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Opportunities and Challenges in Today's Beverage World

4/1/2022

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We are excited that Tony Tahmosh, CSW has joined Matrix Restaurant Consulting. I recently asked Tony to outline the opportunities and challenges operators will face in 2022 as they look at their beverage programs, specifically the future of wine sales and how to react to consumer shifts in wine consumption. Here's what Tony said....

State of the Beverage Industry
Consumer Beverage Spend in the U.S. increased by almost 2% in 2021, and is currently valued at $146 billion.  Although wine consumption continues to decrease, the U.S. Beverage Industry is projected to continue to grow at an average rate of 1.7% through the end of 2026.
Here are some challenges and opportunities in today’s beverage world.

Some of the challenges operators are facing today....
  • The importance of wine as a viable sales channel will likely continue to decline in the restaurant industry due to overpricing on the menu and consumers placing a higher value on other alcoholic beverages. And because of the ‘dine at home’ trend, a result of the COVID pandemic, consumers have become more educated regarding the retail prices of wines. Restaurants may find that wine is not in demand at these higher prices and thus questioning the cost to maintain deep stocks of wine. 
  • With movements like mindful drinking and “sober curious” gaining popularity, research indicates that alcohol consumption has declined in the U.S., with younger generations drinking less as they show greater interest in holistic wellness and health. This trend is expected to continue at least through the end of the decade.
  • The challenge of recruiting younger, health-conscious, multicultural consumers into the wine category, combined with the aging of the older core wine consumer, remains. These consumer groups have different values and spending patterns. The wine industry has done little to alter their marketing message to attract or retain either consumer cohort. 

Opportunities for Operators to Increase overall Beverage Sales
  • “Better-for-you” beverages, featuring clean labels, natural ingredients, less sugar, fewer calories, and caffeine alternatives are on the rise. Products with these qualities have been in high demand, as the pandemic only heightened people’s focus on wellness, immunity and stress reduction. The next wave of “better-for-you” drinks spotlight ingredients that have perceived health benefits such as superfoods, probiotics, prebiotics, antioxidants, vitamins, minerals, botanicals, and protein. This trend is impacting every beverage category, particularly tea and kombucha, energy and sports drinks, and bottled water.
  • CBD is another ingredient to watch. Although the FDA has not approved the use of CBD in foods and beverages sold in interstate commerce, some marketers are bringing products to market. Molson Coors recently introduced Verywell, a line of sparkling waters with hemp-derived CBD and adaptogens, through a subsidiary. The drink is currently only available in Colorado.
  • Many wineries are prospering by focusing on premiumization. Their customers have been trading up for years, paying more for better quality. 75% of the wine sold in the U.S. costs less than $10 a bottle retail, and those wines are suffering from shrinking sales, sometimes by more than 10 percent a year. Younger consumers are interested in luxury products, at least ones they can afford. While COVID continued to accelerate premiumization, and while total volumes of wine sold are dropping, wines in the premium segment increased the volume sold at higher prices in 2021, and this trend is expected to continue for several years.
  • Celebrity beverage endorsements are nothing new. Think George Clooney and Nespresso, Jennifer Aniston and Smart Water, or countless sporting stars endorsing energy drinks. But expect to see more and more vineyards and champagne houses partnering with big names to capitalize on their glamorous images and extend their respective brand portfolios. After John Legend or Brad Pitt, Cameron Diaz is the latest celebrity to venture into the wine business with her “clean” wines. The range comprises of an organic and vegan French rosé and Spanish white with no added sugar, with Diaz tapping into both the wellness trend and that of the growing thirst for ‘pink wine’.
The hospitality industry continues to evolve and shift at a rapid rate and Matrix Restaurant Consulting is here to help you navigate through the ever changing beverage world.

