Evolving Food & Beverages Trends in Foodservice - Prepared for
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Evolving Food & Beverages Trends in Foodservice Prepared for November 22, 2018
North American Food & Beverage Trends Gen Z: Driving Next Level Trends Forward 1. Snacking 2. Flavour 3. Health 4. Local/Sustainable 5. “Glocal” Dining 6. Fun What’s Coming in 2019 3 trends to watch
Change is HERE!
✓ Disruptors in the next 5 years:
✓ Tech-fueled competition
✓ Increasing rate of change for
preferences and tastes
✓ Snacking
✓ Flavour
✓ Health
✓ Ethnic
✓ Indulgence
✓ Government
✓ US, Federal, Provincial,
Municipal
© 2018 Technomic Inc.
The Next Consumer Wave:
Gen Z
Born Age
1993-2003 15-25
Diverse
Entrepreneurial
Individualistic
Connected since Birth
© 2018 Technomic Inc. 4
What, Where and
When They Want It
Convenience
Customization
On-Demand Experiences
© 2018 Technomic Inc. 5
Impact of
‘Anytime, Anywhere’ Key Players 2017 Y/Y %
Canada Change
Sales
● Third-party delivery rapidly changing Largest
customer expectations Tim Hortons $5.5B* 3.8%
McDonald’s $3.7B* 4.4%
Starbucks $1.8B* 6.4%
Subway $1.4B* -2.1%
A&W $1.2B* 4.5%
Fastest-growing
Freshii $107MM* 60.0%
Chipotle Mexican
$43MM* 48.1%
Grill
The Chopped Leaf $49MM* 46.0%
The Burger’s Priest $19MM* 45.0%
Quesada Burritos &
$40MM* 37.6%
© 2018 Technomic Inc.
Tacos 6
No signs of slowing down
Leading players have continued to expand services across Canada
Just Eat acquires
Orderit.ca
DoorDash expands
DoorDash enters Toronto to Calgary
Just Eat acquires & Vancouver
YummyWeb & Grub UberEats expands
Canada UberEats enters Toronto to Vancouver
2011 2015 2017
2009 2013 2016 2018
Just Eat Skip the Just Eat acquires Uber Eats enters
enters Dishes Skip the Dishes Ontario
Canada launches
*UberFRESH rebranded to UberEats in 2015
© 2018 Technomic Inc. 7
Snacking © 2018 Technomic Inc. 8
Percent of
consumers
who snack at
80%
globally 75%
least daily Gen Z 89%
+6ppts since 2016
© 2018 Technomic Inc. 9
Next-Level Fries
27% Herb/Seasoned fries at
47%
+ Top 200 chains since 2016
Of consumers
purchase fries as
snacks at least
occasionally
53% of Gen Zers
© 2018 Technomic Inc. 10Amped Up Veggie Snacks
Cauliflower apps and sides have grown 21% since 2017
27%
Of consumers say
they’d purchase
healthful snacks
more often if there
were more unique
flavours
Montana’s BBQ & Bar 32% of Gen Zers
© 2018 Technomic Inc. 11Functional Snacks Consumers would purchase snacks that are… High in Protein (38%) Energizing (35%) High in Fibre (35%) © 2018 Technomic Inc. 12
Health © 2018 Technomic Inc. 13
5
Of your last 10
restaurant orders,
how many do you
consider healthy? globally 5.1
29%
Of consumers are
ordering healthier
items more now
Gen Z 41% than two years ago
© 2018 Technomic Inc. 14To Eat Healthier Away From
Home I Skip…
62%
53% 54% 51%
39% 42% 42%
38%
Dessert Adult Beverages Appetizers Nonalcohol
Beverages
Canada Global
© 2018 Technomic Inc. 15The New
5
Of your last 10
Health restaurant orders,
how many do you
consider healthy?
all global consumers 5.1
● Desire to “feel good”
about choices
● Deliver flavour and
health: Clean, natural,
fresh, local
© 2018 Technomic Inc. 16What’s healthy Perceived Healthfulness of
Functional Claims
now?
