The pandemic has changed the way we do business but also how we live our lives. Now, a new study by GlobalData, a leading data and analytics company based in London, England, is showing that a new type of consumer has emerged. This new persona is being referred to as the “hermit consumer,” and they’re characterized by the desire to go out less often — a new reality which has consequences for the foodservice industry.
It’s not an unexpected phenomenon given the harrowing realities of the past four years, which have since been exacerbated by rising inflation, supply-chain issues and geopolitical tensions.
The survey reveals that foodservice channels are not on the path to “recovery” in the way many expected during the early days of the pandemic. According to the research company, “The global foodservice industry has not returned to any kind of pre-pandemic normalcy during 2023. Value sales have increased just three per cent since 2019, with overall transactions down three per cent over the same period. Revenue from dine-in sales is down 12 per cent compared to 2019 while, notably revenue from takeaway is up 46 per cent.”
“The idea of a post-pandemic recovery for the foodservice industry assumes that 2020-’21 was a blip — an exogenous, once-in-a-lifetime event which would halt progress for a year or two before normal trends and consumer behaviour resumed,” says Fred Diamond, senior food consultant, Consumer Custom Solutions, at GlobalData. “However, during that period something changed. We have changed. People are still spending, and still consuming, but in a radically different way.”
Results of the survey, undertaken in Q4 2023, indicate that 46 per cent of consumers say they will be eating out less frequently over the next three months, and a further 11 per cent say they will stop altogether. As Diamond explains, “…In 2020-’21, people stayed in more because of the Coronavirus. In 2022-’23 people, stayed in more because of price rises. This is four years of behavioural change on a global scale. The idea things could snap back to the way people saw the future from the vantage point of 2019 has to be abandoned, and the new landscape embraced.”
He explains this is a combination of both a mass exodus from one channel to another and a general loss of interest in the sector, due in part to the rise of the “hermit economy.”
So, what can operators do about this shift? As always, innovation is the most important ingredient to success. “Appealing to concepts such as authenticity and heritage can resonate strongly with consumers. Consumers all over the world are becoming skeptical of products that appear mass-produced or otherwise unoriginal.” Operators, he says, need to also become more entrenched in their community — both through sourcing ingredients locally, and by reflecting local culture in the food served. In fact, 75 per cent of global consumers say that authenticity is “essential” or “nice to have” when deciding which product to purchase, according to GlobalData’s survey.
And, if your operation doesn’t have a takeout-and-delivery option, what are you waiting for?
