The Wall Street Journal’s Global Food Forum is an exclusive invitational event that gathers leaders in the food business to discuss the issues of the day impacting the world of food domestically and internationally. This exhilarating, one day session includes leaders in agribusiness, food manufacturing, restaurants, retail and government.
17 speakers were interviewed by 10 journalists in a lively debate about the trends that are transforming the food business. The day also offered the opportunity for small group lunch conversations with the keynote speakers and this report includes some insightful comments regarding the future of restaurant chains from the conversation with Ron Shaich of Act III Holdings and founder of Panera.
The Future Is Real Food
The heated debates regarding plant based protein alternatives of previous conferences were notably absent this year as the discussion of real food dominated conversations. Alice Waters took center stage as a passionate advocate for the farm to table movement. McDonald’s USA President, Joe Erlinger shared that McPlant is off the menu because it did not sell to their customers.
Although plant forward diets are a mega trend, the majority of Americans still enjoy meat. According to a nationwide Y-Pulse® survey of 18-34 year old U.S. consumers, 66% agreed with the characterization, “I am a carnivore that loves vegetables.”
Fast Food in A Post Pandemic World
Fast casual continues to be the segment to watch for innovation. There was much discussion of escalating food prices and immense variances around the country for prices charged to consumers by mega chains. The value wars continue to intensify yet numerous speakers like Steve Ells, founder of Chipotle reminded attendees that value is about much more than price alone. Quality is a crucial component in the value equation.
The Next Big Chain
Well known as the founder of Panera, Ron Shaich has moved on to developing new concepts and his advice was to focus on categories with momentum. He identified the following categories that are not new, yet offer substantial growth opportunities: Mediterranean, Upscale Bakery, Plant Forward and Immersive Entertainment. Cravability is only the beginning; the next wave of successful chains must offer food and experiences that consumers lust for according to Shaich.
Kelli Valade, CEO and President of Denny’s shared her thoughts on today’s American diner and the challenges and opportunities at play in the family/casual segment. Although virtual brands were created to tap a new customer base for Denny’s, some like Banda Burrito are proving to have universal popularity. Virtual brands also help to optimize kitchen efficiency in a segment not fully back to pre-pandemic levels. Denny’s acquisition of Keke’s Breakfast Café was spurred by their interest in the daytime eatery segment that is emerging with promise.
Implications for Food Marketers
The Guest Experience–Tech matters when it delivers a superior guest experience, not when it replaces personal hospitality that is the core of the hospitality business.
The Dilemma of Defining Healthy–The FDA is currently in the early stages of collecting insight on developing standards for healthy claims.
Food Connects The World–Look for increasing focus on food aid around the world from the U.S. and renewed interest in culinary diplomacy from developing nations.
Reinventing the Work of Fast Food–It’s important to understand the real value of robotics is in the back of the house increasing kitchen efficiency and making monotonous jobs more satisfying.
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