The year 2020 is just around the corner. Last week in Chicago, I pulled together a diverse group of industry professionals and moderated a roundtable discussing some of the key issues we will all encounter in 2020. Below is a summary of those issues.
- Alternative Channel Competition – We discussed the recent restaurant shakeout. We all agreed that there are too many seats and not enough posteriors in foodservice, plus suddenly, quality, convenient food is now readily available in competitive venues like C-Stores, Retail outlets (Vetri pizza restaurants in Urban Outfitters), movie theaters (AMC), etc. In addition, we are all concerned that unless Casual Dining reinvents itself, it will disappear as a segment.
- Situational Eating – Even though we discussed the eating habits of the different demographic groups (e.g., Millennials), we all agreed that eating occasions are being determined by time of day and location as evident with breakfast 24/7 and snacking. In addition, guests are becoming more knowledgeable about food (e.g., labeling/ingredients, sustainability, etc.) thanks to the Internet. Consequently, those manufacturers and operators who refine their story telling will come out on top.
- Big Data – The number one current day to day challenge and in 2020 is how best to utilize all the data, customer insights that are available.
What is your foodservice vision for 2020?
slow growth will continue – population continues to grow at a modest pace (.08%), the aging of the population has a negative impact of FS spending, and as noted above there is a change in habits/culture. Real growth will be very difficult in excess of population growth (less than 1%/year)
Great insight Bill. Thank you for sharing.
Similar comments apply to the UK too. But Brexit will change the dynamics including reducing population growth (and therefore foodservice demand) by 0.4% pa because of reduction in immigration.
Peter: Thanks for weighing in.