Value For Money

Foodservice: Creating indulgent experiences and building trust

Introduction

The foodservice market continues to face challenging conditions. Although the industry is benefiting from consumers increasing their dependence on out-of-home venues for convenience and indulgence purposes, the cost-of-living crisis is still affecting spending in the foodservice channel. FMCG Gurus research shows that consumers visiting high street or takeaway outlets are looking for high quality produce. This includes affordability/value and a sense of occasion when choosing the location of purchase.

Indulgence-led foodservice experiences

Capturing consumer attention within the foodservice channel can be difficult. This is especially true at a time when consumers are exposed to more choice than ever before. This can be seen both on the high street and via direct-to-consumer delivery channels. Seven in ten global consumers surveyed stated that they are looking for products that excite them at a foodservice outlet. This highlights the importance of offering a memorable experience which could encourage consumers to trade-up. Consumers are most interested in indulgent and hedonistic experiences. This aligns with the larger trend of people turning to food and drink for escapism during an era of anxiety and global uncertainty. Menu innovation continues to be of high importance. Therefore, when appealing to consumers considering which outlets to visit, new offerings should be positioned as offering a premium experience.

Trust, transparency and perceptions of value

For consumers, trust and transparency is synonymous with value. This is because consumers feel that maximum care and attention has been given to creating authentic products. Trust can also encourage trade-up if consumers think prices are because of brand philosophy rather than profit maximization. When asked what makes a foodservice outlet more trustworthy, global consumers were most likely to identify “transparency over how products are made” (81%). In addition, 69% of consumers said “ethical/environmental credentials”. These attributes are interlinked and highlight the importance of foodservice outlets being seen to be acting in an ethical and honest manner along the supply chain.

These attitudes towards the environment and sourcing ingredients will reflect the quality and attentiveness they put into the making of products. Perceptions of premium are also likely to be swayed by ethical credentials and natural, high quality ingredients. This further emphasizing the link between trust and quality and how consumers are attentive to ingredients, using this as a benchmark for shaping perceptions of quality.

Brand voice and strategic storytelling

Outlets should look to emphasize brand values and provide the story behind the products sold. This includes the sourcing of ingredients and the creativity around the creation of recipes to highlight to consumers that products are the real deal and worth trading-up on. A strong brand voice and heritage will contribute towards the consumer experience, creating a memorable occasion and encouraging repeat visits.

This article is based on FMCG Gurus – Foodservice Trends - Country Reports 2025. To discover more, please click here.

Top Trend 1 - Maximize My Value

Consumers are Less Confident about their Financial Savings

Many people are experiencing the impact of rising prices and are actively looking for ways to reduce their expenses. The increase in prices is due to various factors such as crude oil costs, population growth, climate change, and disruptions in global supply chains. There is a growing concern about economic uncertainty and personal savings, leading consumers to adopt a more cautious approach. This shift is driven by a belief in insufficient household savings, resulting in more individuals feeling financial pressure and dealing with everyday living expenses. As a result, as consumers adopt more conservative and recession-based spending habits, their brand loyalty diminishes. This makes them more open to exploring different shopping options and engaging in both high and low levels of consumerism.

Consumers are Cutting Down on Non-Essentials as a Result of Rising Grocery Costs

When analyzing price inflation, consumers are more likely to observe price hikes in essential items such as bread and dairy, highlighting the challenge they face in reducing their shopping expenses. Despite their efforts, consumers may struggle to stick to a budget and occasionally make impulse purchases on non-essential items, leading to subsequent feelings of guilt.

Even before the recent surge in the cost of living, many consumers already found grocery shopping for food and beverages to be costly. The increase in prices over the past year has amplified these concerns. As a result, this has led to a rise in the percentage of individuals who perceive grocery shopping as expensive. Interestingly, the percentage of individuals noticing price increases remains consistent. This indicates that a growing number of people have previously felt capable of managing living costs but are now encountering difficulties. 

Consumers are Concerned about Rising Prices and Worry that Cost-Cutting will Impact their Physical and Emotional Health and Wellness

The increased emphasis on health in recent years, accelerated by the pandemic, has prompted many individuals to take an active approach to their well-being, leading to an overall sense of enhancement in their health. Consumers are driven to maintain these improvements for the long term. At the same time, a concern shared by more than half of global consumers is the impact of rising prices on their health and well-being.

This concern can be attributed to two primary reasons. Firstly, consumers perceive maintaining a healthy diet and consuming fresh foods as costly. This causes them to make trade-offs between nutrition and affordability. Secondly, consumers are apprehensive about the effect of rising prices on their emotional well-being, as it is associated with increased stress levels. This highlights the necessity for retailers, brands, and manufacturers to educate consumers on how they can uphold a healthy diet on a budget, by providing innovative solutions and guidance to challenge the notion that nutritious products come with a high price tag. Furthermore, this trend is also expected to fuel the demand for products and ingredients perceived to contribute to emotional wellness. 

Promote Value for Money Rather Than Low Price

Amidst consumer spending cutbacks, it is crucial to acknowledge that they are not solely seeking the lowest prices, but rather looking for products they consider to offer great value for money. Consumers perceive products as providing good value for money when they strike a balance between quality and price. Moreover, products that exhibit maximum effectiveness will strongly appeal to them. This may encompass aspects such as nutritional value, multifunctional attributes, and sensory appeal. Consequently, brands, producers, and retailers should highlight the value and narrative behind their products to resonate with consumer needs.

This article is based on FMCG Gurus: Top Trend 1 - Maximize My Value – Global Reports 2024. For more information, please click here.