Foodservice Equipment & Supplies

SEP 2017

Foodservice Equipment & Supplies magazines is an industry resource connecting foodservice operators, equipment and supplies manufacturers and dealers, and facility design consultants.

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32 • FOODSERVICE EQUIPMENT & SUPPLIES • SEPTEMBER 2017 nothing more convenient than having the restaurant come to you. Going forward, delivery is going to increase its share in the off-premise market and the total foodservice market," Riehle says. No doubt the influence of delivery will continue to grow, forcing restau- rant operators of all shapes and sizes to respond accordingly to this evolv- ing customer expectation. "Clearly consumer behavior has evolved where online ordering and delivery has become central to the industry," Veidenheimer points out. "How operators handle that, whether it be their own delivery service or contracting with Grubhub or Uber- EATS — it's here to stay. Those third- party delivery companies will continue to build share over time. The key is how restaurants address that opportunity." Some companies will aggressively pursue delivery. Take, for example, Pizza Hut. The national chain plans to hire 3,000 delivery drivers a month through the end of the year. Even quick-serve giant McDonald's got into the delivery game this year. Thanks to a deal with UberEATS, McDonald's now offers its McDelivery service at more than 7,800 restaurants in 47 countries on 6 continents. Third-party delivery is part of what many refer to as consumer-direct channels. This emerging foodservice industry bright spot also includes food trucks, online ordering and meal kits. "Things across the food industry are better than many measurements indicate because of the performance of nontraditional players," Veidenheimer says. "These segments represent less than 10 percent of the market but are growing at a double-digit rate." These parts of the foodservice industry may seem new, but they will continue to develop rapidly and, in do- ing so, come to play a more prominent role in the way consumers use foodser- vice. In the coming years, food industry consulting firm Pentallect projects 25 percent to 30 percent of total growth in foodservice industry will come from this emerging segment. Key ingredients in operators' ability to successfully offer delivery include technology (namely, the ability to place and process orders) and packaging. "When you look historically at car- ryout and delivery, it has focused on pizza and fried chicken and other items that transport rather well," Riehle says. "Today there are a lot of developing packaging options that will allow differ- ent cuisines to transport well without compromising the quality." For example, in the case of deliver- ing gourmet burgers to a customer, the operator may need to package the lettuce and other components separate from the patty to ensure the integrity of those items remains uncompromised. "It requires some assembly, but the overall product quality is better," Riehle says. From an operator's perspective, though, embracing technology means more than an opportunity to grow sales. In fact, four out of five operators feel that technology not only enhances sales, it also makes their businesses more efficient and provides a competi- tive advantage, according to the NRA. Primary Cooking Equipment . . . . . 20.79% Refrigeration and Ice Machines . . . . . 9.71% Warewashing and Safety Equipment. . . 8.57% Food Preparation Equipment . . . . . . . 9.95% Serving Equipment . . . . . . . . . . . . . . . . 6.42% Storage and Handling Equipment. . . . 5.05% Smallwares . . . . . . . . . . . . . . . . . . . . . . . 9.29% Tabletop Items . . . . . . . . . . . . . . . . . . . . 3.16% Furnishings . . . . . . . . . . . . . . . . . . . . . . 4.95% Paper Goods/Disposables . . . . . . . . 13.45% Janitorial and Sanitation Supplies . . . 8.66% Operators' Foodservice Equipment and Supplies Projected 2018 Budget by Product Category Key ingredients in operators' ability to successfully offer delivery include technology (namely, the ability to place and process orders) and packaging. STEADY AS THE FOODSERVICE INDUSTRY GROWS Source: FE&S Forecast 2018

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