Lumina Intelligence Q3 Food Strategy Forum
I was lucky enough to attend Lumina Intelligence’s most recent Food Strategy Forum with fellow bean Caitlin, to understand the latest insight and trends shaping the food and beverage sector.
The morning session was dedicated to understanding the market in the last quarter, what’s shifted within the industry, but also looking at the wider context of the world that we live in, the events, policies and circumstances shaping consumer behaviour and the impact that’s having on the foodservice industry. Dubbed ‘Value vs. Values: Mitigating Market Challenges’ each presentation helped build a comprehensive picture of the current market and how best to navigate it.
Our top take outs:
- Improved consumer confidence. Personal finances are under less strain than they have been for some time, with recent interest rate cuts a welcome relief to consumers and operators. With lower inflation there’s been a real boost to spending power, all of which has had a positive impact on the eating out market.
- Legislative changes. With the change in government, there could be positive news for the hospitality industry. The proposed Skills England bill should help with the skills gap, whilst the Planning & Infrastructure Act aims to support economic and business growth. With a chance of business rates being cut in the Autumn Budget, there’s hope on the horizon for foodservice operators.
- Interactive marketing is having a moment. Engaging consumers in a holistic way whether it’s via immersive marketing campaigns, unconventional partnerships, loyalty schemes or mobile apps, brands are leveraging digital tools for stronger engagement and diversifying formats to extend their reach.
- It’s been an eventful quarter. Fickle weather conditions have had a big impact on the eating out market, but thanks to a stellar summer of sport (Euros, Olympics) the topline picture looks the same. Dig a little deeper and category changes (with more young men in the market from a demographics perspective for example) help explain the overall outlook.
- Value is key. Value for money, rather than simply ‘cheap’ remains the number one most important priority for consumers. Whilst quality and health were somewhat deprioritised during the cost-of-living crisis (a common trait during time of economic hardship) they are slowly coming back, and operators are responding to consumer demand for quality with more premium ingredients returning to menus.
- Low-to-no remains an important offer. Well-known in the Gen Z category, consumers are cutting back on alcohol across all demographics and brands are responding to demand. The Devonshire recently became the first UK pub to serve Guinness 0.0% on draught.
The team at Lumina then took us through the latest menu trends and concepts to watch in the industry (for more on that, see Caitlin’s round-up here) before taking us on a fantastic food tour in the afternoon where we got to experience some of the latest restaurant openings and trending sites first hand (see or read more here)!
In the meantime, for help leveraging insight to create award-winning campaigns for your brand in foodservice, get in touch today!