Food & Hospitality Strategy Blog

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Towards the end of each calendar year, we like to take a look back at how the industry has shifted, the trends that have taken off, and try to pre-empt the future face of the industry. This year we are embarking on the same assignment, however the impact Covid lockdowns have had on the industry, especially in Melbourne, and to a lesser extent Sydney, we know that the future face of the industry may have been changed forever.

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Embracing Change to Survive and Maximise Food Service Sales
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Embracing Change to Survive and Maximise Food Service Sales

Australia’s two major cities have currently been in lockdown for over ten weeks with Melbourne now being in lockdown longer than any city in the world, 246 days so far and one month remaining. The prolonged closures on food and beverage venues have ranged from hard to devastating, not just from a sales perspective, but on the lives of hospitality workers and their families.

However, creative food and hospitality operators have managed to innovate, stay agile, plan for the end in sight and have reinvented their business in order to prepare for the huge demand that his been building up and will let rip once the lockdowns end. Cafés and restaurants, along with bars and hairdressers are at the top of everyone’s to do list.

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The elevation of F&B in the Hotel industry
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The elevation of F&B in the Hotel industry

Future Food are leaders in Food & Hospitality Consulting to the hotel industry, partnering with developers and hotel operators around the world to maximise the benefit food and beverage can bring to their property.

Throughout 2018/2019 it seemed that every week we were picking up the newspaper and reading announcements of the “Next New” hotel being built in one of our capital cities, or the first of its kind new ‘Lifestyle’ hotel brand entering the market to cater towards new customer demands in the aspirational hotel market.

With the introduction of brands like 25 Hours Hotels by Accor, Voco Hotels by IHG and W Hotels by Marriott, it appeared that the ‘lifestyle’ product was on-trend and in high demand, yet the announcement of global leaders including St Regis, Ritz Carlton and Mandarin Oriental also eyeing off new locations in Sydney, Perth and Melbourne revealed the push across all levels of hotel positioning.

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Hospitality Mindset – A sales & service maximiser approach (Part 2)
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Hospitality Mindset – A sales & service maximiser approach (Part 2)

In part one of this article, I spoke about the customer’s timeless desire and appreciation of quality food and service and how this is the platform from which to drive food and hospitality sales.

Let us be clear from the outset, it is all about sales. Why? because Food+Design+Service =Sales=Rent=Profit=Asset Growth.

In a post-corona world, (at least in Australia and New Zealand,) we have new expectations of our cafes, restaurants, pubs, roof-top bars and food halls, as we all strive to regain daily routine and a comfort-level in the next-normal.

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Hospitality Mindset – It’s All About The Customer
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Hospitality Mindset – It’s All About The Customer

The Business of Food starts with thinking about hospitality – I call it a Consumer-First Approach. One that consistently excites as well as offers choice, efficiency, value, quality and consistency. Food and hospitality spend across the globe is on the rise, with all sectors vying for the food-dollar. Where the customer decides to spend is highly dependent on how well the food operator has considered the customers aspirations and their needs and aligned these with a clearly defined ‘Hospitality Mindset’. Time and time again, this presents as a memorable experience-proposition. A strategic blend of art and science is required by all operators to ensure a return on experience for every customer. The trilogy of design, food and service cannot be separated, as they represent the cornerstone first principles, and when combined with psychology, emotions and passion, produce a successful recipe every time.

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Trends for 2022: Re-engaging with Food in a Design Led World
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Trends for 2022: Re-engaging with Food in a Design Led World

2021 is going to be, in the parlance of your local footy team, a rebuilding year. So much damage has been done to retail in general and hospitality in particular this year that 2021 is going to be a year to heal, slowly getting back on public transport and getting settled into the Next Normal.

2022, then, is shaping up as a really interesting year. The food operators that survived the pandemic, and especially those that opened during it, are battle-hardened and realistic: An excellent foundation on which to rebuild Food and Hospitality. With the gradual renaissance of the CBD and face-to-face interactions, there is ample scope to start contemplating how to harness and encourage demand.

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F&B Operator Procurement Strategies – Delivering on the Vision
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F&B Operator Procurement Strategies – Delivering on the Vision

In the current business environment, securing the best F&B operators within your project, development or institution, can be challenging. This may be compounded, by shifting operator demands, (complicated lease conditions, staged incentives, abatement clauses, etc) and a new expectation of rental revenue models, what is the rental return that can realistically be achieved?

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Reconnecting with Customers
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Reconnecting with Customers

Building Loyalty and Maximising Sales by leveraging unique Points of Difference (PODs)

Maintaining a loyal and diverse customer base has never been more important in a time when most consumers are scrutinising how and where they spend their disposable income. In the last six months priorities and spending habits have shifted for consumers, while some customer segments have continued to purchase, in one form or another, there will also be a need to re-establish or reconnect with others in order to begin the journey back to previous levels of revenue and eventual profitability.

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EOI Campaigns “A crucial piece of the puzzle”
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EOI Campaigns “A crucial piece of the puzzle”

The food, hospitality and broader retail landscape is currently facing unprecedented challenges that will undoubtedly reshape it for years to come.

‘Out of adversity comes opportunity’ and it is Future Food’s belief that opportunity now exists to challenge the status quo, do things differently and employ a more holistic approach when attracting and engaging food and hospitality operators for your project.

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Food & Beverage Strategy - Future Focused Part 2
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Food & Beverage Strategy - Future Focused Part 2

Food Beverage Strategy - Future Focused Part 2

Building great places and creating exceptional experiences for your 'Non-Online' purchases

In part one, I wrote about how flexibility must be the foundation from which to develop future-focused food and beverage strategies (F&B Strategy). Insights from our projects around the world confirm time and time again, flexibility is the key to future planning. Whilst the pandemic has driven substantial growth in on-line purchases; future spending on food and hospitality will ALWAYS be about the built environment and its uniqueness as a lifestyle destination. New Zealand’s post-pandemic immediate return to eating out and drinking in bars re-confirms customers still demand a unique physical restaurant or bar especially at malls that show intrinsic value as beautiful and hygienic socialising places.

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Food & Beverage Strategy - Future Focused
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Food & Beverage Strategy - Future Focused

Food Beverage Strategy - Future Focused

In this two-part blog, I will share with you why change is good when it comes to food and hospitality planning and how new opportunities must harnessed in order to think differently and to future-focus food and beverage strategies (F&B Strategy). One that complements the vision for the project; including the built environment, placemaking, lifestyle attributes, anchors and entertainment features, to name a few.

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