Food Business News - February 2, 2021 - 12

2020 as a result of the pandemic.
" These constrained consumers are
experiencing a pretty dramatic shift in
economic circumstances because of the
pandemic and are behaving in specific
ways as a result of that, " Ms. Buchanan
said. " The second group, insulated consumers, have been less impacted from an
economic perspective. "
Constrained consumers are minimizing stockpiling and prioritizing necessities, forcing limitations on basket choices.
Their online engagement largely is fueled
by the need to shop around to discover the best deals and prices. Insulated

consumers, by contrast, have become
more accustomed to purchasing larger
and broader stocks of essential products.
With fewer out-of-home outlets, these
shoppers are exploring online platforms
and experimenting with new products.
" It is likely that we are going to be
living in this divergent reality of constraint versus insulated consumers for
some time, " Ms. Buchanan said. " There
also are more macro implications of the
societal impact of these two divergent
realities. Think about some of the behavioral changes that people have undertaken out of necessity in 2020. These are

Restaurants adapt for
post-pandemic success

all going to have big implications on the
industry and the products that will win
going forward. "
As the pandemic wanes consumers
will return to grocery stores. They also will
continue shopping online.
" Consumers are shopping and buying
now in a mixed reality where increasingly
their expectations will be the same online
and offline regardless of the environment, " she said. " The work now is to
understand the trips and baskets that are
most profitable in an omni context, understand shopper's alternatives and activate
the right kinds of trips and baskets. " FBN

The ability to add
alcoholic beverages to
off-premises orders has
been a lifeline for fullservice restaurants.

©AKE1150 - STOCK.ADOBE.COM

ON THE BORDER

KANSAS CITY - Restaurants in at least 10
states remain closed for indoor dining, and
curfews and capacity restrictions remain
in effect in more than 30 others. Those regulations have a direct impact on restaurant
sales, according to data from Sysco.
" If a restriction goes in place and
changes restaurant dining capacity to a
more restrictive number, we see an immediate change in the data, " said Neil Russell,
vice president of corporate affairs at Sysco
Corp., during a Jan. 15 webinar hosted by
the Center for Food Integrity.
Restrictions are likely to remain in
place for months, even as the coronavirus
(COVID-19) vaccine begins rolling out
across the country. The result is that more
than 500,000 restaurants remain in economic freefall, said Hudson Riehle, senior
vice president of research at the National
Restaurant Association.
" I think it's important to look at 2021
as a year of transition for the restaurant industry, and because the amount of the loss
is so substantial, there's no way in a single

12

Food Business News

year that it can be regained, " he said.
Investments in off-premises capabilities will continue in 2021, Mr. Riehle
predicted. This is especially true for
full-service restaurants, which have had to
invest more heavily to build delivery and
takeout services during the pandemic.
Restaurants across segments have
simplified menus to meet the surge in
off-premises orders. Full-service restaurants were most likely to streamline
menus, with 63% of fine dining restaurants and 53% of casual dining restaurants
offering fewer menu items in 2020, compared to 35% of quick-service restaurants.
The ability to add alcoholic beverages
to off-premises orders has been a lifeline
for full-service restaurants.
" Over half of millennials say it's more
likely for them to choose a restaurant
based on that option of having alcohol
available, " Mr. Riehle said. " There's certain
municipalities and areas that will allow
this to continue in the post-pandemic
environment. "
Full-service restaurants also have
upgraded their takeout and delivery packaging to preserve product integrity, while
restaurants across segments have found
new ways to repurpose shared dishes for
individual consumption.
" You're seeing a big demand and increase for single-serve type packaging and
single-serve type products, " Mr. Russell
said. " It provides not only safety during
the pandemic, but convenience. People
are becoming accustomed to that; they

like the individual choice. "
Going forward, restaurant operators
will need to balance increased demand for
single-serve items in off-premises orders
with sustainability concerns.
" The communication point is almost
more important than actually doing it, "
Mr. Riehle said. " The greater emphasis on
off-premises has turned a spotlight on the inadequacy of certain packaging and delivery
concepts in terms of the containers, and the
re-engineering of these is already underway.
There's little doubt that several years from
now, the availability of the typical restaurant
operator to have sustainable packaging and
eco-friendly practices on the off-premises
market will definitely be enhanced. "
While investments in digital technologies to support off-premises capabilities
will be critical going forward, restaurants
can expect consumers to return to dining
rooms in the future.
" The pent-up demand for restaurant
services remains quite elevated, " Mr. Riehle said. " This is basically consumers saying
they're not using restaurants as much as
they would like in their daily lifestyle. "
Sysco found restaurant sales improve
almost immediately once local restrictions
are rolled back.
" When a restriction in a local area
changes and improves, there are people who have been waiting to celebrate
those anniversaries, birthdays and other
events, " Mr. Russell said. " We see the data
improve dramatically as soon as those
restrictions are eased. " FBN
February 2, 2021


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Food Business News - February 2, 2021

Table of Contents for the Digital Edition of Food Business News - February 2, 2021

Food Business News - February 2, 2021 - 1
Food Business News - February 2, 2021 - 1
Food Business News - February 2, 2021 - 2
Food Business News - February 2, 2021 - 3
Food Business News - February 2, 2021 - 4
Food Business News - February 2, 2021 - 5
Food Business News - February 2, 2021 - 6
Food Business News - February 2, 2021 - 7
Food Business News - February 2, 2021 - 8
Food Business News - February 2, 2021 - 9
Food Business News - February 2, 2021 - 10
Food Business News - February 2, 2021 - 11
Food Business News - February 2, 2021 - 12
Food Business News - February 2, 2021 - 13
Food Business News - February 2, 2021 - 14
Food Business News - February 2, 2021 - 15
Food Business News - February 2, 2021 - 16
Food Business News - February 2, 2021 - 17
Food Business News - February 2, 2021 - 18
Food Business News - February 2, 2021 - 19
Food Business News - February 2, 2021 - 20
Food Business News - February 2, 2021 - 21
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Food Business News - February 2, 2021 - 23
Food Business News - February 2, 2021 - 24
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Food Business News - February 2, 2021 - 54
Food Business News - February 2, 2021 - 55
Food Business News - February 2, 2021 - 56
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