Technology will be one of the restaurant
industry’s biggest assets over the next 10 years, even as that same technology helps to feed rising competition from non-food companies and delivery-only “virtual restaurants.”
These are among the more important findings of the National Restaurant Association’s Restaurant Industry 2030 report, which contains feedback and predictions from more than 100 industry
experts.
“The off-premises market — carryout, delivery, drive-thru and mobile units — is where the majority of industry growth is going to come from over the next 10
years,” the report notes in an introduction that declares “restaurants have become a now industry.”
In fact, the very definition of “restaurant” is a work in
progress.
“The digital world and evolving consumer preferences are resulting in an array of restaurant models aimed at giving customers what they want, when and where they want it. Some
restaurants will morph into a hybrid model, offering counter service, full service, takeout and delivery, and meal kits.”
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The report describes “cloud kitchens” and
“virtual restaurants” as entities that exist only online or via an app. They are typified by a proliferation of centralized kitchens that exist solely to support “the ongoing growth
of app-based meal delivery services.”
While third-party delivery services have enabled restaurants small and large alike to cash in on changing consumer preferences, they pose a tangible
threat to individual-restaurant loyalty. “Third-party delivery apps are emerging as a key gatekeeper between consumers and restaurants, able to capture consumers’ business with convenient,
frictionless ordering.”
Choosing whether to sign on with one or more third-party deliverers or handle home delivery in-house is a decision every major restaurant chain seemingly has to
make.
A case in point is Shake Shack, which spent much of its recent third-quarter earnings call with investors explaining why it’s ditching DoorDash, Postmates and Caviar for a national
partnership with Grubhub — a nascent decision that could crimp delivery revenue not only in the fourth quarter but into 2020 as well.
Concurrent with the sales impact, Shake Shack must
ramp up spending to market its Grubhub relationship region by region. “We have two years of people who have built up habits, whether it’s on Postmates or Doordash or Caviar,” Shake
Shack CEO Randy Garutti said on the earnings call. “And we’re going to have to move those people over.”
One of the more intriguing findings of Restaurant Industry 2030 is the
potential for non-food companies to add food and prepared meals to their offerings as an added service.
“For example, a media-streaming service could buy or pair with existing meal
delivery services to create an all-in-one dinner and entertainment experience. Or an online retailer could leverage one-click ordering, logistics and delivery expertise to add meals to their
subscriptions,” the report notes.
Adding to the complexity of future restaurant operations is the issue of sustainability — which shows no sign of diminishing on the list of
consumer interests — and bespoke menu offerings suited to an aging U.S. population and advanced genetic knowledge.
“The rising incidence of lifestyle diseases such as heart
disease, obesity and Type 2 diabetes will create growing demand for meals that provide specific health benefits to diners on an increasingly personalized level,” the report states.
“In some cases, these meals may be prescribed by doctors or as part of coverage by insurance companies. For restaurants, costs for providing these meals could be offset by relationships with
health care and insurance providers, which would direct patients to eateries with the proper medical meal and portion for their condition.”
Restaurant Industry 2030 was conducted in
partnership with American Express and Nestle Professional.