3 Post-COVID Trends for Convenience Foodservice Operators

June 2021

Savvy employers will implement grab-and-go outlets to accommodate hybrid work policies.

The foodservice industry weathered the storm over the past year as the COVID-19 pandemic dramatically reshaped the way Americans eat. While supply chain disruptions impacted stakeholders up and down the value stream, convenience foodservice operators were hit particularly hard due to the closure of offices and modified on-site dining in schools, hospitals, senior living communities and other facilities.

As the storm clouds clear, operators are anxious to get back to business. When schools reopen in the fall, employees will be returning to the workplace in numbers and foodservice demand is expected to increase. However, it won’t be an overnight return to normal. Several key industry trends are included below.

1. Grab-and-go to replace workplace cafeterias — A March 2021 Harvard Business School survey found that 81% of professionals either don’t want to go back to the office or would prefer a hybrid schedule going forward. In many cases, a cafeteria isn’t going to make financial sense for a business with fewer employees on-site, giving way to mini kitchens, pre-order meals, desk delivery and automated retail systems like high-tech vending and micro markets. A recent Vending Market Watch survey found that 86% of operators think micro markets could replace cafeterias. The challenge for employers will be to implement grab-and-go outlets in a cost-effective way while achieving the same quality and choice employees expect.

2. Social distancing technology — A wide variety of technologies have emerged to assist organizations in making workplaces safer as staff return post-pandemic. The rise of contactless payments has been a key feature this past year, while unattended retail concepts such as smart coolers, campus and restaurant kiosks, and mobile ordering are expected to gain popularity. When it comes to equipment, operators should order ahead for fall installations. Manufacturing and shipping continue to be strained, meaning that operators can expect delays for highly demanded micro market retail displays and other equipment.

3. Healthier options — Despite the difficulties of COVID-19, professionals who worked remotely in the past year not only excelled at work but developed healthy habits. The Harvard Business School survey found that 59% made health a priority during the pandemic, likely tied to more home cooking and an increased interest in eating healthfully to boost the immune system. Operators offering fresh, hot and cold menu items that accommodate various diets will fare well as we return to “business as usual”.

Tamarack Partners provides M&A advisory services to owners of lower middle market companies. For more information on this report or to speak with one of our transactional advisors about your company, Contact Us.

Previous
Previous

Strategic Buyers Continue to Drive HME Consolidation, PE Interest Grows

Next
Next

Zyga Technology, Inc. Has Been Acquired by RTI Surgical