Article
Executive round table: Quick-service industry leaders make their 2015 predictions
Localization, transparency and a healthy/indulgent spectrum are expected to accelerate in '15, as are mobile ordering and catering.
December 22, 2014 by Alicia Kelso — Editor, QSRWeb.com
We've presented the top trends in 2014 and the biggest predictions for 2015 from the perspective of chefs, market research firms, journalists and more. Now, we're asking those who are deep in the trenches – the ones who actually run the businesses that make up the vast restaurant industry – for their insights.
The top menu and non-menu stories from 2014 and the biggest expectations for 2015, according to QSR executives include:
Biggest culinary trend in 2014
As expected, proteins emerged as a big theme this year.
Shelly Thobe, Wendy's director of culinary and product information, said this year featured "meats uncommon to QSR menus, which provided customers with the unique food experience they were seeking."
Her company, for example, launched BBQ Pulled Pork in the summer, complete with three sauce choices.
From Sonic's perspective, the growth of chicken offerings was the big story this year.
"Sonic's chicken business has grown dramatically in the past few years, and with the success of our recent launch of the boneless wings, I don't see it slowing anytime soon," said Claes Petersson, vice president, product & packaging innovation.
Bojangles' SVP of R&D Mike Bearss also noticed more emphasis on chicken this year due to higher prices of beef and pork.
The commodity pressure, he adds, also created a trend away from the value menu segment that was "increasingly difficult to remain profitable."
This year also created more daypart pressure, Bearss said, and more consumer influence.
"Rather than a specific culinary trend in 2014, I saw the emergences of needing to be reactionary to the millennials as the most influential trend of 2014," he said.
Two major responses to millennial preferences have been customization and nostalgia. Wendy's and Tim Hortons were two brands that went for nostalgia, while Shawnon Bellah, SVP of Global Operations for Nestle Toll House Café by Chip, called it a "big" trend, which is why his company launched the heritage ice cream sandwich.
Another dessert concept, CREAM, embraced the customization demand.
"It has been on trend for years, but it seems like it is as big as ever. Customers continue to seek out as much variety and personalization for the product," said COO Jim Ryan.
The morning daypart certainly garnered plenty of attention this year and the QSR segment's increasing focus on breakfast was the top story for Dunkin' Brand's Executive Chef and VP of Product Innovation Jeff Miller. In 2014, Dunkin' Donuts introduced the Eggs Benedict Breakfast Sandwich and Chicken Apple Sausage Breakfast Sandwich, and new coffee flavors, including sugar cookie and pumpkin crème brulee.
Perhaps the rise in breakfast explains the proliferation of bacon.
"Bacon has really been a large player in the food industry. It seems like no matter where you looked bacon was being added to everything from chocolate to chicken," said Philly Pretzel Factory President Marty Ferrill.
And who doesn't want to snack on bacon? Snacking was cited by Doc Popcorn Co-Founder Renee Isreal as a central theme from 2014.
"Snacking has blurred dayparts and, in itself, has created several mini dayparts," Israel said.
Finally, local sourcing experienced an increase in demand this year, according to Forever Brands CEO Mandy Calara and Trufoods LLC CDO Gary Occhiogrosso.
"Craft and local offerings have clearly been coming up across the nation. I think that people have been really interested in focusing on supporting any and everything locally," Calara said.
"Consumers really want to know where their food is coming from and that it’s local, with as little agricultural processing as possible," Occhiogross added. Trufoods, for example, is exploring more local options with its new Pudgie's Naked Chicken Co., and "has seen great success with produce from local farmers."
Food trend predictions for 2015
The idea of local sourcing and transparency is expected to accelerate in the New Year.
"Over the past few years, consumers have expressed a growing interest to know that the food they eat comes from trusted and reputable sources. In 2015, we expect to see this consumer interest become a priority for QSRs," Thobe said.
Millennial influence has caused this paradigm shift, Bearss said, and ingredient transparency will continue to influence menu development.
