CA EN Succeed in 2024: Top Trends for hospitality-driven businesses

2024 SUCCEED IN 2024:

Top trends for hospitalitydriven businesses

Accelerating growth — even as spending slows Terms like “inflation,” “shrinkflation” and “economic recovery” are waning among thought leaders. But no matter what terminology experts use, business leaders are feeling the impacts of the modern economic landscape more than ever before:

They’re facing climbing costs across all food- and hospitality-related industries — with no signs of slowing

• Meats, textiles, sugar, soyoil and other key products and ingredients are poised to rise in 2024 as production fails to meet surging demand1

Labor is tighter than ever — with continuous calls for higher pay and fewer potential employees entering the hospitality field

• Since April, the unemployment rate has increased by 0.7 percentage points after holding

steady at a near record-low 5.0% from December 2022 to April 2023 in Canada, leading to competition to win and retain workers to remain high for the foreseeable future1 Consumers wallets are stretched thin, thanks to rising costs associated with daily living

• Since the pandemic, consumers are paying 25% more for groceries and electricity — and 24% more for housing2

Despite these factors, consumer spending has remained relatively steady.

However, financial indicators point to early signs of a slowdown in consumer spending: mounting credit card debt, and increasing auto loan defaults. In fact, consumer debt rose 4.8% year-over-year, nearly matching GDP growth — taking total household debt in Canada to a near-record $2,136.9 billion.3 Guessing exactly when consumer spending will slow isn’t productive. Instead, operators should take actions today to solidify business and get ahead of future changes.

In this guide, you’ll find four areas where Entegra experts see the most opportunity for hospitality-driven businesses in 2024. You’ll also learn about related trends you can capitalize on — and how, with the support of procurement partners at Entegra, you can succeed in the consumer economy of 2024 and beyond.

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Entegra Cost Outlook 2023/2024

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Bloomberg, “Inflation Is Making Americans Hate the US Economy,” October 2023.

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https://www.ceicdata.com

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The importance of high-performing food In past decades, consumers flocked to health food — meals and ingredients that could help them lose weight or power their exercise.

But today’s consumers expect more from food than just low calories and balanced nutrition. They want food that enables and elevates their state of being: high-performing food.

Where carb and calorie counting once dominated, consumers are turning increasingly to foods and ingredients like turmeric, maca, and kombucha — all of which are seeing greater demand1 — to feel good about what they are eating.

Where did this sudden demand for high-performing food come from? With the rise of social media, online education and an economic need to get more out of each dollar spent when eating out, buyers are paying more attention to how food, its ingredients and the molecules that compose those ingredients affect and interact with their bodies.

In short, consumers are increasingly well educated about what they eat, meaning business operators can no longer rely on “proven” menuing to pique interest — and certainly not to differentiate themselves. To engage and retain customers, successful hospitality businesses must be aware of, and ahead of, the demand of high-performing foods.

Industry Insights, August 14 2023. Technomic.

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MENU TRENDS

2024

Blue zone diets and longer lifespans Blue zones are world regions where locals enjoy significantly extended life expectancies, due in part to diets rich in nutrient-dense foods. As media focus on blue zones rises, so too does consumer interest and demand.

Famous blue zones include the Mediterranean and Japan, two regions where an emphasis on hearty vegetables, fish, legumes, nuts, seeds, and local herbs and spices have a correlation with longer, healthier lives.

Notably seafood and plant-based seafood alternatives are among the fastest growing proteins, seeing 25.6% growth for yellowfin, 21.1% for abalone, and a staggering 130% increase in demand for plant-based shellfish.1

Therapy through phytochemicals Going into 2024, demand for foods made with mushrooms, hemp and CBD (cannabidiol) is continuing to grow, primarily due to their phytochemicals, which can reduce anxiety and instill calm.

Phytochemical-rich ingredients are making their way into coffee alternatives, clean cocktails, desserts and snacks as consumers search for ingredients that soothe and elevate their mood.

Making drinks creative: alcohol optional Nonalcoholic beverages from 0% beer to clean cocktails and wines are on the rise among consumers, especially young diners. And while foodservice has shifted to recognize this trend — increasing nonalcoholic options by 6.1% since 20221 — enormous opportunity remains for operators who are ready to meet demand.

Nowhere is adaptation more evident than in lodging, where Technomic recently tracked large-scale nonalcoholic initiatives. “Hyatt launched a Zero Proof, Zero Judgement beverage program to provide sophisticated spirit-free beverages at hotels across its brands.

The alcohol-free offerings are in response to travelers’ increased focus on well-being and alcohol-free offerings,” noted its 2023 Lodging Insights report.

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HIGH PERFORMANCE FOOD

Trends to follow in

Industry Insights, August 14 2023. Technomic.

