The numbers reflect the sentiment. The rankings (see chart at end) show 44 of 46 participants posted an increase in sales revenue, up from 38 of 44 dealers, a somewhat different mix, in the 2022 report. Cumulatively, participating dealers report sales were $12.24 billion in 2022, up 26.3% from 2021.

Dealers say they found success by making operational improvements, investing in inventory, working tirelessly to source product, and, in one case, leaning on a buying group to provide training to employees. What does the road ahead look like? Dealers say ongoing challenges include cyberattacks and other scams, labor shortages and even just moving from a reactive to a proactive state of mind. But they have solutions in mind.

YEAR IN REVIEW
Both Clark Associates and Wasserstrom, ranking No. 1 and No. 5, respectively, in the report, have focused on improving the internal workings of the dealerships.

“We did a lot of good work under the hood,” says Gene Clark, CEO of Clark Associates, now a $3 billion company. “With it being so crazy the last couple of years, it’s important to have time to just focus on everyday basic operational excellence. We made a lot of advances in catalog management and inventory management, warehouse optimization. It sets us up well for this year and the future.”

To combat supply chain chaos, for example, Clark says the dealership improved its inventory management by building technology and using its data wisely to ensure the right product was in the correct part of the country. The result: a higher level of customer service.

“Now the pendulum has swung the other direction where, depending on the product, some manufacturers have an excess amount of stuff.” —Tricia Powers Dambrauskas, B&G Restaurant Supply

Other highlights at the dealership include two new distribution centers for its WebstaurantStore division. One center recently opened in Georgia and the other center will open in Tennessee. The Tennessee facility will reportedly showcase its largest investment in automation and infrastructure. A press release points to its use of a fit-to-size packaging technology that will size, construct and label each custom order. It eliminates the need for void fill materials.

Building a stronger base at Wasserstrom started in the early days of the pandemic. Brad Wasserstrom, president, says the dealership used the slower months to focus on adding automation to certain areas of its business. It also found ways to make partnerships with customers, primarily chain restaurants, more mutually beneficial.

“We have flourished coming out of COVID,” Wasserstrom says. He points to how the dealership, which follows a fiscal year October to September, saw COVID still wreaking havoc in the winter of 2021 but things started to pick up later in the year as the world reopened—for real this time.

In 2022, the dealership fully embraced a form of automation in one of its warehouses that it had been working on for several years. The technology speeds up picking products and creates fewer errors when compared with a human. Another bright spot included celebrating the dealership’s 120th anniversary.

TAKING STOCK
Challenges around sourcing products came up in conversations with multiple dealers. Having inventory, and staff bent on finding products, set both B&G Restaurant Supply and Associated Food Equipment & Supplies (AFESCO) up for a positive year.

It was in 2021 that B&G, ranking No. 25, made the decision to invest in more inventory, says Tricia Powers Dambrauskas, executive vice president. “We saw [the supply chain] constricting so we made business moves to bring in inventory while we could and put in some large stock orders.”

“Now the pendulum has swung the other direction where, depending on the product, some manufacturers have an excess amount of stuff,” Dambrauskas adds. “There’s some opportunity to work with manufacturers to take some of those stock levels out of their hands.”

She adds that griddles, combi ovens and large ice machines still have longer than usual lead times but walk-ins and even fryers seem to be back to a normal schedule. Demand from schools for serving lines has skyrocketed as they’re serving out of cafeterias again. During COVID, B&G sold a record number of holding cabinets and transport carts to schools.

Otto Abad, president/owner of AFESCO, says his employees put in a lot of time and effort to source products and that’s one reason the dealership, ranking 35th, saw a more than 58% jump in sales growth, the largest increase percentagewise of any participant in the 2023 report.

“I can’t thank my purchasing department and my sales team enough for all their hard work and dedication they put into trying to take care of their customers,” Abad says. “We had to go from manufacturer to manufacturer until we found somebody that could fit the bill. It might not have been exactly what the customer wanted from us, but we found something to get them through, to help them produce menu items.”

Abad took full ownership of AFESCO in late 2018, after being a minority partner for a couple of years. In 2022, he saw a lot of “pieces of a puzzle” come together. Those pieces included leaning on the dealership’s buying group to train employees and to form relationships with vendors, investing in inventory, and creating a three-person design department.

“With it being so crazy the last couple of years, it’s important to have time to just focus on everyday basic operational excellence.” —Gene Clark, Clark Associates
Additionally, AFESCO plans to relocate its Alexandria, La., location after purchasing a nearby warehouse that’s more than three times the size. Opening this August, the warehouse will have a more than 5,500-square-foot showroom with a test kitchen and full bar so operators can explore equipment hands-on.

ROAD AHEAD
Dambrauskas says security marks one challenge she sees on the horizon. Like virtually any business, B&G receives spam emails and text message scams, and now with certain forms of artificial intelligence taking hold, she wonders what’s next.

“Training is everything, continuously communicating to the staff what to watch out for and what to question,” Dambrauskas says. Creating a culture where employees don’t hesitate to speak up if they click on the wrong attachment, keeping systems updated and using two-factor authentication serve as a few solutions.

At Wasserstrom, recruiting and retaining employees continues to remain a top challenge— however, the churn did slow a bit in the second half of 2022. The dealership employs 1,300.

“We try to do a lot of unique things for our people; we try to treat them like family. I think that helped reduce our turnover,” Wasserstrom says. For its anniversary, the dealership gave employees gifts with the theme 120. Gift cards for $120 to its swag store or for gas or groceries are a few examples.

And for Clark Associates, shifting to a more proactive mindset now that things are improving could be an issue—or an opportunity. “So many businesses have been operating in a reactive state for over three years now arguably,” says Clark, pointing to pandemic-related stresses around the supply chain, labor and inflation. “The challenge is, do we remember how to think thoughtfully and proactively?”

WHAT’S A DEALER?

For the FER Top Dealers Report ranking above, we use the following criteria: To be ranked, the dealer must independently verify its volume. This is usually done with a letter or signature from a certified public accountant. If more than 50% of a distributor’s sales are from paper, chemicals and other nondurables, we do not include them. This excludes nearly all broadline distributors and paper distributors that have significant equipment and supplies volume.

Source FERmag.com

Working through funds they manage, Ares Management, Oaktree Capital Management, and Bayside Capital will invest in TriMark. The deal is expected to close in early January and it has the support of a group of TriMark’s existing lenders. Other terms of the transaction were not disclosed.

“By deleveraging the company’s balance sheet and receiving this new capital, we better position TriMark to continue executing on our growth strategy, providing excellent service to our customers, and building on our track record of industry leadership for the benefit of all our stakeholders,” said Thomas Wienclaw, TriMark’s chief executive officer.

TriMark reported annual revenues of more than $2.2 billion in 2022, making it the country’s second-largest foodservice equipment and supplies dealer, per FE&S 2023 Distribution Giants Study.

Source FESmag.com

McCoy has over 15 years of experience in the foodservice industry, most recently as the culinary innovation chef at Nestle Professional in Solon, Ohio. He is a certified research chef, too.

Source FESmag.com

Key Insight of the Global Commercial Cooking Equipment Market

North America will dominate the market during the forecast period.

Given their high disposable income and high proportion of working professionals, the market will largely expand due to the fast-food industry’s rapid growth and the population’s growing appetite for takeaway, meals and home delivery of food. Furthermore, the abundance of eateries, cafés, and fast-food chains will benefit the sector’s expansion. The presence of significant commercial cooking equipment producers will also aid the market’s expansion.

In 2022, the ovens segment dominated the market with the largest market share of 27% and market revenue of 3.24 billion.

