, UK

Five trends that will shape food-to-go recovery

2022 will be a year for reflection, innovation, concept development and new ways of doing business, an analyst said.

Expect to see a ‘test and learn’ approach as brands continue to navigate the new and evolving ways in which consumers buy food-to-go, IGD said.

The insights agency also identified five key trends they expect to drive the recovery of the food-to-go market:

Consumer needs ‘driving’ formats
Investment in suburban locations will increase and operators will continue to adapt their offers to meet new opportunities such as vending and micro-markets, with hybrid working looking set to become a social norm.

Formats are also being adapted to processes such as delivery orders being dispatched away from walk-in customers, delivery and takeaway-only formats, and the next generation of drive-thrus, IGD said.

Price versus premium
Price will be a key focus, IGD said, driven by varying household budgets and frequency of spending. 

Meal deals are “increasingly” popular at both the lower and higher end of the scale, giving consumers the reassurance of knowing “what they are paying, regardless of their budget.”

Digital at the heart
IGD observed that data is being used more intelligently to develop new products and formats but also to automate processes, such as customer ordering via screens, to free up staff to deliver more added value activities that enhance the customer experience. 

The ‘omnichannel’ approach, specifically, is becoming increasingly prevalent, enabling customers to move seamlessly between in-store, takeaway and delivery service for a consistent brand experience. 

Innovation and evaluation
IGD believes that the agile mindset will continue but innovation will be more “incremental than disruptive”, noting that operators are taking time to review initiatives. 

The sector is told to expect to see more trialing of concepts and partnerships to assess viability and profitability before wider roll-out. “Operators in particular are likely to expand insight teams and increase research budgets to assess the results of new initiatives before deciding where to invest,” it said.

Healthy menus, healthy planet
Health is set to remain a growing priority, along with sustainability, which are being driven by both consumers and the government.

“2022 will be a year for reflection, innovation, concept development and new ways of doing business, as the market moves forward to adapt to the changing needs of the consumer.  With household finances under increasing pressure, the market faces new uncertainty and challenges, so the adaptability and agility demonstrated during Covid will need to remain,” Nicola Knight, senior analyst from IGD, said.

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