to offer genuine innovation to rebound from the pandemic

Eating out, dining in: The European foodservice sector needs to offer genuine innovation to rebound from the pandemic

Over the last twelve months, the European foodservice sector has taken a massive hit and will continue to do so for the next couple of months, especially as a third wave of the virus in the region looks inevitable. Despite the pessimism, consumer confidence should return throughout the year as a vaccine program is implemented in the region. This creates the opportunity for the foodservice sector to try and show genuine innovation to try and entice consumers back on to the high street.

While some consumers admit that they cannot wait for life to return to normal, there are others who remain hesitant about visiting public places and mass gatherings, even after restrictions on movement are lifted. This poses a challenge to physical outlets within the foodservice channel, as consumers will seek reassurance about safety and hygiene practices that have been implemented. Two other challenges also need to be considered by the foodservice sector. Firstly, the growth of direct-to-consumer channels means that more people are happy to enjoy premium eating and drinking occasions at-home. Linked to this, premium offers from retailers also pose a threat as they enable consumers to enjoy foodservice quality products within the comfort of their own home. If physical foodservice outlets are to entice consumers back into the high street, they need to create genuine stand out appeal.

46% Proportion of consumers who say that when they eat at

53%

47% 56%

40%

Denmark France Germany Italy Netherlands

Consumers want brands that they feel match their attitudes and outlook on life, and the European foodservice sector must respond to this with genuine innovation. The best way to do this is through combining sensory appeal with environmental attributes, two issues that are of high importance to consumers across the region. Indeed, physical outlets should look to launch experimental products on menus (including limited time offerings), whilst also promoting green credentials. This goes beyond offering plant-based products on the menu and instead, highlighting sustainability initiatives along the whole of the supply chain.

Menu innovation is something that will be more beneficial to the foodservice sector in the long-term compared to aggressive discounting strategies. This is because innovation encourages consumers to tradeup, as opposed to launching strategies that encourage price sensitivity.

Proportion of consumers who say that when they eat at foodservice outlets, they want products that genuinely excite them (2020)

73%

34% 45%

36% 47% 50%

Poland Serbia Slovenia Spain Turkey UK

Source: Foodservice survey 2020 (11,000 respondents)