The product type segment is divided into broilers, fryers, steamers, cook-chill systems, ovens, cookers, kettles, ovens and others. In 2022, the ovens segment dominated the market with the largest market share of 27% and market revenue of 3.24 billion.

In 2022, the quick restaurant services segment dominated the market with the largest market share of 44% and market revenue of 5.28 billion.

The end-user segment is divided into full restaurant services, quick restaurant services, catering and others. In 2022, the quick restaurant services segment dominated the market with the largest market share of 44% and market revenue of 5.28 billion.

Advancement in market

Marcone is another player entering the commercial food service equipment parts market. The distributor of parts and equipment for home appliances, HVAC, and plumbing repairs in North America has expanded its product line to include parts for commercial kitchen equipment. Marco has decided to move into the distribution of commercial kitchen parts at a very interesting time since the food service sector still faces many difficulties, including supply chain problems, inflation, labour shortages, etc. A few well-known companies in the commercial kitchen parts distribution space, like Parts Town, further exacerbate this difficult situation.

Market Dynamics

Driver: Growth of the hospitality sector.

With support from the government, customer demand, and other investment opportunities, the sector is growing after suffering catastrophic losses for two years during the COVID-19 pandemic. The hospitality industry is also expanding with the growing number of fast-food chains and outlets and the growing need for quick, convenient, high-quality food services due to rising disposable income and a younger population. Consequently, expanding the hospitality sector will propel the growth of the worldwide market for commercial cooking equipment.

Restraints: The high price of industrial cooking equipment.

The high price of industrial cooking equipment will prevent the market from growing because small cafés and restaurants cannot afford it, especially considering the complex design and extensive working requirements. The unrealized potential of small and medium-sized enterprises will constrain the market’s expansion, considering the exorbitant cost of commercial culinary apparatus.

Opportunities: IoT in commercial cooking equipment.

The hospitality and culinary industries are consumer-driven markets, which is seen in integrating IoT with commercial cooking equipment. The services that market participants provide determine what customers want to buy. Customers are more happy when high-quality products are delivered quickly. As a result, industry participants invest in the newest technology to maintain their customer base, provide them with a competitive edge, and raise customer happiness. An excellent illustration of how the sector will lead its growth during the projection period is the adoption of the Internet of Things to increase functioning, energy savings, and safety, among other things.

Challenges: The high maintenance of commercial kitchen equipment.

Commercial establishments are held to high standards of cleanliness, hygiene and safety and must ensure that they are met. Therefore, the cooking equipment must be cleaned, refurbished, checked and inspected regularly to ensure optimum performance. Therefore, the high maintenance of commercial kitchen equipment may challenge the market’s growth, adding to working capital costs for businesses.

Some of the major players operating in the global commercial cooking equipment market are:

• Ali Group
• Alto-Shaam, Inc.
• Atosa USA, Inc.
• Comstock-Castle Stove Co., Inc.
• Dover Corporation
• Duke Manufacturing Co. Inc.
• Electrolux
• Fujimak Corporation
• Illinois Tool Works Inc.
• Middleby Corporation

Key Segments covered in the market:

By Product Type

• Broilers
• Fryers
• Steamers
• Cook-Chill Systems
• Ovens
• Cookers
• Kettles
• Ovens
• Others

By End User

• Full Restaurant Services
• Quick Restaurant Services
• Catering
• Others

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the UK, Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

About the report:

The market is analyzed based on value (USD Billion). All the segments have been analyzed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyses driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter’s five forces model, attractiveness analysis, Product analysis, supply and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company that provides actionable insights through data analytics to companies to improve their business acumen. They have a robust forecasting and estimation model to meet the client’s objectives of high-quality output within a short period. They provide both customized (client-specific) and syndicate reports. Their repository of syndicate reports is diverse across all the categories and sub-categories across domains. Their customized solutions meet the client’s requirements whether they are looking to expand or planning to launch a new product in the global market.

Source finance.yahoo.com

With its low oil volume and three-minute filtration process, the latest F5 fryer from Henny Penny has been capturing the eyes of end users, says Michael Eyre, product director at Jestic Foodservice Solutions, which supplies the F5.

He said: “These products deliver brilliant performance first and foremost whilst also ensuring positive stewardship of resources. Using less oil and clogging up fewer pipes can only be a good thing for both business and the environment.

“Given the challenges of the market today, it can be difficult for operators to find the right message for their business. There are so many competing voices and demands on their time. At Jestic, we aim to simplify the process and share the right information with the right customers at the right time.

“Our demonstration kitchen in Paddock Wood, Kent allows our culinary team to host regular customer sessions where we can not only discuss the latest innovation but bring it to life with hands-on demonstrations.

“We can, for example, illustrate why the Henny Penny F5 fryer is the most technically advanced fryer on the market, using less oil to achieve brilliant results and minimising overall oil usage.”

Mr Eyre added that the hands-on sessions offer the team the opportunity to highlight just how sustainable the company’s products are.

Hupfer Easy Rider

Marc Sumner, sales and marketing director at Hupfer UK, said: “Sustainability-focused products can drive efficiencies to support green objectives in many ways. Hupfer’s range ‘makes work flow’ – driving efficiencies across catering operations, including direct energy savings and also efficiencies in output, speed and logistics to help deliver more sustainable operations.

“One of the best examples is Hupfer’s Easy Rider racking system, and more specifically, the Buy Back scheme the company offers on stainless steel shelving.

“Easy Rider raises the game for dry and cold room storage solutions, offering enhanced flexibility and up to 100% more shelf space with the same room size to make the most of all available space.”

Enhanced capacity means fewer deliveries, helping to reduce carbon footprints for operators, he added.

The product’s stainless steel shelving elements are also made from approximately 85% recycled stainless steel and can be recycled.

Valentine Vito

Valentine & CuisinEquip is the exclusive distributor of the Vito range of portable oil filtration equipment.

Steve Elliott, sales director at Valentine and CuisinEquip, said: “Without the need for any additional chemicals, the Vito range helps to preserve the optimal taste, colour and texture of fried foods, removing food particles and harmful carbon from the oil. What’s more, an operator can reduce oil usage and therefore associated waste by as much as 50%, contributing to a more sustainable, efficient environment by reducing a site’s carbon footprint.

“It’s true that the latest technology can work in conjunction with sustainable equipment to really deliver results in a professional kitchen environment.”

Working in conjunction with Vito, the team from Valentine and CuisinEquip launched VITOconnect – an intelligent cloud-based platform for commercial kitchens.

Mr Elliott added: “In a world of fully connected kitchens, operators have come to expect data and remote monitoring at their fingertips. The launch of VITOconnect takes monitoring to a new level, with operators being able to remotely access information about their Vito usage from a smartphone, tablet or PC, anywhere and at any time.”

Synergy Griddle

Having previously revolutionised the grilling industry and set the standards for all to aim for, Synergy Grill Technology has now turned its sights to providing excellence in the griddle market.

Justin Cadbury, CEO of Synergy Grill, said: “The Synergy Griddle offers superior cooking consistency and performance. The Synergy Griddle has a smooth or ribbed surface that is heated by integrated elements, which provides a precise, consistent temperature across the entire surface.

“The Synergy Griddle has a small temperature difference in thermostatic cycling temperatures (accurate to 5ºc) and hotter and cooler spots on the cooking plate are more even, providing a more consistent cooking environment that reduces the risk of undercooked or overcooked food. In testing, the Synergy Griddle provided 42% more usable cooking area for the same power output thanks to improved temperature consistency.”

The new product also has integrated elements that reduce thermal shock as well as allowing a smaller temperature difference.

Meiko M-iClean

Essential steps to being green include reducing energy, water, and chemical usage in dishwashing, notes Paul Anderson, managing director of Meiko UK.

