigate ethnic breakfast
interpretations, Asian flavoured desserts, ethnically seasoned seafood.
Embrace social media marketing channels in full and join efforts with
your main foodservice customers.
Sourcing of local products is becoming mainstream and may represent
a barrier in the context of achieving international growth. Make full
advantage of the trend in the home market!
Growing the success of Irish food & horticulture
Seasonal, locally sourced and
low-GI fast food at Leon
Foodservice operator trends
Global operators are reporting improved
performance and returning to the growth path
• The US restaurant sales are expected to reach a
record $604bn and post positive growth in 2011
after a 3-year real sales decline.
• In 2010, McDonald’s reported global growth of
5%, including 3.4% growth in Europe, 4.4% in the
US and 5.5% in APMEA. Consolidated revenues
reached record high $24bn.
• Yum!Brands opened 1,400 new outlets in 2010
(1,391 outside the US) with China, India and
Russia being major growth contributors.
• Spain’s Telepizza is opening 82 outlets in
2011/12, bringing their total to 200.
• Sodexo targets 3-4% internal turnover growth for
2011 and aims to achieve 6% operation margin
and 7% growth by 2013.
Growing the success of Irish food & horticulture
In India, Yum aims to have
1,000 restaurants by 2015
T.G.I. Friday’s is to accelerate
growth over the next 5 years
with the view to double the
number of outlets globally
American Chili’s Grill & Bar is
on expansion path
In Russia
Foodservice operator trends
CASUAL DINING OPERATORS ARE
AMONG THE FRONT RUNNERS
Vapiano is one of
the fastest growing
restaurant
operators in Europe
Stronger operator performance is emerging across
Europe
• French restaurant activity increased by 7% in 2010,
especially in themed outlets.
• KFC will open 38 new outlets in the UK in the course
of 2011.
• Sushi Shop will increase its 50 outlets in France to
100 by end 2013.
• Starbuck plans to open 500 new outlets in 2011 – 400
will be outside the USA.
• Domino’s Pizza has re-entered the German market.
Sausalitos accelerates growth
across Europe with ambition to
become a leading casual dining
operator in the region
• Subway is accelerating its CEE expansion, with 77
outlets opened in 2010.
• A German casual dining chain Vapiano aims to double
the number of restaurants in Europe by 2014 to a total
of 180 outlets.
Growing the success of Irish food & horticulture
Foodservice operator trends
To find new points of difference, operators are
increasingly turning to environmental issues
• Starbucks is trialling paper cup recycling with a
new green goal of making 100% of its cups
recyclable or reusable by 2015.
• Sodexo has introduced electric vehicles to deliver
meals to schools in France.
• KFC is rolling out reusable food containers across
its US outlets.
• Lavazza is working with small coffee producers in
Brazil to develop a sustainable coffee blend.
• McDonald’s France has extended night time
deliveries from 3 to 12 outlets as a pilot to test
reduction in environmental impacts.
• Germany’s Sielaff is launching a vending machine
which collects single use drink packaging.
Growing the success of Irish food & horticulture
Starbucks’
1bn ‘green’ cups
by 2015
Food waste collection and paper
cup recycling are top of Whitbread’s
agenda
Foodservice operator trends
Self Order kiosks
to put control into
consumer hands
According to Emphatica survey, only one in five
consumers feel that restaurant operators successfully
use technologies that enhance their experience. Be it
slowly, the industry is catching up with the retail
sector. Technology is increasingly seen as a vehicle
for building consumer traffic and loyalty.
• Starbucks has launched the Starbucks Digital Network
giving customers access to free media publications.
• Subway in New Zealand has launched a new app, making
its ‘Subcard’ loyalty card available on smart phones.
• Whitbread has introduced a virtual concierge service via
Twitter.
US Sonic hamburger chain is piloting
an online and mobile ordering
programme
• Self-order kiosks are increasingly deployed by QSR
operators such as McDonald’s, Subway, KFC, Burger King
and Arby’s.
Growing the success of Irish food & horticulture
Foodservice operator trends
Operators are seeking factors-beyond-food on
which to build competitive advantage
• In Aramark’s Burger Studio students can design
their own burgers using a choice of over 30
toppings, sauces and cheeses.
• Telepizza expands into Hotel channel through
implementing a new Telepizza Room Service that
allows customers to get products in their rooms
and the cost charged to hotel bill.
Aramark Burger Studio
• KFC has introduced free WIFI service in its
outlets in Ireland and Scotland.
• Holiday Inn is converting its bars into ‘social
hubs’, multifunctional areas with a game room,
business centre, restaurant etc.
