By Naji Haddad, Middle East General Manager at Deliverect
The food and beverage industry is at a crossroads in terms of development and digitalization, with delivery becoming increasingly important for long-term survival. The food delivery industry has exploded in popularity over the last year. We saw this in action when we worked with Deliverect last year, assisting in the processing of more than 1.5 million orders each week, a 750 percent increase over the previous year.
Even more astounding is the fact that the worldwide online meal delivery market was worth $7 billion in 2020 and is expected to grow to $126.91 billion by 2021. Given that the market is predicted to reach $192.16 billion by 2025, it’s safe to assume that online meal delivery is only getting started and will continue to expand.
Restaurants are scrambling to adapt to the ‘new normal,’ which includes a slew of new ordering and delivery alternatives. Restaurant operators are seeking for easier ways to sell and reach out to more people with less effort. In order to thrive in the internet space and efficiently manage and expand company, restaurateurs need a solutions-based approach to help their restaurants digitise, simplify, and manage their sales in an ever-changing external context.
Here are some of the food and beverage trends that will dominate the hospitality industry in 2022:
Restaurants have had to rely on external sources for consumer insights (e.g. 3rd party marketers, societal trends), but in 2022, they will take more control, using their own direct channels to sell online and dispatch (e.g. use of omni-channel technology, such as online app ordering, to track and observe delivery order records) to gain a better understanding of their customers’ preferences.
Restaurants will not only sell more through their own delivery channels, but they may also oversee the delivery themselves using dispatch services. As a result, customers will have a more connected experience, which will satisfy their desire for customisation while also increasing income for businesses.
Much of the restaurant sector has invested in in-store technology and will continue to do so. To reduce consumer touch with restaurant employees, several have opted for contactless payment solutions such as QR codes and/or tableside ordering technologies. To make diners more comfortable when sharing space with a throng, operators are also experimenting with cutting-edge air filtration and surface cleaning technologies. For restaurant food delivery, smartertech with artificial intelligence, such as robots, will be deployed.
The food waste crisis is exacerbated by inefficiency in the distribution process. Deliverect helps restaurants reduce order errors by nearly 80%, resulting in less food waste (as well as less lost revenue on refunds for our customers). In addition, we provide all partners with sustainable supplier resources to assist them on their journey. Restaurants and food delivery channels are introducing more environmentally friendly packaging, and this will remain a top emphasis in 2022.
Many open opportunities exist throughout the region, as hospitality companies compete for employees with merchants and delivery companies. Covid has been a major contributor to the industry’s labour shortage. Maintaining healthy retention levels of workers working in the hospitality business is currently and will unfortunately continue to be a struggle.
With the expanding number of unfilled hospitality employment vacancies, finding new employees will be a challenge. To overcome this, we recommend that restaurants implement robust recruitment/employee referral networks to ensure that vacancies are filled swiftly when needed.
Restaurants are under a lot of pressure to keep up with the growing demand for food delivery orders while also catering to and serving in-person diners. The restaurant of the future will have two entrances: one for in-person customers and one for riders to enter and pick up orders without disturbing the diners.
Like a fast-food drive-thru, meal delivery boxes will be collected from an exterior window. Riders will be able to pick up without having to physically enter the restaurants, as is the case with several fast-food businesses.
Starting today – and most certainly for many years to come – a determined attempt will be made to maximize profit in order to help the hotel industry and its contribution to the economy recover. More restaurants will implement review management into their business models in 2022, in order to closely monitor profit levels and determine the most effective ways to boost earnings (if levels are flagging).
Businesses must improve client retention and conversion rates in order to optimize and hence enhance profit levels. As a result, the frequency of promotions and discounts will rapidly increase throughout the year, not just at social calendar events.
Restaurants must make their brands stand out by keeping their websites and social media platforms up to date, as well as providing an easily accessible menu with tempting photographs and other elements.
To assist adapt for a contactless consumer experience, restaurants will continue to introduce digital menus accessible via WiFi or QR codes. Customers benefit from digital menus since they can order and pay for their meal on a tablet rather than depending on often overworked wait staff. Customers can also order directly from the table, rather than waiting for the wait staff to randomly check on them to inquire about refills.
Overall, the food and restaurant business will evolve in 2022, with a stronger emphasis on technology. Food delivery will also become a more important role in the sustainability of the food and beverage hospitality industry. Technology enables the sector to increase its reach while also providing a steady stream of cash. Consumer preferences have shifted throughout time, with a greater preference for convenience and eating at home, and businesses must adjust accordingly. In 2022 and beyond, may the hospitality business not only survive, but also prosper!