He said: “Caterers can use heat recovery to generate free energy from the waste rinse water and steam generated by their dishwashing equipment to reduce carbon emissions. That makes a great point to highlight as part of a transparency campaign about ‘green’ catering – recycling where we can.

“Meiko’s latest M-iClean undercounter dishwasher cuts operating costs by up to 21% compared to the first M-iClean dishwasher. That machine was the first to introduce energy-saving heat recovery for this type of machine, and it provided a 15% saving compared to its predecessor, the Meiko FV40.2.”

The new M-iClean UM’s energy consumption now achieves under 5kW total connected load (@400V) compared to nearly 7kW total connected load for the earlier model.

Mr Anderson added: “Energy savings do not make a product green…it is how you use that product over its lifetime that makes a green catering operation.”

Winterhalter ConnectedWash

Sustainability has always been one of Winterhalter’s focuses as a manufacturer, whether it’s finding ways to improve the longevity of its product range, or through developing energy saving features, says Paul Crowley, marketing development manager at Winterhalter UK.

He commented: “Online connectivity has really started to come into its own recently with more operators looking for ways to cut energy use, or work smarter with their energy budget. The ConnectedWash system, which is available on all models in Winterhalter’s range, gives operators a deep insight into how their machine, or even their estate of machines, are being used.

“Live and historical views of full operational data can be accessed via an online portal. These can be used to help optimise each dish or glasswasher’s workflow. For example, if one is being turned on too early before its first wash it is using energy unnecessarily. Avoiding this could save at least £1 a day, which adds up, especially if multiplied over an estate of machines.”

Wexiödisk WD-6 DUPLUS

All of Wexiödisk’s communications centre around sustainability – it’s part of the company’s DNA and therefore a fundamental part of all of its dishwashers, according to UK and Ireland country manager, David Glover.

He said: “We are currently working with a pub chain that has installed our WD-6 DUPLUS dishwashers across their estate. Our research has been conducted against three other comparable models and the fact that our DUPLUS technology can reduce energy bills to the extent we have proven, will have a big impact for businesses. After installing water and electricity monitors on each dishwasher, we took data readings on consumption and extrapolated them out to an annual cost saving across the customer’s estate.

“The results are clear. The WD-6 DUPLUS uses considerably less energy per basket, resulting in significant savings per dishwasher compared to other brands/models, delivering substantial savings across an estate.”

Wexiödisk’s patented rinsing technology uses considerably less clean water than traditional final rinsing systems.

MKN FlexiCombi

Michael Eyre, product director at Jestic Foodservice Solutions, which supplies the MKN FlexiCombi, said: “It’s not unusual that today many of our customers demand products which can help enhance their sustainability credentials. This isn’t purely motivated by a desire to do good, because as technology has evolved, we are increasingly seeing that the ‘greenest’ products are also those which make the most business sense.

“Products which make better use of raw materials, oils and ingredients not only demonstrate care towards natural resources, but also help reduce raw material costs and help operators do better business overall.”

The FlexiCombi can come with an optional grease collection system from MKN, as well as the MKN combi’s Greeninside display which appears after each cooking process (on Magic Pilot electric appliances only), sharing the water and waste consumption before automatically filtering, removing waste oil, and draining the wastewater from the combi oven.

Adande Bora

The Adande Bora open-display cabinet powered by Aircell offers sustainability and efficiency benefits to businesses. With its super-efficient design, the Bora holds the cold air within the cabinet instead of pushing it out into the aisle, resulting in the most efficient energy rating among open-display multi-decks on the market.

This translates to significant cost savings for retailers and hospitality operators, as it can reduce their energy bills by a substantial amount. Additionally, Bora’s energy-saving capabilities contribute to a lower carbon footprint, aligning with environmental goals.

Adande said it aims to keep this transparent as its engineers test Bora cabinets in the firm’s testing facility in Lowestoft. Adande also compares energy costs with other multi-decks based on energy labels and pence per kW/h. Its drawers use up to 50% less energy than other competitor’s products in some cases, the company added. Additionally, up to three drawers can be run from a single three-pin plug.

Unox: Taking steps towards the ultimate goal

The importance of sustainable operations cannot be understated, notes Scott Duncan, managing director of combi oven supplier, Unox UK.

He said: “Without doubt, sustainability, to reduce a business’s impact on the environment, has become one of the most crucial elements to any foodservice business, while also being front-of-mind for customers. In general, the hospitality industry has embraced the movement towards net zero, with some significant steps having been taken in recent years to achieve the ultimate goal.”

He added that there is no doubt being seen as ‘green’ has a significant advantage in today’s industry.
Mr Duncan said: “While some are significantly more proactive and ambitious than others, the industry is becoming much more aware of so-called ‘greenwashing’, making it harder to simply claim a business is green without backing it up with clear proof.”

Source foodserviceequipmentjournal.com.

To fill that gap, Reynders—whose casual-dining experience includes Red Lobster, Darden, Tijuana Flats and more—developed a new collection of approachable, flavor-forward dinner entrees and sides. He also worked on filling the lunch gap with $10 menu items that could get customers in and out quickly. And he expanded the bar menu with craveable bites like fried cheese curds, truffle fries and shareable flatbreads.

All along, his R&D goal was to make sure the food complemented and didn’t overpower Bar Louie’s all-important cocktails. And while affordability was key, Reynders paid lots of attention to execution, too. Performance provides value to consumers as much as price, he feels.

Source restaurantbusinessonline.com

Freier digs into the report to reveal vivid details behind the predictions. Listen to find out how weather is impacting menus, why breakfast and brunch are rising in popularity, how TikTok is influencing what we eat in restaurants and why 2024 is “the year of the tomato.”

Listen to this episode on the Menu Feed Podcast on all your favorite listening apps.

Source restaurantbusinessonline.com

Consumers complained that clear, hard plastic was found under the breading.

“We are extraordinarily proud of our brands for their tireless commitment to innovation, creating new products that redefine excellence as we lead the way to a more sustainable future,” said Adrianne Tipton, chief technology officer.

Eco-Products was recognized for creating a method of printing on molded fiber products, allowing operators to display their brands and their commitment to sustainability.

“Printing limitations have made it difficult to effectively brand and message molded fiber items,” said Nicole Tariku, director of product development for Eco-Products.

“This breakthrough will help operators deliver an elevated brand experience and make it easier for consumers to identify the products as compostable.”

Vegware earned its award for bringing to market a new option for customers that need a fiber-based cutlery solution that is compostable.

“We are truly honored to be recognized for developing our groundbreaking new paper cutlery, a sustainable alternative to traditional plastic utensils,” said Helen Mathieson, managing director of Vegware.

“Our cutlery combines strength and durability to handle the crunchiest of meals, while delivering a silky-smooth eating experience. Moreover, it’s compostable in commercial facilities, embodying our commitment to developing sustainable solutions.”

The 2023 Foodservice Packaging Awards, sponsored by QSR magazine and the Foodservice Packaging Institute, were presented at FPI’s fall conference in Pittsburgh.

“These award-winning packages illustrate the power of design in influencing customer purchasing decisions while also increasing product performance in foodservice packaging,” said Natha Dempsey, president of FPI.

Both Eco-Products’ printing method and Vegware’s paper cutlery offer several benefits, according to the company.

Eco-Products’ new printing technology allows operators to better highlight their brands on food containers, as well as provide more directions on how to properly dispose of them.

With the industry facing ongoing challenges with contamination at compost facilities, better labeling represents an innovation that helps keep organics out of landfills.

Vegware’s paper cutlery offers a ridged design and reinforced tines, providing an option for those seeking an alternative to plastic or wood utensils.