"Consumers are going to continue to demand to know exactly where their food comes from. Locally and sustained ingredients will not only continue to push the fine dining industry but QSR as well," Ryan agreed.
Petersson expects chicken and beverage offerings to continue their expansion in the New Year.
"We just recently launched a line of hand-crafted sodas in response to the rising trend of flavored waters and carbonated beverages with less sugar," he said.
Bellah echoed this prediction, adding that non-alcoholic specialty beverages are on a "fast track."
"Items like high-end flavored hot latte and hand-spun lemonades are hot. And why not? They're better for you and they offer such a versatile platform," Bellah said.
Miller predicts the demand for spicy to heat up, adding that Dunkin' Donuts will continue to introduce menu items with "bold, spicy flavors," such as its recently launched Hot & Spicy Breakfast Sandwich and Pepper Jack Supreme Bagel.
Other executives believe there will be a dichotomy of healthier and indulgent offerings in '15.
'We are expecting to see both ends of the spectrum played out to include both comfort foods and healthier options," Ferrill said. "We can expect anything that is low-calorie, organic, gluten-free, etc., to see increased sales."
However, comfort food will also be big across the board, he said, including cheese and carbs.
"While there is a part of the population that sizes up value by the amount of food on their plate, more people will pay for portion control. This is particularly true in more indulgent categories. The expectation bar will continue to rise. The ability to serve the 'segment of one,' providing choice and customization, will continue to drive the industry," Israel said.
Additionally, the customization component isn't expected to go away anytime soon.
"Customization of healthier alternatives is going to boom. Everyone is more focused on eating well and eating better, so having options to make healthy taste good is going to be huge," Calara said, predicting an explosion of Mediterranean cuisine.
"There will be an even more prominent shift by guests to be able to customize their menu items, primarily with regards to healthier options. Everyone has their own definition of what healthy eating is, so it’s important to recognize this and adapt menus as such," added Occhiogrosso.
Non-menu trend predictions for 2015
And, finally, executives are placing their bets on technology-driven innovations centered on mobile, to be the big non-menu story in the New Year.
"Technology continues to be a game changer in the QSR space. In 2015, we’ll continue to see mobile payment, ordering and loyalty/rewards take shape," Thobe said. Wendy's first established its mobile payment capability earlier this year and is exploring mobile ordering and loyalty next.
"We see opportunity for technology to improve operational efficiencies while enhancing the customer experience," Thobe said.
Ferrill expects mobile payments and automated E-Z pay machines to see a "huge bump" in 2015.
"No one wants to be concerned with cash anymore, so the faster and easier you can go through the entire process, the better," he said.
Calara went one step further, claiming that restaurants will have to have mobile ordering and delivery options.
"Everything is going mobile. Mobile searching has outpaced internet searching, and tablet usage has outpaced television watching. If you want to stay with the times, you have to have mobile ordering and delivery. If you don't, you're going to cut yourself out of consideration half the time," she said.
Bearrs said enhancements will continue not only within the mobile space, but also with the use of social media to interact with customers; customer experience measurement; loyalty programs; order-taking technology; digital drive-thru menu boards; and tableside ordering.
Bellah believes retailers will continue to add café operations to their spaces.
"Coffee shops will keep customers in their stores longer," he said.
Israel is expecting more food delivery efforts – or "bringing food to the people, wherever they are."
"Culinary food-trucks and other mobile units, higher-quality vending and smaller 'express' versions of larger restaurants will continue to dominate the food space. If you just look at what is happening on the streets of major cities and small towns alike-- sidewalks, side streets and parking lots are being transformed into a smorgasbord of outdoor food courts, either permanently or temporarily," Israel said.
Along those lines, Ryan expects catering to grow exponentially next year and beyond for the QSR segment.
"The days of pizza and sandwich only catering seems to be over. We recently launched catering with CREAM and have seen tremendous success," he said.
Photo provided by Flickr user Mai Le.
