2020 | The Shifting Foodservice Industry

Welcome to 2020 or the year of the "clear vision". I need to share some insights into what I believe will be a year of super change in the Foodservice industry.

Over the past 14 years, we talked to thousands of customers across Canada about actions they could take to drive their business forwards. This is the year that restaurateurs need to make shifts to survive this craziness. Not to freak you out but the shift is clearly here, the changes are all over. From menu items to how we operate our businesses, it’s all changing in front of our eyes. The consumer has changed too, they're in more demand of “New Things” and is driving these shifts fast and furious.

So, I'm going to give you 3 things to review, try or even put into a strategy format for this year. You can look at these and continue to do what you want. I hope all the best if you can sustain your business model. If we look back to the 80's when most restaurants started their concepts we see today, it was a different world then as now. It’s time to shift!!! or be left in the dust and that isn't fun at all. Who likes being second?

Okay, like any other Restaurant Consultant, they usually give you things to do. I said three things earlier, so here's some things to consider or shift towards in 2020.

You NEED a full-blown strategy, I can't stress this enough. If you don't know what you are going to do this year and are living in the motion of day to day business you may be into trouble. The bigger businesses in our industry have strategy plans for many years ahead. You need to know what you are going to do in this spring, summer, fall and winter. I know it’s hard to plan so far in advance and some may say that planning too ahead isn't right either. Well, after consulting over 6000 restaurants in my career, the businesses that are making money and are still here today have strategy plans and ones with extreme details. You need the details to make your plans work, know what you are going to do with menu items, marketing ideas and promos. The "Why" should be connected to each of your strategies in what you do. Most will be around making more money, but you may have strategies on customer experiences or even driving new initiatives. Now, I've also run into businesses that don't have the details planned out with dates and execution tactics. Make it detailed, know who, when and why you want to do it. Look at forecasts in your markets, what will these menu changes do to your business. Have you planned to shift your menu to more healthier options or functional foods? BTW, this is maybe where the essence is in the industry of the future.

Okay, second thing is knowing what is happening in our industry tomorrow. Your late to this shift, if you’re not planning your strategy around 3rd party delivery or looking into how to open a second location as a Ghost or Cloud Kitchen. This is a huge shift in our industry and one that is here to stay. Tons of huge companies are moving this way and investing tons of capital into this change. Think of this shift as the "Drive Threw" of the 80's. How many QSR's have survived over the past 40 years that had a business model without a drive threw. Not many, and the ones that did build it into their business plans had an 80% increase in sales over ones that didn't. This is the same when it comes to this shifting 3rd party delivery. All I can say around this movement is that you need to know your numbers on how to make money with it. I've read so many articles saying you can't and that its hurting restaurants. This will be another opportunity for you to investigate your numbers and know what you need to do. You can, if you do it right!!! You can be impacted negatively if you don't. You don't open a restaurant to close it. Get on board with this, it’s what the consumers of today and the future want. Plug: Get Sysco Canada’s Business Resources department to help you with this, we've done the math and know what you need to do.

Lastly, I'm going to combine two things here together. Marketing and Risks! Take more risks in 2020 with your business. Then market those risks to death. In the past year we seen simple menu items restructure our industry with simple marketing initiatives. We saw plant-based food come into our industry with some amazing marketing strategies that has now reshaped our diets and menus. Pretty amazing and fast .... I find it interesting that marketing is driving our industry almost more than the beautiful food that is being created in it. Now, please explore this, too many people come up with amazing menus or items but don't know how to get it out to the masses. I've seen this so many times when we visit a location and find a gem on the menu that the world doesn't know about. You have “social” to get the word out. I also recommend that you get help with “social” it’s hard to do this on your own. Take a risk and get a social media strategist or a company that can make your brand pop. This seems late to the shift, but we still see tons of businesses in need of help here. Take risks on your menu too. You’ve probably shortened up your menu items over these past few years. Make it simpler so you can change things up with little costs. I've always said a big menu, means a big freezer. Freezers don't help sell food. Take risks with your staff and get them to help you with ideas and how to make your location the place to be at. We know from many studies, if you make your establishment a team environment business model, your likely to survive way longer then the locations that stick with the 80's model. The owner vs. staff doesn't work anymore. Build a place that your staff wants to hang out at. We've seen this in large businesses, especially in the tech world. #beanbagsandfoosballtables. If your staff loves where they work, they’ll be your best marketers.

All the best in 2020, I hope this gets your thoughts rolling. Please reach out to our amazing Business Resource departments across Canada. We're located in each major city and love helping our customers each day with strategies or concepts that maybe risky. We are Canada's largest and most successful Foodservice Consulting team. We’re not here to teach or tell, we are here to learn and help your business strive forward. Let’s shift this year together and grab this craziness as one! #BestIndsutryToBeIN!!!!!

?