Vegware’s paper cutlery also recently received a packaging award at the Free From Food Expo in Barcelona and was a runner-up at the Sustainable Food Awards in Amsterdam.

Read more packaging news from The Shelby Report.

The restaurant industry finds itself at a crossroads, navigating a dynamic landscape fraught with supply chain disruptions, economic instability, labor scarcity, and evolving customer tastes, requiring unprecedented agility.

Enter artificial intelligence (AI), whose meteoric rise was driven by ChatGPT in early 2023 and captivated over 100 million users in fewer than two months. Since then, we’ve witnessed a revolution in business operations, including those within the restaurant industry.

Embracing AI-powered technology enables restaurants to unlock its transformative potential. Optimization, automation, streamlined management, and enhanced customer engagement converge to deliver the next generation of dining experiences.

AI Solutions for Resilient Supply Chains

Global supply chains still face unprecedented challenges, from ongoing pandemic-induced bottlenecks to geopolitical tensions. With restaurants struggling to navigate these disruptions, which complicate operational processes to manage inventory and eliminate food waste, AI has emerged as a powerful tool to restore stability and resilience.

AI enables restaurants to see into the future of their supply chain, providing them with insights to conquer many challenges. By crunching historical data on foot traffic, sales, weather, and other key factors, robust machine learning (ML) algorithms predict demand with unparalleled accuracy. This future-proof approach prevents over-ordering, reducing food spoilage and its associated financial and environmental impact.

Restaurants cannot avoid the financial sting of food waste. The industry loses $25 billion in revenue from more than 11 tons of food waste generated yearly. One solution? AI-powered supply chain optimization—a technology delivering near instantaneous ROI. For every dollar invested in food waste reduction, restaurants can reap about $8 in cost savings. Imagine this combination of environmental and economic benefits elevating AI as an essential weapon in the fight against food waste.

Restaurants informed with real-time shipment tracking can pivot to react quickly to delays, ensuring ingredients arrive when needed. Sophisticated inventory management systems driven by AI become the ultimate guardians against waste, meticulously tracking expiration dates, ingredient levels, and future menu promotions to optimize orders with laser precision. This vision empowers restaurants to navigate supply chain complexities with efficiency and clarity.

Predictive analytics and real-time visibility help restaurants confidently navigate the ever-shifting supply chain landscape and potential disruptions, safeguarding profits and customer loyalty.

AI-Driven Analytics Increase Economic Success

As inflation drives costs higher, restaurants must find ways to offset expensive ingredients, labor, and rent while still meeting value-conscious customers’ expectations.

AI-driven analytics have emerged as a reliable tool for enabling restaurants to make value-based decisions, ensuring profitability during economic turbulence. By constantly monitoring market trends, AI empowers restaurants to adapt to fluctuating supply costs and consumer behavior with dynamic menu pricing to protect profitability amid inflation.

Remember when the recent avian flu outbreak,paired with increased fuel and other costs, drove up the price of poultry? Restaurants using AI could adjust menu prices automatically to maintain their slim profit margins.

With 92% of restaurant operators concerned about rising operational costs—and more than 40 percent investing in technology—the data is clear: AI has moved beyond luxury to necessity. It allows for targeted cost reductions without compromising quality or customer expectations. By leveraging AI’s insights, restaurants can confidently adjust to evolving market dynamics and fine-tune pricing influenced by inflationary pressures.

Bridging the Gap: AI and Robotics as Allies in the Labor Landscape

Labor shortages continue to impact restaurants. In July 2023, the sector’s employment rate hovered at 0.5 percent below its pre-pandemic peak. Monthly job growth slowed significantly between April and July 2023, averaging fewer than 11,000—a stark contrast to the robust 53,000 average job gains of Q1.

AI and robotics offer restaurants a lifeline. Freed by AI-powered robotic servers and self-ordering kiosks that automate customer transactions and food delivery, human staff can focus on food prep, customer service, and other higher-value tasks.

This automation has increased operational efficiency by 30 percent, mitigating the impact of reduced staff. It also reduces costs between 5% to 9%, with self-order kiosks generating 30 percent increased sales in fast-food restaurants. Experts predict a 69% surge in AI and robotics use by 2027.

In the future, restaurants will likely rely more heavily on AI and robotics to deliver an enhanced customer experience, relieve operational strain, and gain a competitive edge in a challenging hiring market.

Leveraging AI for Personalized Restaurant Experiences

Today’s customers crave tailored experiences. A whopping 66 percent expect companies to intuit and understand their needs—and over half yearn for personalized offers. These expectations present a golden opportunity for restaurants to leverage AI to craft unparalleled loyalty and engagement.

Sophisticated AI algorithms can analyze vast amounts of customer data, uncovering hidden preferences and unlocking doors to personalized recommendations. Imagine: A restaurant uses guests’ past orders to recommend customized meals or tempting offers highlighting favorite menu items. AI enables restaurants to ensure each guest feels uniquely appreciated and valued.

A one-size-fits-all approach isn’t what customers want. However, AI offers restaurants a strategic tool for developing hyper-targeted campaigns instead of wasting resources on broad promotions.

Restaurant Ops 2.0: Unleashing AI’s Potential

In the competitive restaurant landscape, future customer loyalty and revenue growth hinge on one key factor: AI-powered personalization. By leveraging AI to understand and cater to individual customer preferences, restaurants will unlock a vital differentiator.

AI is poised to transform restaurant operations, ushering in a future of personalized service, optimized efficiency, and sustainable growth. From automating kitchen processes and order processes to seamlessly customizing order offerings and dining experiences, AI will redefine the industry.

Fully realizing AI’s potential will require restaurants to navigate specific challenges:

Protecting data privacy.
Providing proper employee training.
Avoiding an overreliance on technology.
By proactively mitigating these risks, restaurants will tap into AI’s true value, enhancing customer experiences and significantly increasing profits. The restaurant industry’s future is undeniably intertwined with AI. Those embracing this transformative technology will build resilience against disruption, gain a competitive edge, and assume a role in shaping the industry’s future — one personalized experience at a time.

Source qsrmagazine.com

He didn’t need to. Starbucks has found itself embroiled in the Israel-Hamas war unlike perhaps any other company in the U.S. The issue has led to talk of boycotts, reports of a sales and market valuation decline and a growing incidence of damage to the chain’s locations that in some of the worst cases prompted temporary closures.

And that apparently prompted Narasimhan to use an end-of-year message to make clear where Starbucks stands on the issue.

“I am concerned about the state of the world we live in,” he wrote. “There are conflicts in many parts. It has unleashed violence against the innocent, hate and weaponized speech and lies—all of which we condemn.”

Narasimhan then noted the impact this has had on the company’s stores and on its employees, which Starbucks calls “partners.”

“Many of our stores have experienced incidents of vandalism,” he wrote. “We see protestors influenced by misrepresentation on social media of what we stand for. We have worked with local authorities to ensure our partners and customers are safe. Nothing is more important.”

“Our stance is clear,” he added. “We stand for humanity.”

The vandalism Narasimhan speaks of has grown at the chain’s locations in recent weeks, since Hamas-led Palestinian groups launched an attack on Israel in October, prompting the worst conflict in the region in 50 years.

Reports from that war have spread on traditional and social media and led to protests around the world. And it quickly engulfed Starbucks and its union, Starbucks Workers United. In a tweet on the social media site X, the union said, “Solidarity with Palestine!” that prompted U.S. Sen. Rick Scott (R-Fla.) to call for a boycott of Starbucks.

While the union’s tweet has since been deleted, it later tweeted that the union stands with Palestine, with a deeper explanation for its view. Starbucks and the union then traded lawsuits in federal court over the issue, with Starbucks arguing that the union’s use of the company’s logo confuses people who conflate the union’s stance with that of the company’s.