(Top two box = slightly & much more healthy)
High in antioxidants 78%
Consumers’ definition of
health is changing…
Containing probiotics 67%
Having other functional
61%
benefits
Aiding digestion 57%
Stress relieving 42%
© 2018 Technomic Inc. 17Superfoods
Mentions of “superfood” on menus
are up 11% year over year
Turmeric +37.1%
Hemp +17.6%
Ancient Grains +13.3%
Coconut Water +9.4%
Chia +7.7%
Matcha +7.6%
Quinoa +6.4%
Charcoal +4.5%
Kale +1.7%
Blenz Tumeric Latte
© 2018 Technomic Inc. 18Diversifying Kombucha
beverages, on tap
often with a
better-for-you
positioning
Additive-
free juice
Slurpee with real
cane sugar
© 2018 Technomic Inc. 19Importance of Local
“Restaurants should always source local ingredients”
67%
Canada
54
Global
% Promoting they serve
100% Canadian cheese
© 2018 Technomic Inc. 20Fast Fresh
Foods
Limited-Service Restaurant
● Fresh, Real Ingredients
● Healthy Fast Food
● Eco-Friendly
Commitment
● Source Supplies Locally 8
Units
Toronto
Locations
© 2018 Technomic Inc. 21B.Good
Limited-Service Restaurant
● Sustainable
● No Artificial
Preservatives, Antibiotics
Or Hormones
● Company-Bought Farm
● Better-For-You Food 5
Units
Toronto &
Oakville
Locations
© 2018 Technomic Inc. 22Global Tastes
s
© 2018 Technomic Inc. 2362%
Percent of consumers
purchasing ethnic
foods at least
once a month (Gen Z 77%)
59%
Of consumers are
eating more
unique types of
ethnic foods/
Gen Z 69% beverages now
than two years ago
© 2018 Technomic Inc. 24Global Flavours
Through Condiments Korean Fried Cauliflower
Mango Chutney (+50%)
Harissa (+33%)
Sambal (+13%)
Peri Peri (+9%)
Kimchee (+3%)
Moxie’s Grill & Bar
These new cauliflower bites are sauced in
gochujang and served with jalapeno lime
dip
© 2018 Technomic Inc. 25Asian & Latin Street Foods
65%
Of consumers
would order
ethnic items
described as
“street food”
Street Corn Pizza 70% of Gen Zers
Blaze Pizza
© 2018 Technomic Inc. 26Pho Hoa
Limited-Service Restaurant
● Globally Recognized
● Health-Conscious
● Vietnamese Comfort
Food
5
Units
British
Columbia
Locations
© 2018 Technomic Inc. 27Fun © 2018 Technomic Inc. 28
69%
“Visiting restaurants
is a form of
entertainment
for me.” globally 65%
24%
Of consumers find
desserts with an
interactive element
Gen Z 29% very appealing
© 2018 Technomic Inc. 29New/Unique
Options I'd like these restaurants to offer 23%
more menu items with
new/unique flavours 23%
If a restaurant I typically don't 21%
visit offers a unique LTO, I'd be
likely to visit to try it 27%
12% 20% of Gen Z
I like trying mashup dishes at
LSRs
20% 26% of Gen Z
2017 Canadian Flavour Consumer Trend Report
Fast food Fast casual
© 2018 Technomic Inc. 30Globally,
47%
call for more
Mashups mashups
Eye-Catching Limited
Time Offers (LTO’s)
38%
say LTOs can
drive traffic
© 2018 Technomic Inc. 31Mashups in Action
Waffle Double Down Croaburger Vulcano Pizza
KFC (Canada) Croasonho (Brazil) TelePizza (Colombia)
An out-there sandwich with Two Big new offering features a beef patty, this returning special features
Crunch fillets, real Belgian waffle and bacon, cheddar cheese and onion dippable tortilla chips and nacho
maple aioli sauce rings on a rounded version of the sauce on a pizza topped with a
chain’s signature croissant choice of two additional ingredients
© 2018 Technomic Inc. 32Rolltation
Limited-Service Restaurant
● A Hybrid Food
Destination
● Customizable Sushi
Burritos
● Poke Bowls & Salads
4
Units
Toronto
Locations
© 2018 Technomic Inc. 33What to
Watch
in 2019
© 2018 Technomic Inc. 341.