Growing the success of Irish food & horticulture
Bakeries – from place of purchase
to place of consumption
Foodservice operator trends
Healthy Fast Casual is emerging as an
important market channel attracting
established and newly emergent players
• Health oriented chains such as Extreme Pita,
Energy Kitchen, Roti Mediterranean, Pita Pit,
UFood Grill are rapidly expanding, both in North
America and internationally.
Energy Kitchen
US UFood Grill
Canadian Pita Pit
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Canadian Extreme Pita
Foodservice operator trends
Healthy Fast Casual craze is extending to
beverages, treats and liquid foods, both in
mature and emerging markets.
• Smoothie operators and healthy dessert parlours
are expanding in N. America, BRIC countries and
Middle East.
Tropical Smoothie Cafe
• New market players include salad chains (Mixt
Greens, Chop’t (USA),Salad Story (Poland) and
holistic fresh healthy food concepts (Freshii (US),
BioWay Café (Poland).
• Russia is witnessing the emergence of soup fast
food chains, namely Only Spoons, Soup & Go,
Supnitsa, Supchik. Soup is seen as a healthy
alternative to traditional fast food offerings
(burgers, pizza, bakery).
Growing the success of Irish food & horticulture
Operator trend implications for Irish suppliers
Implications
As the upswing in foodservice demand is solidifying, suppliers should look to support
their customers in returning to growth. Start moving away from discounts and put
emphasis on added value attributes, in the markets with a stronger economic
performance in the first hand.
Evaluate international growth objectives of your customers and align your strategy to
pursue expansion through combined efforts.
Supplier environmental awareness and commitments are increasingly under scrutiny by
foodservice customers. In the short term it could bring benefits and commercial gain
but in the longer term it is a given.
Does your foodservice portfolio offer benefits beyond food? These are key ‘door
openers’ of today and could provide you with unique competitive advantages.
Evaluate the opportunities in Health Fast Casual and identify solutions that you can
deliver to capitalise on growth in a new market channel.
Growing the success of Irish food & horticulture
Foodservice supplier trends
Moving from supplying food as ‘ingredients’ to
providing solutions is a strategy pursued by players
with a strong commitment to foodservice. This
transformation yields short and long term rewards.
• Salomon FoodWorld has launched servEasy, an
eatertainment concept based on original Asian food
creations with unique appearance.
• Coca Cola has entered the hot beverage market with
CHAQWA vending solutions.
• Develey has introduced sauces with portioned
dispensing systems for QSR, Travel and Leisure
operators.
• A German wholesaler Frischdienst Union offers VitaKids
product portfolio with benefits such as nutritionally
balanced foods, optimal portioning, higher convenience
levels and child adjusted taste profile.
Growing the success of Irish food & horticulture
Foodservice supplier trends
Successful supplier solutions are operator and/or
channel driven as the examples below demonstrate
• Best Breakfast, a joint initiative of IDB Deutschland and
Kellogg’s Foodservice is a buffet breakfast solution for
hotel operators.
• Bel has developed La Vache qui rit Formule Plus cheese
range targeted at nursing homes.
• Nestle Professional has introduced full meal solutions for
elderly care institutions, specifically targeted at
consumers with chewing and swallowing difficulties.
• FrieslandCampina offers Valess meat-free, with
institutional channels as primary targets.
Growing the success of Irish food & horticulture
Foodservice supplier trends
Environmental performance, animal welfare and
sustainability are front of house for many suppliers
and have become mainstream.
• Unilever has launched its Sustainable Living Plan
designed to halve the environmental impact of its
products.
• One of 4 promises of UFS Knorr brand is ‘a better
planet!’. A new sustainable agricultural programme
‘Growing for the Future’ is launched with the aim to enrol
all Knorr vegetable and herb suppliers by 2012.
• Jacobs’ Professional growth in Europe foodservice is
driven by Rainforest Alliance certification of hot
beverages.
• Pfalzgraf, a premium dessert manufacturer uses only
free range eggs in its production. It received a Gold Egg
Award of Compassion in World Farming, an international
animal welfare organization.
Growing the success of Irish food & horticulture
Supplier trend implications for Irish companies
Implications
Food is increasingly seen as a commodity item by foodservice operators.
Providing value-creating solutions is a key success factor in foodservice. This
transformation will be essential for a long term success.
Focus on developing solutions based on technology, service, consumer benefits
etc. Think consumer, customer, channel.
Irish companies are particularly well positioned to capitalise on ‘green’,
‘environmental’ and ‘sustainable’ values. Put these to the forefront of your sales
and marketing and communication strategies.
Growing the success of Irish food & horticulture
Global Foodservice Trends Bulletin
- incorporating implications for Irish foodservice suppliers
Issue three – May 2011
Prepared for Bord Bia by
Growing the success of Irish food & horticulture
AIDAN COTTER
Growing
the success
CHIEF
EXECUTIVE
BORD BIA
of Irish28food
& horticulture
JANUARY
2009