The union, on the other hand, argues that Starbucks is defaming the group by implying it supports terrorism.

Regardless, the issue has made Starbucks a focal point of protests on one side or the other. In November, for instance, the company temporarily closed a Starbucks Reserve Roastery after pro-Palestinian protesters apparently swarmed the building and spraypainted the walls, windows and floors.

A location in the State College area in Pennsylvania was also forced to close temporarily after apparent protesters broke a glass and spraypainted “Free Palestine” on the building. Two stores in Houston, another in San Carlos, Calif., stores in Durham, NC., Worcester, Mass., and other locations have also been subject to vandalism.

At the same time, there are reports that boycotts associated with the issue are hurting Starbucks’ sales and its stock price.

Starbucks stock declined nearly 10% after hitting more than $107 per share in November. The decline followed two events.

First was a report in the Wall Street Journal noting that Luckin Coffee had overtaken Starbucks in China, the company’s most important growth market. Second was a report by JP Morgan suggesting that sales had started to slow. Bloomberg noted the decline and the JP Morgan report, suggesting that perhaps the “Red Cup Rebellion” at unionized stores on Red Cup Day Nov. 16 was partly to blame.

But that also led to reports in other publications that equated the decline with boycotts related to the Israel-Palestine war, noting that said boycotts helped cause the company to lose “$11 billion in value” as a result.

Whether its sales are indeed slumping remains to be seen. Data from third-party sources can frequently be misleading, and boycotts have typically failed to make any sort of dent in sales at giant restaurant chains.

At the same time, the letter illustrates just how difficult this month has been for the Seattle-based coffee giant.

Source restaurantbusinessonline.com

Artificial intelligence moved from the stuff of science fiction to a near obsession for tech-minded dreamers. Yet its inroads into the restaurant business were minimal, suggesting the sizzle is still far greater than the substance, at least for right now.

But those weren’t the only currents evident in the field of restaurant tech. Here are our picks of the major trends of 2023.

Artificial intelligence isn’t so smart—at least not yet
The benefits of artificial intelligence were felt minimally at best by restaurants in 2023, but all the impassioned talk about its potential may well have contributed significantly to global warming. The rollout of ChatGPT in late 2022, a true quantum leap for the emerging tech, set the industry ablaze early this year with speculation about the possibilities. Could it respond to customer complaints without human intervention? Might the computing power be harnessed to craft menus, or draft the ideal marketing plan, factoring in proven science? Or should it be used like a high-tech Eight Ball, using reams of analyzed data to affirm or blast a CEO’s decision?

Yet by the holidays, the technology was still a rarity in the business, used primarily as an improved voice-recognition tool. It was hailed by some of those early adapters, but others were ready to dismiss it as an advance as over-hyped as NFTs or bitcoin. Instead of bracing for a revolution, the industry settled into wait-and-see mode.

Ghost kitchens and virtual restaurants get shooed away
The pandemic taught restaurants that a brick-and-mortar place to eat or pick up a to-go meal were as unnecessary in the Digital Age as weaving your own tablecloths. Just brainstorm a new restaurant brand, complete with menu and logo, and pretend via your marketing that it’s real enough to throw a shadow. Then do the actual cooking in someone else’s kitchen. Who’ll be the wiser? And would customers care even if they did know?

The hitch was the public’s unexpectedly strong desire to dine out again once pandemic restrictions lifted for good. They wanted to sit at a table with other people around them, soaking up the ambience and experience. Pretend restaurants and delivery-only kitchens couldn’t meet those yearnings, and the ghost kitchens within conventional restaurants had trouble just supplying their host brands.

The exceptions proved to be old-line family-dining chains, like IHOP and Denny’s. They actually increased the number of virtual brands they offer.

A tech bubble bursts
The advances in what technology could do for restaurants turned the industry’s vendors into hot investment vehicles. Hundreds of millions were pumped into the companies with the expectation that exponential growth would continue indefinitely. No wonder newcomers sprang up like dandelions in the spring, often promising to revolutionize the business.

But somewhere along the way, the demand from restaurants failed to keep pace. It wasn’t that restaurants weren’t buying new tech. They just didn’t have to keep buying it. They also realized that big-ticket advanced systems might have been overkill for their needs. Suddenly, mundane tech like POS kitchen-display and labor-scheduling systems came back into vogue.

What followed in the supplier community was a wave of consolidations, deep staff cuts and total recasts of some businesses, and the trends appear to be continuing. Kitchen United, for instance, recently shut all of its ghost-kitchen complexes and announced that it would focus on software products going forward. That’s after GrubHub laid off 400 people and Olo cut its workforce by 85.

It remains to be seen when the flux in tech will settle down.

Kiosks get a second wind
Stations where fast-food customers can order and pay for their meals without human interaction have been around since 1977, but their history has not been one of steady growth. Seeing the effects on labor, restaurants were eager to embrace them, even if the cost can run as high as $4,000 per unit. The issue was consumer acceptance. No matter how easy the machines were to use, some patrons preferred to deal with a human.

But that resistance is waning fast, one operator after another attested in 2023. Shake Shack, KFC and Taco Bell have all indicated in recent months that the devices will become a bigger part of their operations going forward. McDonald’s first started testing the machines in 2003. Now the option is ubiquitous in its restaurants. Ditto for Panera.

Like the QR code, kiosks are an old technology that’s finally hit its stride.

Source restaurantbusinessonline.com

Calamansi has citrus notes and may be used in place of lemon in everyday foods and beverages. Las Vegas’ Aqua serves Tasmanian Ocean Trout with a drizzle of calamansi butter.

Tamarind provides savory foods — every-thing from burgers to grilled vegetables — with an acidic, tart, sour-like flavor profile that resembles the fermented notes associated with kimchi and pickled foods. It’s often used in condiments. Thattu, a Chicago-based restaurant focused on the cuisine of Kerala, India, offers a fried yucca ball appetizer with an onion tamarind chutney.

“Innovation is happening across all categories of flavor,” said Doug Resh, director-commercial marketing, T. Hasegawa USA, Cerritos, Calif. “The evolving culinary landscape, influenced by shifting trends during the pandemic, has increased consumer desires for excitement and experiential elements in a range of food and beverage offerings.

“The industry is carefully balancing exotic flavors with familiar comfort foods that US consumers already love. As consumers expand their palates to include new flavor combinations and unexpected ingredients, a ripple effect of innovation is evident in both packaged foods and restaurant foodservice in the form of fusion foods.”

Formulating for fusion
The opposite of non-characterizing is bold and defining. Such flavors are trending, but in atypical applications. Think about a spicy dill pickle bagel and pizza-flavored string cheese, for example. Such concepts appeal to the growing number of consumers eating mini meals throughout the day. They crave satisfying “mealtime” flavors in foods that are now snacks.

“We are expecting most of the flavor innovations and product launches to take place in the snacking space,” said Sydney Byrne, marketing specialist, Sensient Flavors & Extracts, Hoffman Estates, Ill. “Even traditional mealtimes are trending toward snackability, creating opportunities to either eat on-the-go or to bring a variety of smaller bites or tastes together for a shareable buffet feel.”

She cited ice cream and charcuterie as examples.

“When you walk down the grocery store aisle, more than half of the ice cream category is novelties,” Ms. Byrne said. “Snackable desserts are not only a way to indulge on-the-go, but they also create built-in portion control along with a standard flavor base to build upon.

“Charcuterie boards provide an opportunity to try new flavors that might be outside a consumer’s typical comfort zone. There is not a big commitment involved in trying a bite-size new-to-you food or flavor that encourages a bit of adventure and entertainment around the eating experience.”

