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Recent Trends in the Global Food & Beverage Sector

This World Food Day, we celebrate the innovations around the world that are transforming the way we dine, and contemplate how this will shape the future of the F&B industry

Recent Trends in the Global Food & Beverage Sector

  1. 1. eden strategy institute R E T A I L & C O N S U M E R Recent Trends in the Global F&B Sector S O C I A L I N N O V A T I O N P L A Y B O O K S E R I E S
  2. 2. VAPERF&B ESTABLISHMENT 2009 20132010 2011 2012 30% 5 - y e a r F & B s e c t o r p r o d u c t i v i t y g r o w t h C H A L L E N G E S • High turnover of skilled manpower and poor service quality • High capital and operating expenses • Fickle tastes of consumers despite strong food culture • Competitive marketplace • Low adoption of technology, research, measurement, and benchmarking Labour forecastingAggregator delivery models Self- servicing Online reservations Central kitchens POS-inventory automation Industrial automation 2eden strategy institute | 2 The Food & Beverage sector needs to stay ahead of global trends, in order to sustain and accelerate its growth trajectory PA S T E F F O R T S • Promote innovation and service excellence • Upgrade manpower and HR capabilities • Introduce new dining concepts and celebrity chefs • Increase awareness of productivity drive and inspire with success stories • Offer infrastructure support and productivity expertise
  3. 3. F&B is in a state of rapid evolution, with constant changes in consumer demand, new players, and ecosystem dynamics Operations Chefs & Service Staff Real Estate Asset Owners Technology Providers Non-Profit OrganizationsGovernment Labs Farms Cooperatives Services & Entertainment F&B Outlets Consumers Value exchange Regulation & Licensing 3P Partnerships Cause marketing Collaborations Production Technology Standards & infrastructure Employment Industry development Space & Joint marketing Logistics Outsourced activities Investments & Food security 3eden strategy institute | 3 Talent pool Consumption Technology Ingredients Kitchen
  4. 4. ENGAGING CUSTOMERS WITH PARTICIPATORY DINING KEY IMPLICATIONS Increased customer satisfaction by personalizing menus Increased Share Of Wallet by transforming waiting time into active involvement Redesign work processes to better engage customers Cooking class + Dining + Team-building at Food Playground eden strategy institute | 4
  5. 5. PREDICTING ORDERS BASED ON EYE MOVEMENTS KEY IMPLICATIONS Increased conversion rate with targeted on- the-spot menu recommendations Big Data analytics to evolve food menu Pizza Hut menu based on eye movement analysis 5eden strategy institute | 5
  6. 6. COOKING WITH A 3D FOOD PRINTER KEY IMPLICATIONS Lower stock value and reduced shrinkage through commoditized ingredients Perfect product standardization for franchising Possibility to ‘design’ a meal with a smartphone Open Electronics' 3D Food Printer eden strategy institute | 6
  7. 7. UPSCALING FOOD COURTS INTO FOOD HALLS Essen ‘food hall’ in Singapore gaining popularity with its upmarket yet casual ambience and artisanal fare KEY IMPLICATIONS A variety of gourmet selections in a single location High food quality at reasonable operating costs Lower entry barriers resulting in increased competition New rental yield dynamics with transformed space design 7eden strategy institute | 7
  8. 8. Novelty-seeking consumers embrace pop-up dining at Dîner en Blanc FROM EATING TO ‘EATERTAINMENT’ KEY IMPLICATIONS Maximized time and utility with multi- sensory experiences Increased Share of Wallet F&B as a new channel to develop cultural, social, and artistic dining concepts 8eden strategy institute | 8
  9. 9. BRINGING THE RESTAURANT HOME WITH PRIVATE DINING KEY IMPLICATIONS Human capital valued as assets instead of cost Reduced labour turnover with chefs enjoying greater freedoms to experiment Disrupted tenant-mix with shopless modelsHome Chef and Private Kitchen services 9eden strategy institute | 9
  10. 10. GOING BACK TO BASICS WITH UNPROCESSED FOOD KEY IMPLICATIONS New food processing certifications Emergence of innovative conservation and packaging technologies New avenues for market differentiation Use of unprocessed ingredients 10eden strategy institute | 10
  11. 11. CONSUMING TO SUPPORT SOCIAL CAUSES KEY IMPLICATIONS F&B consumption as a channel of expression to support social causes Addressing social impact beyond financial metrics to align with consumer aspirations New fundraising channels and models for NGOs UNICEF Tap Project encourages restaurant patrons to donate $1 or more for the tap water they usually enjoy for free 11eden strategy institute | 11
  12. 12. SOURCING LOCALLY WITH URBAN FARM-TO-TABLE MODELS Farm-to-Table production KEY IMPLICATIONS Decline of wholesale ingredients Rising profits of food producers Premium pricing and increase in average customer spend Growth of the urban farming movement 12eden strategy institute | 12
  13. 13. ACCESSING REAL-TIME INFORMATION WITH AUGMENTED REALITY KEY IMPLICATIONS High information symmetry challenging product differentiation Coincidence of F&B retail and quantified- self technologies Increase of digital peer recommendations as a sales opportunityAugmented Reality Software 13eden strategy institute | 13
