These are the 6 most important themes in the European foodservice sector

International growth of food chains and the use of Artificial Intelligence in the kitchen are without a doubt two of the most important themes for the European foodservice market in the coming years, according to Katrin Wißmann. She is responsible for the program of the European Foodservice Summit, an event for European food professionals that will take place in Amsterdam in September this year. With Food Inspiration she shares the 6 most important foodservice themes, which will also be discussed during the event.

1. International growth

There is an international growth of food chains. Restaurant groups that take over catering businesses and food formulas expand across the border. After all, mass equals cash. But although a rapid scale-up and implementation of food concerns and restaurant groups abroad may seem attractive, it also brings many challenges in the areas of people, brands and strategy development. Consistent growth over many decades is the ambition of many chains, but is achieved by only a few.

Biggest food chains in Europe

Source: dfv media group, 2022

2. Investor insights

Depending on the growth phase of a company, there are different sources of capital available to grow the company. Private equity investors usually come on board when a brand has managed to reach a certain maturity and EBITDA (earnings before tax). In Europe, there are more and more private equity investors who invest in restaurant chains that want to grow internationally and further stimulate the success of the brand. Investments in start-ups, on the other hand, have been much less than before. The future of start-ups is more fickle than that of large chains, which is why investors are more cautious about investing their capital in uncertain financial times.

3. Data and Artificial Intelligence

While some companies are still hesitant about the use of data and technology, others are embracing the opportunities that technology and Artificial Intelligence offer in all areas of the business, both front and back-of-house. Utilizing the data that companies can collect using such technological tools, has become the key to success for some foodservice parties.

4. Dynamic pricing

Although the strategy of charging different prices at different times is widely used in hotels, at gas stations and among airlines, it is still relatively new in the restaurant sector. During quiet periods, restaurants lower their prices according to this principle, so that they can attract extra guests at off-peak times. Not only are the prices dynamic, the menus often change as well. Will such a dynamic menu change become the standard in the restaurant sector in the future? According to Katrin Wißmann, the program manager of the European Foodservice Summit, it is. Wißmann: "It is a smart way to optimize your turnover."

Three-star restaurant Alinea in Chicago was one of the first restaurants worldwide to experiment with dynamic prices. Since 2011, the restaurant has offered guests the opportunity to receive a discount through its online reservation system if guests reserve a table during quieter times of the week. In 2017, the former Spingaren in Amsterdam claimed to be the first restaurant in Europe to work according to this same principle of flexible pricing strategy. The further in advance you book and the earlier in the evening, the higher the discount.

5. The battle for stomach share

The battle between foodservice and foodretail is timeless. After all, the consumer can only spend their money and fill their stomach once. Do they do that at home – with products from the supermarket – or outside, in the out-of-home sector? The middle ground is blurring, where foodretail takes over elements of foodservice, and vice versa. Supermarkets are trying to attract more new customer and gain a stronger position in the foodservice market using an attractive food service offering. The range of takeaway and on the go products in foodretail is therefore increasing. At the same time, foodservice is trying to respond to the growing demand from the convenience generations. Ease, speed and convenience are becoming increasingly important for foodservice companies.

6. Leadership

Leaders in the food industry today face a variety of challenges, including purchasing, financial issues and personnel issues. Diversity is also an important social issue. 30% of employees say they have resigned because their employer failed to counter major social developments, such as inequality. Half of employees are currently considering resigning for this reason, according to the Net Positive Employee Barometer.

In terms of leadership, ‘honesty’ is an important value today. From a leadership perspective, this means being honest about the obstacles you face and admitting mistakes that have been made in difficult situations. It may take some effort to admit that you are wrong as a leader, but it often earns you a lot of respect in the end.

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European Foodservice Summit

The 25th European Foodservice Summit takes place on 18 and 19 September in Amsterdam. Visitors will be food executives from European countries. Speakers include José Cil, former CEO of the American restaurant group Restaurant Brands International, and Paula MacKenzie, CEO of Pizza Express. The Summit is organised by dfv media group, an independent media platform based in Frankfurt.