Ms. Byrne’s observations support what ADM, Chicago, is calling 2024 — It’s the year of “unapologetic consumer choice.”

“We see innovation happening in all dayparts and occasions, as manufacturers address market gaps with flavor and formats,” said Jennifer Zhou, senior director flavors for global product marketing at ADM.

Traditional sweet baked goods enjoyed at the morning coffee break or as dessert have now become snacks. There’s a trend to offer them in non-sweet profiles.

“Bakeries and coffee shops are updating menus in the afternoon to feature flavors like ‘everything bagel’ in product forms like Danish pastries,” said Cathy Wisloski, manager of insights, Dawn Foods, Jackson, Mich. “We are seeing an increase in brioche, pretzel and naan, as well as savory ingredients like herbs and cheese in traditionally sweet items, such as scones and croissants.”

General Mills, Minneapolis, participated in the movement with its summer rollout of Nature Valley savory nut crunch bar in three flavors: everything bagel, smoky barbecue and white cheddar. Savory complements consumers’ growing desire to reduce added sugar intake.

“Our new technology has enabled us to solve a consumer need for convenient snacks that don’t require the use of syrups and sugars to bind the bars together,” said Ali Shaikh, senior brand manager – bars innovation at General Mills. “This has unlocked an opportunity for us to craft Nature Valley snack bars with 2 grams of sugar in surprisingly savory flavors, delivering on a whole new set of cravings.”

Ms. Byrne said, “In 2024, expect to see more food categories that have traditionally been exclusively sweet, such as muffins, to start offering more savory options, like bacon or pretzels or popcorn. We are going to see more savory granola bars.”

And just as there are more savory flavors going into traditional sweet snacks, there are sweet flavors being formulated into traditional salty snacks. Take the potato chip, for example. In the past year, new rollouts have included cinnamon sugar, pumpkin pie and chocolate dipped. Still, savory remains the most common flavor profile on salty snacks. But savory knows no boundaries.

“It’s no longer just flavors like salt and vinegar,” said Aaron Andrews, associate corporate chef, Ajinomoto Health & Nutrition, Chicago. “It’s guacamole, sriracha, Kobe steak, spicy crayfish and more.”

Lisa Jackson, director of marketing, FlavorSum, Kalamazoo, Mich., said, “Interest and innovation in complex flavor profiles is increasing. Momentum is growing around combinations with smoky, rich, savory and sour tastes.”

The complex flavors know no borders. Anywhere around the world is fair game in the world of snacks.

“We’re seeing more international flavors infused with traditional snacks, such as chips, crackers and popcorn,” said Eric Quirin, sales director, Chaucer Foods, Hull, UK.

The trend is focused on satisfying mealtime cravings in a portable snack. It’s also about experimenting with an unfamiliar cuisine in a familiar format, and in a portion that does not break the budget.

“In the new year, consumers will seek global flavors previously not on their radar, including South and East Asian cuisines, as well as African, Latin American and Middle Eastern,” Ms. Zhou said. “We’re seeing this trend thrive within the snack and sweet treat spaces, where bite-size formats allow for flavor exploration, enabling consumers to take a sample-sized approach to experiencing new flavors.”

She cited such examples as sweet, yet tart, blood orange Italian ice or a yuzu-flavored sake cocktail. On the savory side, spices such as shacha (a Chinese mix of garlic, shallots, chiles and dried shrimp) are being formulated into salty snack mixes.

“Some top-trending ingredients in snacks are sesame seed, ginger, jerk, spicy honey, miso and tahini,” said Cecilia Pereyra, global product marketing-flavors for IFF, South Brunswick, NJ.

Angel Wong, director of flavor development at Embassy Ingredients, said, “Consumers are looking for flavor experiences that take a specific international dish and reinvent it into a new application, such as Mexican street corn scones.”

Bringing the world home
The global flavors trend exploded during the pandemic when travel was limited. Consumers sought adventure through local food choices, and now they want more.

“Think beyond fusion foods and third culture cuisine to different cultures bravely inspiring each other,” said Soumya Nair, global consumer research and insights director, Kerry, Beloit, Wis. “Concepts include za’atar wings, birria ramen, sashimi tostadas, tandoori masala pasta, wasabi mashed potatoes and cheeseburger ravioli.”

Rachael Jarzembowski, marketing manager, Wixon, St. Francis, Wis., added, “An Aleppo pepper seasoning, or seasoning blend, could be used to batter fried chicken, to season shrimp, or to even season cauliflower, or other vegetables for a fun international twist. Try adding pomegranate molasses, a staple ingredient in Middle Eastern cuisine, to a barbecue sauce, or adding black garlic, an East Asian ingredient, to a simple yet versatile condiment, like aioli to dip fries in or spread on a burger.”

Several flavor houses believe regional Indian cuisine is the next big thing, and it complements McCormick’s forecast for tamarind.

“Flavors inspired by Indian cuisine have been trending due to a variety of factors,” said Shannon Cushen, director of marketing, Fuchs North America, Hampstead, Md. “First, Indian cuisine has been becoming more mainstream, making it approachable and less intimidating to consumers who aren’t so adventurous. At the same time, however, Indian cuisine is more exotic than other mainstream global cuisines, which is appealing to adventurous consumers.

“Indian flavors and dishes are having more presence in foodservice and prepared meals right now but expect to see them having an increased presence in snacks, sauces, proteins and dairy in the near future.”

Chris Koetke, corporate executive chef at Ajinomoto, said, “Americans will learn that Indian food is not just about high levels of chile heat, but a true panorama of spice and flavor combinations.”

And as global flavors take center stage, expect to see more of a focus on regional flavors and cuisines from Africa, an entire unexplored continent of cuisine that Americans don’t know. Saying “African cuisine” is like saying “European cuisine,” which really isn’t saying anything at all.

“So far, only Moroccan and Ethiopian food has made its mark in the US, but there is so much more,” Mr. Koetke said. “From Senegal to Nigeria to Kenya, there is a spectrum of flavors combined in unique and enchanting ways that are waiting to be discovered.”

Flavor flashbacks
While international flavors provide adventure, nostalgic ones offer comfort. That’s something many need during these busy times.

The 1990s now are considered the “oldies” to millennials, and many are fascinated with everything from focaccia to dirt cake. Such flavors may be translated into macaroni and white cheese with a flatbread crumb topping and sprigs of rosemary, or a layered chocolate parfait with sour gummies.

“As millennials age, nostalgia now stretches to include the 1990s,” Ms. Wisloski said. “And they enjoy enhancing their nostalgic memories with new versions of the classic.”

Flavors such as birthday cake, cotton candy and strawberry lemonade are some of the fastest-growing flavors on dessert menus, according to Datassential, Chicago.

“These childhood favorites can be brought to life in many different dessert concepts, from cupcakes to donuts to cake pops,” Ms. Wisloski said. “In addition to nostalgia, 2024 will bring a focus on contrasting textures, like the spongy exterior of a lava cake surrounded with a gooey chocolate filling. Because trends spread to adjacent categories, we are seeing chewy, gummy boba move beyond bubble tea into desserts and cakes. With a similar texture, mochi is also gaining popularity in donuts.”

Ms. Pereyra said, “Favorite cereal, confectionery and ice cream brands from the ‘90s are making a comeback and hitting it big with flavors. There’s a trend in taking an old flavor and showcasing it in a new medium, such as sour candy cupcakes and root beer float cinnamon rolls.”

Cinnamon sugar is making a comeback, said Ms. Zhou.

“It adds a warm and familiar flavor profile to savory and sweet dishes,” she said.

