Food to go might be convenience-based, but consumers are more and more eager to experiment with new flavours, according to insight data from CGA.
Speaking during an insight session at MCA’s Food to Go conference on 9 March, CGA Director Karl Chessell emphasised that functionality is not the only thing brands should be focusing on. Consumers are increasingly looking for offerings off the beaten path.
“People want that adventure even if they’re working from home. They want a reason to make that walk to that local neighbourhood venue,” he said.
Chessell cited Filipino-inspired chain Jollibee as an example, citing the brand’s pan-Asian twist on QSR foods like burgers and rice bowls. He also pointed to desserts as a space that’s seen significant innovation in the food-to-go sector.
“Yes, it’s food to go, but yes, it’s indulgent, it’s premium, it’s desserts. So yes, it’s absolutely being done.”
Chessell also delved into other things consumers are increasingly looking for. 70% of customers keep sustainability in mind when choosing where and what to eat, while 42% think venues can do more to inform them about their efforts towards sustainability. They’re looking for more detailed information about everything from wastage policies to supply chains.
In addition, businesses have focused on work culture and staff wellbeing to improve recruitment and retention – and also because brand values are another important factor for consumers.
Chessell had this to say about the importance of ethics: “You need to get it right, you need to communicate it, and you fundamentally need to be authentic about it. Consumers aren’t daft.”
Furthermore, CGA insights show personal health to be another driver behind customer decisions. Three-fourths of people say it’s important to have healthier options. Consumers are increasingly looking to lead healthier lifestyles, while 47% of those who go to cafes and QSRs are looking for more nutritional information.
Chessell further emphasised the fragmentation of time and space as a major trend to keep an eye on. Redevelopment and regeneration in cities mean fragmentation of space into “different zones where people have different needs because they use those spaces for different things,” as Chessell explained.
With convenience remaining the key driver for food to go, it’s critical for brands to ensure they’re located where their customers spend their time and where they work. And they’re increasingly working from home, a post-pandemic trend that looks like it’s here to stay. This means consumers are spending more time in the neighbourhoods where they live, resulting in increased demand in residential areas.
Saturday is still the busiest day, with breakfast and mid-morning as the busiest timings. Nevertheless, demand on weekdays is growing, offering a broader repertoire of both days and day parts.
Operators can therefore maximise revenues in new landscapes in the post-lockdown environment. With over half of consumers ordering delivery either more than usual or for the first time, Chessell highlighted Rockfish as an example of a restaurant that cleverly adapted its offerings by introducing fresh fish delivery and also Leon for their introduction of drive-throughs.
He placed emphasis on the importance of tech-driven efforts like apps, subscription models, and personalised consumer experiences to propel both sales and loyalty.
This establishment of new revenue streams, alongside like-for-like sales growth and increased consumer confidence in visiting venues, has contributed to rising optimism in the sector as it recovers from the pandemic.
“We are seeing green shoots of recovery in hospitality,” Chessell said, revealing that nearly half of business leaders are planning to open new sites over the next 12 months due to an increase in investment into the sector. The opening of new sites means more new concepts and innovation, Chessell said.
“Food to go is relatively functional, but it actually doesn’t need to be. We’re starting to see that sense of experience, which is what hospitality is all about.”