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01 HIGH PERFORMANCE FOOD

Capitalize on this trend Educate yourself and your staff on emerging healthy ingredients — not just what they are, but also what properties guests may be expecting from their consumption

Rapidly adopt nonalcoholic offerings from alcohol-free beer and wine to spirits and clean cocktails, and ensure service staff are prepared to answer questions about these offerings

Support from Entegra Entegra’s Local & Direct programs offer savings on unique, niche ingredients. Coupled with access to Entegra’s Performance Kitchen, our experts will help you save on delicious, highperforming food — all while showing you how to work them into your menu.

Incorporate trending floral flavors like lavender and rose1 into nonalcoholic offerings to add timeless appeal to your mocktails

Incorporate anti-inflammatory ingredients, like tomatoes, salmon, green vegetables, turmeric and ginger, and clearly communicate their inclusion to your guests

Industry Insights, August 14 2023. Technomic.

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Better experiences at lower costs with smart SKU rationalization Since 2020, menus sizes have been on the decline nationwide. A Toast restaurant survey found that 26% of operators had reduced the number of items offered on their menus — with an unsurprising 29% reducing overall inventory.1 As foodservice operators combat industry challenges — many of which are listed in this guide’s introduction — purchasers are consistently carrying fewer SKUs to achieve long-term profitability.

What are some of the benefits of SKU rationalization?

Fewer SKUs means less total inventory on hand, reducing overall storage and food waste costs Back-of-house prep is greatly simplified, streamlining training for more efficient onboarding and upskilling With fewer ingredients, foodservice staff can focus on increasing overall quality on the business’ core offerings

“ As prices are going up, [foodservice operators] are taking a look at their menus. They’re really reducing the number of items they have, reducing their SKUs in order to streamline their efficiencies.”

–Lynn Hay, Director of Culinary Operations, Entegra 1

Voice of the Restaurant Industry Survey, November 2023. Toast.

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Measure, report and analyze your resource usage – especially among top-selling products. Operators who can identify opportunities to repurpose popular items into other offerings can easily reduce overhead, waste and total spend.

For example: Use the same protein in both an entrée and a sandwich or appetizer, or use different cuts of the same protein

Don’t think “narrow;” think “niche.” By limiting SKUs, you can focus your offerings, positioning and marketing your business around an identity of expertise and quality, not quantity.

SKU RATIONALIZATION

Capitalize on this trend

Support from Entegra While you can always leverage Entegra’s culinary experts and the Entegra Performance Kitchen for menuing ideas, don’t overlook the capabilities of the Entegra's Data & Digital tools and reports to power SKU rationalization.

Entegra can highlight opportunities to streamline inventory, then identify menu swaps for the cross-utilization of ingredients.

We can also show you savings your business can enjoy with alternative or simplified menuing. This means greater efficiency, better business performance, and an intuitive guest experience.

Remember: Even with simplified SKUs, employees need robust training to take advantage of a leaner approach. Aim to make your staff knowledgeable, efficient problem-solvers.

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Going back to basics with a focus on front of house While consumers have largely adjusted to higher prices and continue to pay them, their expectations have also risen. Along with improving menus and back-ofhouse (BOH) operations, getting “back to basics” with strong front-of-house (FOH) operations will help drive businesses forward in a tighter market — ultimately earning more consumer dollars.

Consumers have recently demonstrated they’re willing to reward themselves with food- and travel-driven experiences… but only for hospitality businesses that are delivering quality beyond just food.

Technomic found that operators who evolved quickly to meet these expectations had their efforts pay off, “as foodservice has returned to enjoying a greater share of the consumer’s food dollar (versus retail) in 2023.”

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OPERATIONS TRENDS

FOCUS ON FOH

Trends to follow in

2024

First impressions matter most Consumer expectation of high-end experiences begin well before eating, plating or even ordering. High quality furniture, art and design at the front door and reception area of establishments immediately set the tone and make a promise to guests.

While restaurant and hotel operators have always known about the import of ambiance and scene-setting, we’re increasingly seeing these expectations expand into more brackets of hospitality-driven business, including senior living facilities and previously value-centered establishments.

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Your business, on camera and on stream As social media influencers continue to rise and grow in reach and sophistication, highquality video content about your business that reaches millions of viewers isn’t just likely — it’s expected.

Obviously, you don’t want to get caught on camera with unclean facilities or poorly plated food. But you can also see this as an opportunity to create Instagram-able areas of your premises, or find ways to embed local art and culture into décor — a trend Starbucks has spearheaded with a mix of corporate and local interior design.

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03 FOCUS ON FOH

Capitalize on this trend A crowd-winning FOH experience doesn’t happen with purchases alone. Employee training is critical to success, which is partially why 49% of restaurant operators reported employee training as the most important investment in the upcoming year.1 Double down on training programs for FOH employees to combat several key labor challenges:

Demonstrate and invest in a career path for your employees

Support from Entegra Uplevel your FOH at the best prices with our Local & Direct savings programs. We connect you to — and advise you on — furniture, interior design and development solutions. Paired with Entegra’s staff training solutions, we can help you create a memorable, welcoming FOH atmosphere.