  14. 14. ‘UBER-IZATION’ OF FOOD DELIVERY Peer-to-peer delivery platforms KEY IMPLICATIONS Generational need for convenience and instant gratification Reduced capital expenditure with on-demand P2P models Wide customer reach without directly investing in a physical distribution network 14eden strategy institute | 14
  15. 15. RECYCLING FOOD WASTE TO MAXIMIZE USAGE KEY IMPLICATIONS Reducing food costs Monetizing waste and reducing shrinkage ratio Addressing wastage and poverty simultaneously A community food- waste cooking session by Disco Soup 15eden strategy institute | 15
  16. 16. In vitro meat culture KEY IMPLICATIONS Improved food security and self-sufficiency Naturally-grown food as the new luxury Controlled production outputs to stabilize price fluctuations Making food production possible in space- constrained environments EXPLORING LAB-GROWN FOOD SUPPLY SOURCES 16eden strategy institute | 16
  17. 17. TAPPING INTO UNCONVENTIONAL TALENT POOLS KEY IMPLICATIONS Tailor job scopes, technology, work processes and space for elders Find unique and valuable capabilities among the handicapped Reduce manpower turnover and release human potential 17eden strategy institute | 17
  18. 18. Resource Optimization Mass Customization Affordable Luxury Conscious Consumption Mega Drivers • Engaging customers with participatory dining • Predicting orders based on eye movements • 3D food printing • Upscaling food courts into food halls • From eating to ‘Eatertainment’ • Bringing the restaurant home with private dining • Going back to basics with unprocessed food • Consuming to support social causes • Sourcing locally with urban farm-to-table models • Real-time information with augmented reality • ‘Uber-ization’ of food delivery • Recycling food waste to maximize usage • Exploring lab-grown food supply sources • Tapping into unconventional talent pools The Future of F&B COOKING WITH A 3D FOOD PRINTER Four key driving forces will reshape the current F&B sector, and offer new opportunities for growth eden strategy institute | 18 Implications How do we balance between providing unique experiences, and serving the mass market? What thrills can we design for everyday consumption? Can we use resources more efficiently and sustainably? How can we positively align the needs of consumers with our impact on society?
  19. 19. What we do. Eden Strategy Institute approaches the global issues of disease, poverty, illiteracy, and exploitation head-on, by formulating strategies, models, processes, products, and designs that help our clients create, realize, and sustain quantum profit in addressing these issues. We focus exclusively on empowering business strategies with Social Innovations that create enduring financial impact, such as infusing innovations in Education, developing compelling propositions for the Emerging Middle Class, creating Social Business Models and Ethical Supply Chains, serving the Silver Economy, and transforming Public Service. Eden’s Retail & Consumer Practice. Eden is experienced in Food & Beverage, Fast-Moving Consumer Goods, White and Brown durables, Travel and Hospitality, Wholesale and Retail Trade, as well as Lifestyle and Luxury products. Our work in this sector ranges from training and incentives for Trade Marketing; footfall and shelf space management for Retail Marketing; store layouts and need states for Shopper Marketing; to decision-making, and Net Promoter Scores for Consumer Marketing. Using a mix of business-to-business, consumer, quantitative, qualitative, ethnographic, neuromarketing, and analytics methodologies, we identify future trends and micro-segments, develop product pipelines, manage categories, build brands, create emotions, gauge advertising effectiveness, devise retail strategies and in-store programs, and model pricing analytics, customer loyalty, and store locations. These apply not only to restaurants, department stores, designer shops, and supermarkets, but also to airports, hotels, libraries, museums, theatres, and trade shows – everywhere people make purchase decisions., as well as the infrastructure, policies, and investments around them. We advise brand stewards on how to inspire trust and advantage with responsible labeling and reporting, discover new purchasing drivers such as healthy living or life fulfillment, infuse computational analytics in their strategic marketing decisions, differentiate their brands with cause marketing, relook at the promise of “mom & pop” channels, and redefine entire user experiences such as with ecotourism or connoisseurship. Our philosophy. We believe in the power of ideas to positively shape our world, one client at a time. Our focus is unparalleled in bringing to bear our entire senior management team, as well as the world’s foremost experts, on our clients’ most pressing sustainability issues. In turn, we elect to only collaborate with clients who are seriously committed to creating value together. Asia’s leader in Social Innovation Consulting ABOUT EDEN STRATEGY INSTITUTE 19eden strategy institute | 19
  20. 20. Thank you eden strategy institute Contacts: Calvin Chu Yee Ming, Partner Frederic Schmidt, Strategy Analyst Eden Strategy Institute T: +65 9751 5817 E: query@edenstrategyinstitute.com www.edenstrategyinstitute.com

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