January 25, 2017

The Future of “Value” in Foodservice

FoodserviceMillennials are Changing the Game

Today, 79 percent of consumers say that a “good value” is very important to them in deciding where to eat. But as Millennials start to flex their spending muscles, guest expectations are changing as the meaning of “value” evolves. Smart foodservice operators with an eye toward the future are tapping into this movement and redefining the “value” they offer to their patrons.

It has been well reported that today’s twenty-something consumers have unique, non-traditional demands. Sure, the price-to-food ratio is important; in fact, according to Technomic, 66 percent of restaurant guests say higher prices have changed their behavior and/or loyalty. But quality – not just quantity – matters, too. In order to keep operations on-trend and buzz-worthy, especially in the face of rising food costs, operators must get creative to deliver on their needs.

From “Great Price” to “Great Experience”

Only about 50 percent of consumers in each major foodservice segment – QSR, fine dining and fast-casual – are “highly satisfied” with the value they receive. Patrons want more than a food transaction making the new value equation include factors beyond price. They consider factors that deliver:

  • Distinctive taste and quality of foods and beverages
  • Unique, premium ingredients – especially locally sourced fare
  • Signature dishes – standout LTOs that they can’t find anywhere else
  • Build-your-own meals – the ultimate in personalization
  • Sharable dishes that bring everyone in on the fun – 46% of Millennials want small plates or ethnic street food, driving an 80% increase in small-plate menu options since 2013.

 

Looking for more foodservice inspiration? Visit http://burgercravings.com/Blog/LTO to get inspired or contact your local Cargill representative.

*Technomic Menu Monitor