#Beverages #BeverageTrends2022 #wine #RestaurantTrends #Restaurants2022 #CBDFoodProducts #CBD
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The Future of Food Service: 2021 - Part 1:

7/28/2021

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​As we come out of the pandemic, consumers are returning to some sort of normalcy. But with COVID variants exploding, costs rising, product shortages and a shrinking labor pool, the Food Service industry will be forever changed. We can no longer run our businesses as we have in the past, as we continue to see uncertain times, and the resulting changes in consumer behavior. So who will succeed in the future? It will be the food service operator that evolves with speed and innovation and it will be the food service operator that really understands the impact of these times on consumer behaviors, not just following the current fad or trend.
 
In my January 6, 2020 blog, I made some predictions for 2020 and I feel many of these predictions will hold true for the future. As I look across the industry, we will see a continued trend towards healthy and sustainable eating, and diet-friendly menu options; we will continue to see an innovation in technology – from digital marketing and loyalty programs, to strengthening the e-commerce proposition, to cyber-security to contactless technology; we will see necessary changes in the delivery model; we will see Social Justice - beyond the buzzwords; and we will continue to see new food trends and renewed interest in classic stables - Italian, Mexican and Chinese, with a focus on regional specialties. In this blog, I am going to focus on the continued trend towards healthy and sustainable eating, and diet-friendly menu options.
  • Today we are seeing the growing effects of global warming on the planet, and this continues to raise concerns as to the impact of our business on the environment. Gen Z and millennial consumers are driving change as they reinforce the importance of corporate social responsibility, sustainability and the environment. For the food-service operator this means:
    • Menus need to feature responsibly sourced and certified ingredients. By sourcing the products and ingredients, we expand our ability to foster change and reduce our impact on the planet. Consumers are also keenly focused on what they are putting in their bodies and they searching out products made with non-GMO ingredients.
    • Food Service establishments need to focus on minimizing their environmental impact by reducing water usage; investing in energy-efficient equipment; buying local and reducing deliveries; using eco-friendly disposables; minimizing food waste; designing restaurants with insulated windows and furniture that is made from renewable materials; and by choosing eco-friendly cleaning products.
  • The flexitarian is here to stay, leading to the need for more plant-based menu options. Over 40% of global consumers call themselves flexitarians or part-time vegetarians.1 And with protein prices spiking, this is an opportune time to evolve your menu into a more plant-based menu. Menus need accommodate not only flexitarians with vegan or vegetarian options, but they also need to have other diet-friendly options such as keto to be more relevant with today’s consumers.
  • With the outbreak of COVID-19, we are realizing more than ever the importance of health and nutrition on our bodies and there is a new focus on the impact of inflammation on our bodies and the benefits of immunity-boosting ingredients. Menu items that focus on antioxidants, vitamins and minerals, will play an important role for food service operators.
  • With new COVID variants spreading rapidly, resulting in a renewed look at mask mandates and with the growth in more active lifestyles, outdoor dining options will continue to be important to the success of food-service establishments.
 
In this post-pandemic era, there is pent up demand to dine out, but consumers are still cautious, and we will not see pre-pandemic sales and traffic for a long time. As a result, food-service operations need to continue to evolve and change in order to be successful.
 
#2021FoodTrends #2021RestaurantTrends #RestaurantTrends #Restaurants #FoodService

1 Cherryh Cansler, ‘Bold and light: Post-pandemic menu trends revealed’, Fast Casual, May 10, 2021, https://www.fastcasual.com/blogs/bold-and-light-post-pandemic-menu-trends-revealed/
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The Impact of COVID-19 on Society

