6 New Restaurant Trends to Look Out for in 2021
In 2021, restaurant trends will continue to shift to what we’ve been witnessing as of late. Managing the new wave of delivery methods, virtual brands, and menu sizes will be a challenging pivot, but one that must be fully embraced if brands wish to survive this year and beyond.
It’s generally agreed that 2020 expedited the inevitable. Tech adoption is the general trend and the over saturation of the market is lowering. In fact, more than 110,000 restaurants closed permanently in 2020, according to the National Restaurant Association.
From Restaurant Dive, “Digital technology is really what’s going to drive value creation going forward,” Lauren Silberman, senior analyst at Credit Suisse, said. “It’s really the combination of consumer-facing technology with … curbside, drive-thru, delivery, and also plays into the real estate and labor piece as well, because it’s all interrelated. What you’re seeing is this permeation of a holistic digital infrastructure.”
So let’s dive into what we believe will be the 6 new restaurant trends in 2021.
1. Delivery and pick-up will continue to rise, but not without its challenges.
There’s been a big uproar about third party delivery apps. In several states, we’ve seen laws go into effect that cap the delivery fees, and earlier this month, we saw a law go into effect in California stating that these apps can no longer list restaurants that aren’t in direct partnership with them.
We might even see an uptick in white label partnerships. Shake Shack tested a delivery partnership with Uber Eats in 3 of its Miami locations. For those companies that have deep enough pockets to fund their own apps, this makes the most sense as they are the gatekeepers of their own data.
But smaller businesses may not have the means necessary to fund the development of their own app. Thus, they will have to figure out clever and creative ways to draw in their customers for pick-up orders.
2. We’ll see an increase in drive-thrus and curbside pick-ups.
We’re already seeing companies begin to invest in drive-thrus. Del Taco recently revealed its new location which offers third-party delivery pick-up areas, double drive-thru lanes for mobile pick-up orders and delivery driver pickups, and dedicated parking lot areas for customers who want to dine in their automobiles.
At the end of 2020, El Pollo Loco also announced a new location in California that offers drive-thru.
Sweetgreens also announced that it will be opening up a drive-thru location in Highlands Ranch, Colorado. Leading us to our next point…
3. More restaurants will open suburban locations.
With a flood of city slickers moving to the suburbs, and possibly no signs of relocating to the city since a handful of large companies announced indefinite work from home statuses, we can only predict that the food will follow.
4. Menus will shrink and will double down on the best selling items as well as the items that turn the most profit.
Another trend we’re likely to see is the continuation of narrowing down menu options and focusing on the items that sell the best or turn the most profit. By eliminating an abundance of choice to the consumers, it allows the kitchen and operations to run smoother and quicker.
5. A bigger focus will be made on packaging and customer service.
We (obviously) don’t believe that the trend of delivery and pick-up will die down anytime soon. Not only because the pandemic and quarantine might certainly continue to last throughout 2021, but customers will want to continue to enjoy the convenience of having food delivered to their home, or without much human interaction.
With that, a shift in prioritizing and investing in packaging as well as customer service will be key.
Packaging that not only looks enticing but also keeps the food as fresh as possible will be important.
Figuring out how to deliver high quality customer service, even through the throes of delivery, will be vital in ensuring a truly unbeatable experience.
6. Ghost kitchens, or virtual concepts, will expand.
Ghost kitchens are already beginning to saturate the market. Reef Technology raised $700 million at the end of last year. So, some investors are betting the big bucks that this will be the next wave.
We think so too. There’s a low barrier to entry for food concepts to launch when typically it takes an enormous amount of capital and investors to open a brick and mortar.
The only issue?
Customer adoption. How will consumers view food from an unknown brand that comes out of a ghost kitchen? That’s the key issue that these ghost kitchens will have to deal with (and that we’ll definitely be covering soon).