Casseroles and one-dish meals also are gaining traction on menus, according to Datassential. Beef stroganoff, for example, has experienced 176% growth over the past four years.

“So why not make a beef stroganoff dip,” Ms. Jarzembowski said.

Mr. Quirin added, “People love comforting and nostalgic flavors, but we’re also seeing a trend that combines reliving fond memories with a healthy twist. Instead of ditching the foods and beverages they love, customers are bringing them new life by infusing and combining them with more nutrient-dense, functional ingredients. For example, instead of a chewy fruit snack filled with artificial ingredients, formulators can use freeze-dried fruit and vegetable powders to add a nutritious boost, plus natural flavors and eye-catching colors.”

The same is true of boozy flavors from the ‘90s, like cosmopolitan and Long Island iced tea. They are going to start showing up in mocktails and water ices.

In general, spirit and alcohol-inspired flavors are expanding across food formats, in particular snacks.

“Think about a smoky yet sweet whiskey-infused popcorn, a salty and crunchy beer-glazed peanut snack, or a vanilla and bourbon boozy ice cream treat,” Ms. Zhou said. “Consumers are also embracing unconventional flavor profiles, manifesting in products like a lychee rosé popsicle or a grape candy cordial.”

Source foodbusinessnews.net

Earlier this week, PepsiCo’s Doritos brand unveiled a collaboration with global flavor innovator Empirical to create Empirical x Doritos® Nacho Cheese Spirit. The limited-release offers what the brands call a”multi-sensorial, delicious beverage experience that smells and tastes just like Doritos Nacho Cheese Chips

“Doritos is all about disrupting culture and bringing our fans unexpected, bold experiences,” Tina Mahal, senior vice president of marketing for Frito-Lay North America, said in a statement. “We’re always pushing our fans to try new things, so we figure it’s time we disrupt the spirits category by offering our iconic nacho cheese flavor in a bottle.”

To create the flavor, Doritos Nacho Cheese flavor is extracted through Empirical’s innovative production process, using real chips and vacuum distillation. The companies said that, unlike traditional distillation methods, vacuum distillation operates at lower temperatures, preserving the full spectrum of flavors derived from Doritos.

Limited-edition bottles of Empirical x Doritos Nacho Cheese Spirit will be available next month for a suggested retail price of $65.00 online and in select New York and California markets.

Doritos is not the first food brand to expand its reach into alcohol through a novel partnership.

In early 2022, Frito-Lay partnered with Oregon-based Eastside Distilling to create Lay’s Potato Vodka, a spirit made with the same potatoes used for its popular chip. The offering, which cost $40 a bottle, proved to be so popular that it sold out in hours.

Kraft Heinz’s Grey Poupon has previously partnered on a limited-edition white wine, La Moutarde Vin, with mustard seeds from the popular condiment. And Mondelēz International partnered with Barefoot Wine to create a red blend that complements the chocolate, cookies and creme flavors of its Oreo Thins.

As well-known brands look to expand their reach, partnering on alcoholic beverages or other ew categories can be hugely valuable. New categories can grab the attention of people who may not have tried the product in a while or may suddenly make the offering top-of-mind — prompting the consumer to toss a bag of Doritos into their cart.

— Christopher Doering

Nissin’s ‘spiciest noodles ever’ infuses heat into ramen
Spicy foods continue to grow in popularity, and the maker of Cup Noodles and Top Ramen aims to continue leading the charge for hotter offerings in the packaged noodles space with its latest innovation.

Nissin Foods USA has debuted Hot & Spicy Fire Wok, a packet of ramen noodles infused with chili flakes. This spicy offering allows for “more heat independent of the seasoning,” the company said in the press release. The ramen is now available in Torched Teriyaki Chicken and Screamin’ Sichuan Beef varieties at Walmart stores.

Nissin said it is also looking to capitalize on the growth of at-home cooking with the new product.

“By offering Hot & Spicy Fire Wok in an elevated format with chili-infused noodles, we’re hoping to inspire more at-home chefs to find unique ways to bring the heat into their own kitchens,” Priscilla Stantonm, Nissin’s senior vice president of marketing, said in a statement.

Along with the products being available on store stores, Nissin is embarking on a unique philanthropic effort with the ramen in partnership with the New York City Fire Department’s FDNY Foundation, hosting a cook-off where firefighters will craft recipes. The event aims to drive donations to Feeding America; Nissin also said it will donate up to $75,000 of this month’s profits from the new items to the charity.

The ramen category has seen massive growth in recent years — the instant noodles market is projected to be worth $81.8 billion by 2029, growing at a compound annual growth rate of 5.9% according to Fortune Business Insights. As the category leader, Nissin reported double-digit sales growth in the first quarter of 2023, with a 27% year-over-year increase in sales. The Japan-based company announced last month it will spend $228 million on a South Carolina manufacturing plant amid “unprecedented demand” for its products.

— Chris Casey

Source fooddive.com

Let’s take a look at what these changes are and what they mean for food businesses.

An expanding mandate for change
When many food businesses send a bill to their business clients, they email attachments or send paper invoices or PDFs. As the food business goes digital, companies increasingly send electronic or e-invoices. This process streamlines the payment process by reducing paper, speeding approval, and reducing eros and processing costs.

Beyond the operational efficiencies, food businesses have even more reason to use e-invoicing. New global e-invoicing mandates make implementing the process imperative.

Understanding the global e-invoicing mandate

The mandate has been in development for years, especially in Europe. A decade ago, Italy made electronic invoicing mandatory for business-to-government transactions, and five years later, expanded the requirement to include B2B and B2C interactions. Now, over 80 countries have imposed e-invoicing mandates on businesses.

Countries use the mandate to increase the transparency of sales transactions and address VAT discrepancies. With the typical e-invoicing mandate process, instead of the food company sending the invoice directly to the customer, the food company submits the e-invoice in a specified format through a government tax authority portal. There, the government approves the invoice, tracks taxes, and sends the e-invoice to the customer for payment.

Although most grocery businesses impacted by these mandates are in Europe, the requirement also affects those that do business with partners in any of the 80 countries.

While businesses operating in North America are not currently required to provide e-invoicing, that may soon change as more countries implement this directive. However, when that time comes, food businesses in the United States and Canada may not be ready. Nearly one-half of companies surveyed said they still invoice by paper.

Complexities of e-invoicing
Switching to e-invoicing is more complicated than just switching bills to being online. Each country has its own regulations and invoices must comply with each requirement.

France, for example, has one deadline for large and medium businesses and a different one for small enterprises. Germany has 16 federal states–with their own e-invoicing regulations. E-invoicing complexities aren’t limited to European countries. While Chile, Argentina, and Brazil are considered advanced in their mandatory e-invoicing progress, numerous Latin American countries are at different implementation stages.

Making the issue more complicated, if a U.S. or Canadian food business has overseas subsidiaries that are affected by the mandates, the business has to determine whether the subsidiaries, corporate headquarters, or global provider heads the process. Even in one company, the finance, tax, or procurement departments might handle e-invoicing– making it difficult to maintain consistency. Often the local business or partner may be more aware of invoicing requirements than the headquarters, requiring clear communication to eliminate confusion.

Getting e-invoicing right is essential. Those companies that don’t, can get fined. Governments may also delay payments to non-compliant organizations– significantly limiting their cash flow.

Although much of the focus is on why it is important to be aware of and meet the new e-invoicing mandates, it’s also important to recognize the benefits e-invoicing offers business operations. E-invoicing streamlines the process making it easier to exchange documents with trading partners. It also decreases the likelihood of errors and speeds the payment cycle.

As e-invoicing increases globally, food businesses must ensure they prepare for the changes.

