FCSI UK & Ireland’s first insight report – A Taste of the Future – takes a unique look into the future of foodservice, outlining the significant future issues and growth opportunities to which attention needs to be paid.
Sixty-four consultants were surveyed on key sector trends by Allegra Strategies, who then conducted in-depth online interviews to investigate the trends in more detail, which the report reveals to be: sustainability, economic challenges and healthier eating.
Chairman of FCSI UK & Ireland, David Bentley, says: “The foodservice sector has been squeezed on a number of fronts: persistently tough trading conditions; the VAT increase; a culture of discounting; a growing appetite for casual dining and an intensifying government focus on healthy eating in the face of rising obesity levels.
“If the last three years have been turbulent, the next three promise to be equally testing. But as Benjamin Disraeli said: “the secret of success in life is for a man to be ready for his opportunity when it comes.” For the foodservice sector, being ready will mean not just meeting current challenges, but preparing for future trends and prioritising the areas that will deliver growth. Our report sets out to outline the future issues and growth opportunities that the industry should be aware of.”
Sustainability
Sustainability is a growing and high profile priority which is forecast to have the biggest impact upon the foodservice sector. Customer demands require that every organization ‘does its bit’, whilst increasing legislation is designed to ensure progress (for example, reporting emissions data in company annual reports).
But are caterers taking sustainability seriously, or settling for ‘greenwash’? Only 43% of consultants believe that it is being taken seriously, with cost perceived as the main barrier: the cost of equipment, waste disposal, staff time, researching options, red tape and administration… all these and more discourage companies from tackling the complexities of the real issues.
Local sourcing is regarded as an important trend by 54%, with 86% believing that it will have a serious impact on procurement in future years. Whilst independents and contract caterers are excelling here, branded restaurants and pub groups will need to take action, as will the supply chain if local sourcing is to become a reality.
Food security – defined as consumers having access at all times to sufficient, safe and nutritious food for an active and healthy life at affordable prices – is also seen as a growing and major concern, as illustrated by current grain shortages and price increases.
For 84%, water usage is the greatest threat of all: it is essential to reduce the ‘water footprint’ of menus. Just take a look at the water needed to produce everyday food and drink:
1 potato(100gm) takes 25 litres
1 glass beer (250ml) 75 litres
1 cup coffee (125ml) 140 litres
1 glass milk (200ml) 200 litres
1 hamburger (150gm) 2400 litres
1 kg meat 15000 litres
The problem is obvious, the answers must be found.
Energy reduction, waste management, and recycling are all addressed in the report.
Rising costs
Ongoing economic stagnation and the Eurozone crisis mean that mean that 52% regard rising costs and austerity measures as a key trend. The resulting squeeze on personal budgets, increasing cost awareness, and rising cost of living result in a market driven by value: 44% regard value for money as a key factor, whilst 55% see food quality as the most important factor in delivering superior customer experience.
Also important are restaurant design, employee talent and training, as well as fast and efficient service.
Healthier eating
25% of UK adults are currently ‘obese’, a figure that could increase to 50% by 2050! Clearly, the hospitality industry has a key role to play in tackling the poor diet – poor performance – poor health consumer spiral.
76% agree that consumers are already introducing more meat-free options into their diets; 65% see increasing consumption of white meat over red meat; with 31% seeing growth in vegetarian diets.
The industry needs to support the adoption of healthier diets with improved choice, range and portion size, removing unnecessary extras to help reduce consumption.
Conclusions
This report raises many interesting and challenging issues for the hospitality industry as a whole: many of those issues are already under consideration and in the process of being addressed, but it’s clear that that process will be forced to accelerate despite the many complexities to be tackled.
Increasing government and consumer pressure will require the sector to improve its sustainability credentials and share responsibility for the health of both the environment and the population. Lipservice will not suffice: energy management and monitoring, the development of waste efficiency and disposal, expanded use of recycling technology, development with suppliers of local sourcing – these all need to be prioritized.
To build on the opportunities for growth that exist and will develop, cost cutting must not be allowed to damage the quality of product or service on offer. Instead, investment in people, expansion to meet growing tourism, and building customer loyalty will all contribute to grasping the opportunities.