Arena Round Table - December 2024

in partnership with Nestlé Professional

2 December 2024

Participants

Suk Nicholas

VP Global, Krispy Kreme

Werner Hartholt

Group Development Chef, Butlins

Julian Clarke

Operations Director, New Dawn Pub Company

Gary Richmond

Culinary Learning & Development Manager, M&B

Rachel Masing

People Director, ETM Group

Kate Alexander

Head of Food & Commercial Channels, Nestlé Professional

Josh Lewis

Category & Channel Lead, Nestlé Professional

Anita Murray

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

Event Review

Driving profit while delivering satisfaction: The roundtable kicked off with a discussion of the current challenges that are facing the out-of-home desserts sector and how to ensure you are delivering customer satisfaction, while also driving your profits.

One of the most significant challenges highlighted was balancing the satisfaction of desserts with the growing need to cater to allergens and dietary requirements. Vegan and plant-based options, while necessary to meet customer expectations, often present profitability concerns and can alienate non-vegan diners. Operators acknowledged the need to offer desserts that deliver on taste while also addressing nutritional considerations.

Familiar classics, such as apple crumble and cheesecake, were identified as ideal desserts for reinvention, with the addition of premium ingredients or creative flavour profiles to justify higher price points and enhance customer satisfaction.

To get consumers to spend more, it needs to be something they can’t create at home, or if they can, it needs to be remarkably better and have a point of difference.

Other creative strategies included highlighting ingredient’s provenance on the menu. This not only pushes the boundaries but gives an element of education to the consumer on where their ingredients are being sourced from.

Imagery and creating a unique experience give operators the chance to drive profit. This could be through imagery on menus, special call outs, making a theatre dessert that catches the eye or personalised and customised desserts consumers can make their own.

These discussions reinforced research from Nestlé Professional’s ‘Breaking Dessert Barriers’ report, revealing that 30% of respondents would spend more on a dessert they can't create at home, while 29% are willing to spend more on desserts with visual appeal and presentation.

Balancing indulgence: The rising popularity of smaller dessert portions and sharable options reflects consumers’ desire for satisfaction without overindulgence. A mini dessert and hot drinks option was noted as particularly effective in appealing to guests seeking a lighter ending to their meal, without compromising on taste, value and the sweet delights that desserts bring. It also allows operators a good way of working within the nutritional guidelines.

Sharing desserts sparked conversation. While it’s a great way to add value and allows consumers once again to be satisfied without overindulging, others mentioned that they don’t think sharing is the way forward. People don’t always want to share and have different palettes. Mini desserts always perform better, especially for parents wanting their children to have a sweet treat but are conscious of letting them overindulge.

Since stating calories on dishes are now a legal requirement for operators’ out of home menus, the focus has dropped on other important factors. Calories put a bad lens on what is considered healthy or not. However, some participants said that calories won’t stop people from ordering a dessert. Consumers would rather compromise on other factors, such as lower fat than compromise on a lower calorie alternative that doesn’t have the same taste and enjoyment as the real thing.

Most dining experiences are just that...an experience.

Nostalgia: 80% of desserts sold are the classics, with treats like cheesecake and chocolate fudge cake and brownies dominating the category. These are elements operators believe you should never remove from your menu. It would cause uproar and negativity from consumers. Although operators want to break barriers as well as creating and tapping into trends, they evolve and revolve. Trends always come back around and some can take a while to embed itself, so operators shouldn’t feel pressure to always jump on trends.

Power of the brand: Nestlé Professional’s research revealed that 63% of UK respondents are more likely to choose a dessert when a trusted brand name is featured on the menu.

Diving deeper into this statistic, participants discussed how branding and provenance are essential elements in creating compelling dessert menus. Trusted brands provide a sense of comfort and quality for diners, making them more likely to choose certain menu items. Local provenance also adds authenticity and supports community economies, making it a particularly strong selling point for regional operators. The emotional connection fostered by storytelling—whether through branded ingredients or evocative menu descriptions—plays a critical role in influencing customer decisions and enhancing the overall dining experience.

Rising costs: There is a lot of nervousness in the UK and globally about rising costs, particularly from supply chains. The costs keep on coming, but operators can’t keep raising their menu prices as it puts them in danger of biting the hand that feeds you. It’s important to not pass these struggles onto the consumer, including reducing product quality with cheaper ingredients.

Positive outlooks for 2025: Despite the challenges, the roundtable concluded on a note of optimism. While certain demographics are facing financial strain, others continue to spend on dining experiences, particularly for special occasions. Participants expressed confidence in the continued importance of innovation, collaboration, and delivering high-quality, memorable experiences. The year ahead presents opportunities to strengthen customer loyalty, refine offerings and leverage creativity to thrive in a competitive and evolving market.

Thank you to Nestlé Professional for sponsoring this round table.

To discover more what’s shaping dessert preferences in the UK out-of-home scene, download Nestlé Professional’s newest report ‘Breaking Dessert Barriers’ here.

If you’re interested in hosting or participating in a future round table event, please contact Lorraine.

Event Sponsor

At Nestlé Professional, hospitality is more than just a business: it’s our business. Nestlé Professional believe in ‘Good Food, Good Life; and work with businesses of all shapes and sizes, providing creative food and drink solutions out of home.
For the hospitality industry, this commitment means inspiring the next generation of culinary talent through the Nestlé Professional® Toque d’Or® competition, advancing efforts in nutrition, health, and wellness, and collaborating with industry leaders to build a more sustainable future. From coffee to cocoa and addressing food waste and water challenges, Nestlé Professional® works alongside farmers, chefs, and operators to make meaningful progress toward sustainability.