3/30/2020

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The economic and human toll COVID-19 has caused is devastating. As a society, we have resolve and will rebound from this devastating situation. As we look into the future, how will this impact how we live? Will our spending habits change? Will our social engagement improve? Will we cook more at home or dine out more? Some of my initial thoughts . . .
- We will see a baby boom in 9-10 months. After all, you can only play Monopoly so many times, you can only post so many times on Instagram and Facebook and you can only clean your cabinets so many times, so what is left to do. . . .
- People will be spend less on non-essentials and thrift store shopping will increase. So many of my friends and colleagues have mentioned that they are using this time to clean and purge. Many have also commented on finding clothes and other items with their price tags sill on them. Two things will come out this - we will spend less, thinking about all the unused, new items we have and people will find value in going to the thrift store finding these "new" items with the price tag still on them.
- People will be uber vigilant on health and sanitation. The days of getting a "B" or less on your health department inspection and staying in business will be gone. And the restaurants that understand that contactless is not a fad, but the future will succeed. It could be as simple as a contactless bathroom - from entering to leaving, you touch nothing. 
- Restaurants will have to adapt their model as people will continue to cook at home and dine out less. Is the Grocerant the wave of the future? 

How do you see this shaping our future?

#2020Trends #2020RestaurantTrends #COVID19Restaurants #Restaurants #Trends 
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Predictions for 2020

1/6/2020

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As we enter a new decade, industry experts and chefs have predicted so many trends for 2020. Here are a few trends that I predict for 2020.
Health & Fitness - 2020 will be a year we focus on food as an integral part of our lifestyle. There will be an emphasis on not only healthy food, but food that nourishes the mind and soul.
Our Impact on the Environment - our planet is in distress, and I foresee restauranteurs and chefs taking notice. As an industry we will continue to look for alternatives to plastics and polystyrenes and to sourcing food locally from producers who understand their impact on the environment and society. However in 2020 - we will see bigger changes - an industry that reduces waste significantly, an industry that reduces its consumption of energy and water, and an industry that looks at every product they are using and the impact these products have on the environment.
Vegetables and more Vegetables - menus will be more plant-based, with a greater use of vegetables and a focus on the connection between our food and the impact on our body, mind and soul.
More Conversation at the Table - restaurants will offer more communal tables and offer family-style offerings - thus encouraging interaction and conversation at the table.
"Dry 2020" - the "dry" trend will carry beyond January. Restauranteurs and bartenders will focus on more "dry" spirits - creating amazing "cocktails" that can be enjoyed all day. (And hopefully create a better name than "Mocktails!")
What trends to you predict for restaurants in 2020?
#2020FoodTrends #2020RestaurantTrends #PlantBasedFoods #Vegetables #sustainability #DryJanuary #Communal #HealthAndFitness
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What Gen Z restaurant consumers want

5/22/2017

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Gen Z is on the cusp of being our industry's major consumer with about 80 million members. According to a recent NRA Show panel, this generation will demand the non-negotiables:
     - Good value and quality from restaurants, like the food found in fast casual.
     - They also want inviting service and a welcoming ambience that makes them feel valued.
     - They demand cleanliness and the highest standards of food safety.

Understanding Gen Z and how to approach their needs, will be critical for restaurants to succeed in the coming decades. Are you prepared for Gen Z? If not, let Matrix Restaurant Consulting assist you in preparing for the next generation.

For more on Gen Z, check out this article in Nation's Restaurant News.
​What Gen Z Restaurant Consumers Want
Gen Z Diagram
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US wins gold at Bocuse d’Or for first time

1/26/2017

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Congratulations to Mathew Peters and Harrison Turone of Per Se for their victory!

The United States has won the Bocuse d’Or cooking competition for the first time. The prestigious biennial competition in Lyon, France, pits teams of two chefs against each other in a five-and-half-hour cooking competition. This year, Mathew Peters, executive sous chef at Per Se in New York City, and his commis, or assistant, Harrison Turone, who also works for Per Se, took top honors. This is the second time in the 30-year-old competition that Team USA has even mounted the podium in the contest. In 2015, the last time the Bocuse d’Or took place, Team USA, represented by Phillip Tessier and Skylar Stover of Per Se’s Yountville, Calif., sister restaurant The French Laundry, took the silver. Before then, the highest the U.S. had placed was sixth.