How U.S. and Canadian businesses can get ready for e-invoicing

Know the current e-invoicing regulations. Many companies aren’t familiar with the mandates and can be caught unaware. Stay up-to-date on shifting regulations in the food industry by monitoring government websites and food industry publications.

Look at your current invoicing system. If you currently use an e-invoicing system, look at factors such as data format, integration capabilities, security, and storage requirements to see how compatible the current system is with the new requirements and if gaps exist.

Evaluate e-invoicing providers that offer legal compliance with the myriad of regulations.

Implement and test the new process, including training employees on the procedures. Do pilot tests to ensure the new process integrates with the entire system.

Assess and ramp up current security and privacy measures. E-invoicing mandates often have heightened requirements to protect sensitive information and to follow enhanced privacy regulations.

E-invoicing is becoming a global standard. Even if companies aren’t required to adopt e-invoicing they can still benefit from implementing it, to streamline business processes now, and to prepare for the future.

Source fooddive.com

There’s no turning back when it comes to foodservice, which has experienced two years of roughly 20% sales growth. But that growth won’t automatically benefit retailers that only make a token effort. C-store operators should already be strategizing for the future of their foodservice programs and if they haven’t yet started, the next best time to do so is right now.

“The future belongs to those who prepare for it today,” National Restaurant Association (NRA) President and CEO Michelle Korsmo said during her keynote speech at the 2023 NRA Show, which highlighted themes that apply equally well to retail foodservice as a whole and c-store foodservice in particular: Where is the industry now? Where is it going? How will it get there?

Convenience stores everywhere — from small operators to large chains, from rural to urban markets — face numerous challenges as they seek to make a foodservice name for themselves and compete not just with each other, but also with fast-casual, quick-service and other foodservice retailers for share of stomach. These challenges only grow when taking into account a tight labor market, rising ingredient costs and other difficulties.

No c-store chain is above these challenges, but industry leaders have built their identities by identifying what they’re good at and leaning into that hard. This can be seen in the winning lineup of Convenience Store News’ 2023 Foodservice Innovators Awards, honoring a slate of retailers that carefully developed and decisively executed their foodservice plans.

Foodservice Innovator of the Year Kum & Go, headquartered in Des Moines, Iowa, crafted a creative, cohesive new menu that met its goals for freshness and health before its acquisition by Salt Lake City-based Maverik — Adventure’s First Stop, while Prepared Foods Innovator of the Year Dash In Food Stores, based in La Plata, Md., pursued innovation across all dayparts while working within its operational limits.

C-store operators that haven’t yet determined what they want their foodservice identity to be can look to a reliable source of inspiration: their customers.

“Retailers who are looking to develop a distinctive foodservice identity should always start with the consumer,” said Kevin Smartt, CEO of Spicewood, Texas-based Texas Born (TXB). “You will quickly identify community needs, preferences, and ultimately gain their trust.”

Ongoing Innovation
Advancing a foodservice agenda requires both clever strategy and operational practicality as c-stores balance what they want to do with what they currently can do and what their customers want them to do.

One way that Tulsa, Okla.-based QuikTrip Corp. achieves this is through careful pursuit of innovation, which the company defines as “the process through which we turn strategy into new products or services,” Stephanie Hurt, head of food innovation and development for the convenience store chain, shared at the 2023 NACS Show.

Hurt discussed how operational innovation can prompt “deep change” that can serve as a powerful competitive weapon in a way that mere operational improvements can’t.

“Excellence in execution can win a close game, but it can’t break the game wide open,” Hurt said. She advised c-store retailers to start new projects at the top, identifying overall purpose and vision before moving to specific goals, strategic plans, department strategy and objectives.

“If you think about how you build a house, your house needs to be on a sturdy foundation and whenever you work on a project, you really need to link it all the way up, right? Because if not, when you get down to the end and it doesn’t fit your company’s strategy and sometimes it feels like it’s a little off, it’s probably because it is,” she said. “So, start high when you’re working on a project like this.”

C-stores also can build their foodservice identities by focusing on offering a concise selection of high-quality, popular products rather than a menu that tries to be everything to everyone. Utilizing effective inventory management practices not only reduces waste and controls costs, but also reduces operational complexity and ensures faster service, Chad White, foodservice category manager at York, Pa.-based Rutter’s, said during the same NACS Show session.

White offered a three-step approach to evaluating a c-store foodservice menu:

Reduce — Look at items in the top and bottom 20% of sales. Even popular items may not be worth keeping if they are overly complex to prepare and could be replaced by simpler, quality products.
Reuse — Proper cross-utilization of ingredients, such as deli meat in a Caesar salad, can both add sales and reduce waste.
Repurpose — Consider that certain ingredients might fit better in a different menu item than where they were originally introduced.
In addition to their permanent foodservice offerings, c-stores can benefit from occasional limited-time offers (LTOs) and seasonal specials to generate excitement, customer interest and trial. These temporary menu items can be tests for permanent additions as well, but that isn’t necessary to achieve positive results. LTOs use urgency and scarcity to generate higher average checks and boost brand loyalty as consumers associate a c-store with novelty and variety.

Source CSnews.com

With its growing advertising business, the report found that Instacart also has helped more than 5,500 brand partners reach new customers and grow their businesses, driving an average of 15 percent incremental revenue lift for them.

“As the leading grocery technology company in North America, we’re proud to have helped generate billions of dollars in shopper earnings and retailer revenue while giving millions of hours back to families,” said Sarah Fleisch, senior director of policy research and development.

“In doing so, as this analysis shows, we’re helping power local economies in the communities we serve. We look forward to continuing to build new products and technologies that deliver measurable, sustainable value for every member of the Instacart community.”

The report also features independent analysis on Instacart’s impact on small businesses, including that it has helped small brick-and-mortar grocers add tens of thousands of jobs and generate billions of dollars in incremental revenue.

Specifically, according to the analysis by Robert Kulick of National Economic Research Associates, Instacart has helped small grocery stores (1-49 employees) in the U.S. increase their revenue by more than $2 billion and create about 66,000 new grocery jobs.

“This research provides further evidence that Instacart has been an economic catalyst for the U.S. grocery industry – and in particular, for small grocers,” said Kulick, associate director at NERA.

“The analysis shows that, from its inception, Instacart has driven significant increases in grocery employment and revenue, with a disproportionately high share of those jobs and sales increases at small businesses.

“It’s clear that the Instacart Effect – the causal relationship between Instacart’s growth and the growth of the grocery industry – is a national phenomenon benefitting grocers, workers, and the economy.”

Notably, a high percentage of the grocery jobs Instacart has helped generate have been at small businesses. More specifically, the 66,000 jobs Instacart has helped create at small grocery stores represents 29 percent of the total number of 231,000 jobs the company has generated across the entire grocery industry – more than double the small business share of all grocery employment in the U.S. (14 percent).

“As a local, fourth-generation, family-owned supermarket chain, our goal is to remain innovative and competitive so that we can continue to serve our community,” said Bob Rybick, CEO at Geissler’s Supermarket with locations in Connecticut and Massachusetts.

“Instacart is helping us access new technologies that improve our operations, so we can stay focused on providing access to fresh, local food and the best possible customer service.”

Kulick’s research analyzed data from across all 50 states and Washington, D.C., to better understand the statistical relationship between Instacart adoption in local markets and grocery employment and revenue growth in the grocery industry.

“At Instacart, we’ve seen firsthand the deeply important role small, local and independent grocers play in their communities and in our national economy,” Fleisch said.

“We’re proud to help small grocers innovate, thrive and grow – and in the process, as this new research shows, we’re thrilled to help them add billions in revenue and create thousands more jobs in their local communities.”

Read more technology news from The Shelby Report.