Arena round table - July 2024

in partnership with Kraft Heinz Away from Home

29 July 2024

On Friday 12th July, hospitality leaders met to discuss challenges facing the industry in 2024, the power of brands and the joy of baked potatoes. Senior leaders from hospitality and foodservice came together at Arena’s Summer Event at The Waldorf Hilton for a roundtable hosted by Kraft Heinz Away from Home and chaired by Anita Murray, CEO of William Murray.

Participants

Jason Radbourn

Head of Food, Greene King

Wayne Brown

Global VP of F&B Development, Ennismore Hotel Group

Bharti Radix

Founder and CEO, Bloomsyard

Alex Robinson

Culinary Lead,Compass

Ian Nottage

Head of Food Development, Sysco

Martin Eshelby

Food Development Controller, Bidfood

Jeni Edwards

Business Development Director, Restaurant Associates

Lawrence Ager

Culinary Sales Manager, Kraft Heinz

Anita Murray

CEO, William Murray PR & Marketing (Chair of Round Table)

Event Review

State of the industry: The roundtable kicked off with a discussion of the state of the industry. There was general agreement that the Euros has had a positive impact – particularly for the pub sector. But in general all agreed that the last few months have been more challenging compared to last year for a number of different reasons.

Participants discussed the shifts in market dynamics and the ongoing cost of living crisis affecting consumer spending when dining out. People are dining out less frequently and spending less when they do.

Pricing volatility and staffing shortages continue to be significant issues, leading to shortened menus with safer, more mainstream options. Businesses continues to struggle with high costs of goods and utilities, and the recent minimum wage increases have further strained budgets.

Unusual adverse weather has also impacted the industry, affecting both outdoor dining and produce supply.

It's too early to say what effect the new government will have but the hope around the table is that it results in a growth in consumer confidence.

The importance of experiential dining: Workplace dining has evolved, with younger generations less inclined to go out on weekends or drink. Friday night in London now looks very different than it did a few years ago! Creating in-office experiences is crucial to attract people back to workplaces. Santander’s HQ in Milton Keynes was given as an example, with a food hall, restaurant, social enterprise cafe and sky bar, all on different floors and open to both the public and employees.

In the hotel sector, good food and drink is no longer enough to entice people out and offering experiences that tell a story has become essential.

Similarly, pubs need to provide alternative reasons to visit, such as a café atmosphere or street food inspired food pop-ups, as younger consumers drink less. It’s about looking at your spaces and how these can be used.

Competition has broadened out, pubs no longer just compete with pubs but other social experiences such as social darts, football and bowling.

Importance of branded products: The panel emphasised the importance of the careful selection of brands, which can reflect an establishment's values and significantly influence customer perceptions around quality and sustainability.

Premiumization of staple products is on the rise, with consumers willing to pay more for elevated basics. Brands alter guests’ perception of value as the value of trusted brands, like Heinz, is seen as a stamp of approval.

One of the positives of Covid is that people are more aware of food offerings and have an understanding of what a brand can be. Takeaways are taken more seriously and people are seeing the value in better options. Value is not seen as price but experience. Consumers expect to see the brands they buy for home to be available when dining out, and notice when it’s not used BOH.

The discussion also touched on missed opportunities in menu writing and the importance of showcasing value-adding ingredients. There was also agreement that people don’t read the full menu and the placement of vegetarian dishes needs to be given more thought.

Supplier relationships: Operators expressed the need for suppliers to innovate and reduce packaging. They also want suppliers to demonstrate transparency in production as consumers increasingly question provenance.

They want suppliers to focus more on storytelling and work with operators to activate these stories. Authentic storytelling and social media collaboration are vital for engaging younger consumers and maintaining trust. Operators want partners who can bring their brand and community together on social media.

Participants also noted the importance of suppliers understanding operators’ customers and working as partners to create concepts. They want suppliers to be an extension of their team. They also want suppliers to dial up their communication to them.

They want a total supplier package of great products, storytelling with ESG and consistent communication and collaboration.

Inspiration, innovation and what’s missing:

Some operators use trends data from industry sources both UK and International and they also create their own. One participant runs an annual ideation programme – including surveying hairdressers and taxi drivers to understand it’s consumers.

Social media, Tik Tok and particularly Instagram, was cited as a significant source of inspiration. Getting out to outlets and experiencing the customer journey was also high on the list. Finally, learning from high street trends and conducting food tours were also recommended.

Additionally, tech advancements like AI scanners and kiosk ordering are gaining traction, but it was agreed that they must enhance the customer experience without adding complexity. Overall, the roundtable provided valuable insights into the current challenges and opportunities within the hospitality and foodservice industry, highlighting the importance of innovation, collaboration, and understanding consumer needs.

The hospitality network