The Future of the Restaurant Industry According to the National Restaurant Association Show 2024

On May 21st, the National Restaurant Association Show 2024 concluded with insights into the future of the restaurant industry in the United States. The event covered critical topics such as finances, restaurant format trends, technology, menu innovation, tipping, and unionization.

What Awaits the Food Service Industry in the Near Future?

During the seminars and talks at the event, a common question was: What to expect in the near future? Industry experts gathered multiple times for broad discussions covering various themes. Here are six conclusions:

1. General Industry: Bad and Good News

• • Flat consumer traffic, a challenge for operators in 2024, is expected to persist as consumers believe “restaurants are becoming more expensive.” Despite these concerns and restaurant prices surpassing current inflation rates, there is hope on the horizon for operators. The good news is that costs are decreasing: labor and food costs continue to decline. Margins are improving as many of these prices begin to stabilize. It now depends on operators to revitalize their customer base. Consumers are resilient. It is up to restaurants to excite consumers about dining out at their establishments.

1. Co-branding: Ready for a Comeback

• • A potential strategy to revitalize customers? Co-branding. The proliferation of virtual brands during the pandemic has fostered a new openness to “create a variety of menu items in one kitchen,” making co-branding an ideal solution. We anticipate seeing a lot of co-branding with sister brands and brands owned by the same parent company. Instead of being a virtual brand, simply place the other brand at the front of the same building. It’s a great marketing tool, as instead of choosing between two kitchens, customers can “go to the same place to get something that makes everyone happy.”

1. Fast Casual: Prepared for Automation

• • After years of labor struggles, 2024 is expected to be the year quick-service restaurants fully embrace automation. Facing high wage pressures, operators seem to have no other recourse. This will be the year we see automated restaurant concepts testing a model. Despite ongoing debates about automation in hospitality, the trend is not expected to diminish: within five years, the world of restaurants, or at least the limited-service space, will look very different.

1. Menu Trends: Mushrooms, Sweet Heat, and More

• • Trends move fast, but some endure: five sure hits for 2024 include mushroom-based “meat,” providing a less processed alternative to other plant-based foods. Close behind are mocktails featuring coffee and tea as primary mixers, indicating the emergence of “next-generation non-alcoholic beverages.” The continuation of the “sweet heat” flavor trend is anticipated, along with the trend of “boards,” as “seacuterie” (smoked and cooked seafood) boards gain momentum. Finally, expect to see “many limited-time offers (LTOs) on the horizon for 2024” as operators seek to attract customer traffic through exclusive, seasonal, or unique menu items at lower prices.

1. Tipping: A Nuisance and a Motivator

• • With “tip fatigue” and regulation at its peak, restaurants will accelerate their “search” for an effective no-tip wage model this year. People want a model that still motivates employees, still provides a great income, but without all the hassle and regulation and risks that come with intense state and, to some extent, federal tip regulation. What that model will look like and whether it can thrive beyond full service remains a mystery, but operators have an ally: unions. Tipping has become the cause of the moment for organized labor, although so far, its elimination in certain regions has not led to the wage increase unions expected.

1. Technology and POS Systems

• • One of the standout conclusions was the growing importance of technology in managing restaurants and their offerings, with improvements in point-of-sale (POS) systems becoming a demand from owners that will aid in the sector’s evolution. Modern POS systems are the first technological tool that operators select when starting or growing their business. The implementation of these systems helps restaurants improve their profit margins and adapt to changing consumer demands and market trends. Technology applied to customer service, such as advanced POS systems, is playing a crucial role in transforming the restaurant industry in the United States.

In conclusion, the immediate future for most restaurants will be determined by how restaurant owners navigate industry trends, consumer tastes, production and labor costs, and the innovations they make to their gastronomic offerings. For this, the use of technological tools like Advanced Point of Sale Systems is essential.

Particularly, Juvo has emerged as a revolutionary innovation in the field of POS systems. Juvo not only facilitates payment processing with any card processor and existing hardware but also includes advanced marketing tools. These tools allow operators to better understand customer behavior and design more effective marketing strategies. Moreover, Juvo offers multiple functions, including inventory management, staff control, real-time sales monitoring, and detailed report generation, enabling important decisions for the future of your business.

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