Survival of the Savvy: What to Expect for The Future of Restaurants

As a post-COVID 2023 quickly comes to an end, it's clear that the restaurant industry, as we once knew it, is unlikely to return. Those bustling neighborhood bars, beloved local eateries and fine dining establishments may be a thing of the past. While these were businesses built with dedication, hard work, and often, life savings, every industry must evolve, and the restaurant and hospitality sector is no exception.

Since the pandemic, restaurants have undergone significant transformations in how they serve customers. From reducing hours and downsizing staff to relying heavily on takeout and delivery services, the entire dining model has shifted.

Yet, times of upheaval also bring opportunities for positive change. The restaurant industry, particularly at the local level, was overdue for a makeover. While some big chain restaurants may continue to struggle or reconfigure their business models, it's the small, family-owned, and local specialty cuisine establishments that have felt the greatest impact.

In the face of these challenges, it's not time to panic but to pivot, as any savvy entrepreneur would. However, many restaurateurs may not know where to start, and with mounting bills, staff shortages, rising food costs, and dwindling sales, changes need to happen swiftly.

Successful restaurants must pay attention to macro trends and gather feedback from their local patrons who enjoy dining out. The pandemic has shifted how, when, where, and what people want to eat. To survive and thrive, restaurateurs need to adapt quickly.

Here's what's fading away:

1. Extensive Menus: The era of overwhelming menus with 150 items is ending. Rising shipping costs and food expenses are prompting restaurants to streamline their offerings. To keep food costs low, some items will have to go.
2. Max Customization: While customers have enjoyed creating their own dishes with numerous choices, this trend may wane. Too many ingredients require more preparation and can lead to higher waste. Expect menus to consolidate.
3. Large Shared Plates: Buffets and communal-style dining will decline. The pandemic has made people more conscious of hygiene and sharing food can spread germs. Individual plated meals will gain popularity.

Say hello to:

1. Plated Meals: Home cooking surged during the pandemic, and people now seek restaurant-quality meals for takeout or dine-in.
2. Branded Niche Restaurants: Smaller, specialized eateries with limited menus but multiple variations will become popular. Think a restaurant that serves various mac and cheese dishes like Mac Mart in Philadelphia.
3. Increased Delivery: Food delivery will continue to grow, with more convenient, faster, and cost-effective options emerging. The comfort of dining at home may surpass the appeal of eating out.
4. Local Fresh Menu Options: Consumers are increasingly interested in the source of their food. Supporting local farms and embracing the farm-to-table movement will become stronger trends.

In this changed landscape, listening to customers remains the key to success. Let them guide your choices, create the best dining experience for them, and adapt to their evolving preferences. The restaurant industry, while transformed, can find new opportunities by staying attuned to customer needs.