Shift guest perception responsibility and emphasis to the employee, better rationalizing the higher wages they require today

Create clearer expectations of each role at your business, allowing you to recruit for more differentiated skillsets

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Voice of the Restaurant Industry Survey, November 2023. Toast.

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Technology and food innovations driving efficiency While labor remains the largest challenge in hospitality-driven business, emerging innovations in food and technology are serving as force multipliers to create new efficiencies for operators.

Forward-thinking operators are embracing numerous technologies to get ahead of labor and pricing issues, with nearly half implementing new mobile and tablet technology into 2024, and 32% looking into how emerging voice-based AI solutions can help tackle customer service deficits.1 In back-of-house spaces, the right technology can now reduce training timelines, empower staff to create high quality food without high-end culinary staff, and allow hospitality operations to seamlessly prepare food around the clock.

“Smart” tech isn’t the only factor pushing hospitalitydriven businesses forward. New food solutions and ingredients that reduce prep without sacrificing flavor, are helping foodservice staff do more for less.

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MENU & OPERATIONS TRENDS

2024

The rise of sous-vide Sous-vide cooking isn’t only trendy and upscale; it also requires less skill and training, while producing high-quality entrees and proteins quickly

Automated cooking Kitchens employing smartphone- and appenabled appliances and processes can now get food cooked during off-hours, and from off-site.

This means less strenuous labor requirements without sacrificing productivity or availability.

Smaller footprints, larger gains The “bigger is better” mentality of the 90s/00s is out of date. Consumers no longer need an expansive banquet hall to feel like they’ll be well served, and smaller, incredibly efficient cooking technology is allowing more BOH operations fit in smaller spaces

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TECH AND FOOD INNOVATIONS

Trends to follow in

Robotics continue to rise While still early in adoption, robotics applications in both FOH and BOH operations continue to see testing and advancement. Carle Foundation Hospital recently introduced “Sally,” a salad-making robot that can product custom salads, ordered from a kiosk, in one to two minutes.

While early adoption can be difficult to navigate, operators should follow industry news and ensure they don’t lag behind the 22% of restaurateurs who are exploring robotics — a figure that is only poised to rise.1

Food innovation for simpler service It isn’t just tech products pushing boundaries.

Food solutions like multi-use syrups (for use in coffee, desserts, sides and other menu items), and SKU rationalization in general, mean training on a single product can cover a large number of menu items, lessening your overall training load.

Similarly, doughs and prepared starches like potatoes have seen major strides in innovation — increasing in quality, as well as ease of preparation. Boasting greater product diversity that now includes pizza doughs with a bakedin “made from scratch” look and texture, these “easy” starches can cut labor time without sacrificing taste.

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04 TECH AND FOOD INNOVATIONS

Capitalize on this trend Support from Entegra Identify equipment and ingredients that require the largest learning curve and search for alternatives

Our equipment manufacturer and distributor relationships mean it’s easy to locate affordable equipment, robotics and food ingredient solutions. With custom contracting, you can also leverage Entegra’s buying power and procurement expertise to secure lower prices on the equipment you are already considering purchasing.

Explore different models for prep and cook time in kitchens.

Incorporating robots and other recent automated technology may allow covering longer kitchen hours with less staff

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Source: Voice of the Restaurant Industry Survey, November 2023. Toast.

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How Entegra supports hospitality-driven operators through partnership Industry trends rise and fall quickly. But the advisory partnership you get from Entegra is ready to help you navigate it all.

Entegra clients can tap into the expertise of the Entegra Performance Kitchen for services like product cuttings, focus groups and menu ideation.

With product cuttings, we can help identify areas you can save with contracted options. This way, you can enjoy equal or greater quality than your current, non-contracted product.

Our culinary professionals can also provide advisory services to enhance your menu and identify exciting areas of opportunity.

Save up to 30%* off the ingredients and supplies you currently buy with the unmatched purchasing power of Entegra.

The Entegra team identifies savings opportunities to help ensure you are getting the best prices, despite a fluctuating marketplace.

Entegra’s environmental expertise, through our relationship with Sodexo, can help reduce your Scope 3 emissions. What’s more, we can connect your company to suppliers committed to reducing their carbon footprints.

Discover the Entegra Performance Kitchen Entegra clients get exclusive access to the Entegra Performance Kitchen (EPK), the home of culinary services spearheaded by experts like Chef John Csukor, 35-year industry veteran and Entegra’s Head of Culinary services.

At the EPK, culinarians work with your team to ideate new menus and optimize exisitng offerings.

We’ll guide you through new foods and equipment. And we’ll talk about your strategic goals... and how new offerings can engage today’s guests — while continuing to attract tomorrow’s.

Get more insight into important upcoming trends.

Partner with Entegra today.

Speak to Entegra’s experts or visit our website to learn how we can keep your business on-trend across operations and foodservice.

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