After Effects of
Marijuana
Legalization
Wide-ranging yet unknown
impact of legal cannabis on
foodservice
Development of creative hemp-infused offerings
Potential for increased demand for midnight munchies and
home delivery services
Food industry employee legislation and rights
© 2018 Technomic Inc. 352. Demand for Alternative Proteins Non-animal proteins are gaining popularity as concerns around health, animal welfare and the environment rise along with continued global culinary tourism and influence © 2018 Technomic Inc. 36
Consumption vs. 2 Years Ago
Vegetarian
substitutes/options
42% 44% 14% Top reasons
Vegan
for eating more:
41% 42% 17%
substitutes/options
61%
Chicken 33% 58% 8% Trying to eat healthier &
getting proteins from
other sources like nuts,
Seafood 29% 58% 13% whole grains, etc.
Turkey 24% 60% 16% 60%
Vegetarian options are
Pork 16% 60% 24% healthier
Beef 15% 55% 29%
45%
Greater variety available
More Same amount Fewer
Base: Varies by consumers who eat these proteins (consumption vs. 2 years ago), 98 (vegetarian) & 43 (vegan) who are eating these options more often
Q: Compared to two years ago, would you say that more, fewer or the same amount of the meals you eat include the following?
Q: Why are you eating more meals with vegetarian and/or vegan substitutes? Select all.
Source: Technomic’s 2017 Canadian Centre of the Plate Consumer Trend Report
© 2018 Technomic Inc. 37Looking Ahead Edible bugs
Cookie Martinez in
Toronto: Patacones
topped with
grasshoppers and
hormigas culonas
(leafcutter ants)
Non-beef imitation
meats
Westcoast Poke in
Vancouver: First
restaurant in Canada
to carry Ahimi, raw
ahi without the tuna
(vegan tuna)
© 2018 Technomic Inc. 383. Sustainability 2.0 in Foodservice Environmentally friendly and multifunctional packaging Transparency Food Waste Local Sourcing Living Wages Community Engagement © 2018 Technomic Inc. 39
Sustainability on Changes Total
the Rise, But… To the menu/selection of items 70%
In how we communicate with our
53%
customer
Minimal In what we demand of suppliers 50%
12%
Have you made In what we demand of distributors 49%
changes to your
business model or Yes
60% In our sourcing practices 46%
practice in the past
two years based on
To pricing 24%
sustainability
No
initiatives?
27% In employee benefits 23%
In employee recruiting 18%
© 2018 Technomic Inc.
Technomic 2018 Canadian Operator Research 40…Proving to be Obstacle Total
a Challenge Higher costs 63%
What are your biggest obstacles to achieving
your sustainability goals? Lack of financial resources 32%
Lack of time/personal resources 29%
Product availability 24%
Limits supplier selection 18%
Inability to measure impact of efforts 15%
Lack of customer interest 14%
© 2018 Technomic Inc. 41Final Thoughts
More intense Will need to
competition exhibit greater
coming faster creativity,
innovate
Consumer
expectations Look and
grow & shift Listen, and
Adapt to ever
Ethnic, Fun changing
Health, Global, consumer needs
& Transparent
the greatest
drivers
© 2018 Technomic Inc. 42Thank You!
Margot Swindall
mswindall@technomic.com
416-809-0619
© 2018 Technomic Inc. 43You can also read