I competed twice in the US Preliminary Competition, but never made it to France. It is one of the most intense cooking competitions that anyone can compete it.
2017 Bocuse D'Or Winners on Stage
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​People Report: Recruiting will remain difficult into 2016 Q4

11/7/2016

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People report recently announced their Fourth quarter Workforce Index, and our industry will continue to face challenges in finding quality job candidates and will continue to tax restaurant operators into the last quarter of the year. It will be an especially difficult time as operators also face the pressures of decreased guest counts. It is a vicious downward cycle that will continue to result in restaurant closures.

So how can operators succeed in such a challenging environment?
  • Slow your growth: Now, more than ever, is the time to slow growth. And at a minimum, growth needs to be manageable, ensuring you can properly staff and manage your new operations.
  • Get back to the basics: This is a concept that Joe Lee, the former Darden executive, constantly preached. Far too often we are looking for the proverbial silver bullet - that gimmick or initiative that will suddenly bring in customers. But it doesn't need to be that complicated - focus on well executed products and invest in your management and hourly staffs. Look at your business as a marathon and not a sprint.
Matrix Restaurant Consulting can help you get back to the basics and to become that employer of choice.

For more information, here is the link to the People Report Article: 2016 Q4 Workforce Index


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Casual dining fights for survival

8/29/2016

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As 2016 has been a challenging year for all sectors in the restaurant industry, casual dining continues to fight for survival. According to Knapp Track, casual dining traffic has declined on average 3-percent a year since 2008. I do think there is a need for casual dining restaurants, but I also have said for years - the industry needs to make some dramatic changes in order to survive. For brands to survive in the future - they must find ways to attract younger customers, they need to become "un-chains", they need to find ways to become locally relevant, and they need to invest in the basics - their people and their product. At Matrix Restaurant Consulting, we are here as a resource to re-energize your brand and to help up and coming brands survive in the future. Let's get started today! Contact Us.

For more on the issues casual dining is facing, check out this article: Casual Dining Fights for Survival
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African Food Takes the slow road to trendiness

8/10/2016

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I recently returned from Kenya and Tanzania and I am not surprised but the recent article from Nation's Restaurant News. Kenya offers such diverse foods - the coast offers the flavors of India and the spice trade, the central province is rich with produce - specifically Cabbage, Potatoes and Carrots, and Maize is a key staple throughout the country. It is wonderful to see the vibrant and unique flavors becoming more mainstream. While I was in Kenya, I spent time in the kitchen of an orphanage where I volunteer. While I was there, I made Sukuma Wiki - a dish made from greens (Kale, Spinach, etc) and other vegetables such as carrots. Sukuma Wiki literally translates to "push the week" or "stretch the week" - as the family would make this to stretch their food budget. I also made my version of Lentil Stew - where I seasoned it with onion, garlic, oregano and curry powder - and Ugali - a starchy side dish made from Maize meal.

To read more about this trend: African Food Takes the Slow Road to Trendiness

Sukuma Wiki
Sukuma Wiki
Lentil Stew
Lentil Stew
African Cooking Stove
Our stove used to cook Ugali - a traditional stable in Kenya.
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Kids' meals leap beyond child’s play

6/17/2016

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I was recently in Los Angeles and had dinner with my family at one of my favorite sushi restaurants, The Izaka-ya by Katsu-Ya West Hollywood, and I was amazed at the number of families in the restaurant. Almost all of the tables had young children eating sushi! It's not surprising that children are becoming more sophisticated in their eating habits and as a result your restaurant's Kid's Menu should reflect this shift in taste. Additionally, with the issues we are facing with child obesity, parents are looking for healthier options for their children. The Matrix Restaurant Consultants have extensive experience in developing great Kid's Menus and building brand advocates at an early age.

Here's a great article on what some restaurant companies are doing to overhaul and improve their Kid's Menus.
Kids' meals leap beyond child’s play
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