The food service industry has changed irrevocably this year. Between a global pandemic forcing so many restaurants to close forever and Generation Z entering adulthood in quarantine, the market has adapted to the “new normal” and businesses need to pivot accordingly to stay relevant in consumers’ minds.

1. 6 Restaurant Trends Shaping
2020
The food service industry has changed irrevocably this year. Between a global
pandemic forcing so many restaurants to close forever and Generation Z
entering adulthood in quarantine, the market has adapted to the “new
normal” and businesses need to pivot accordingly to stay relevant in
consumers’ minds.
The market is still changing, but the impact that 2020 has already had on the
industry will likely strengthen with time. Here are 6 trends that grew this year
and that are shaping the future of food service.
1. Online ordering
Three out of five customers order delivery and takeout at least once a week,
and ever since COVID-19, it’s proliferated even more. With little other option,
nowhere to spend their days, and grocery stores a continued hotbed of
potential infection, off-premise dining has gotten more and more popular
especially since the implementation of safety precautions like contactless
delivery options. By 2024, online ordering is expected to be a $32.2B industry,
and people in their mid-twenties to mid-thirties make up the biggest
percentage of those sales compared to any other group.
As far as third party apps are concerned, it’s unclear whether they’ll go
anywhere soon. Though some restaurants are fed up with the high
commission fees, others rely on them to more easily open delivery streams

2. and more successfully market their businesses. The apps themselves have
considered eliminating per-delivery fees in favor of flat-rate subscriptions for
customers, which some already use but others prefer not to opt into.
2. Conscientious spending
Increasingly, consumers are dedicated to patronizing restaurants that share
their values of sustainability and eco-friendly practices. They’re seeking
shared environmentalist principles, which restaurants can promote with
changes like zero-waste kitchens, plant-based menus, and other green
practices. Experiment to find out what works best for your business.
Customers also want more transparency regarding health and sanitation
measures, the net cost that led to the listed prices, corporate salaries, and
more. They’re also taking a closer look at how the workers are treated,
generally valuing fair trade practices, diversity, and living wages for
employees. People don’t want to support companies that don’t support their
workers or the earth.
3. Evolved menus
People are placing a greater emphasis on healthier living. They crave
transparency about their natural ingredients and beneficial bacteria like
probiotics. Menus are also trending toward becoming smaller and more
simplified; studies show that too much choice can actually be overwhelming
for consumers, while fewer menu items are beneficial for them and the
restaurant. It’s operationally efficient to make fewer dishes by cooking in bulk
and focusing on producing higher-quality food, and gives your staff the time
to focus on better customer service.

3. 4. Lifestyle
Restaurants don’t want to be a place you go to eat and then forget about it
the minute you walk back out the door. That’s why they’re shifting toward
strengthening their customer relationships so that their brand is part of
consumers’ identities and thus has longevity. For example, a lot of restaurants
are selling merchandise and promoting brand-based product lines on
Instagram to increase customer loyalty and retention, as well as boosting their
social media engagement. Merchandise has the added benefit of being,
effectively, free advertisement every time somebody walks around in it.
5. Reduce employee turnover
The restaurant industry has famously high turnover rates, and they’re finally
beginning to work from the ground-up to increase employee retention.
Constantly hiring and training staff costs a lot of money, so it’s worthwhile to
keep employees long-term even if it seems a little more expensive at face
value. Employees are increasingly seeking benefits like health and dental,
stability at the job, an opportunity for growth, and fair pay. Restaurants that
pay their staff members full salaries are not tipped minimum wage are more
likely to keep employees around long-term.
We’re also shifting into a post-Me To the world, and employees expect better
treatment. The service industry is plagued with sexual harassment, racial
discrimination, and management turning a blind eye to inequality.
Higher-ups need to let their employees know that they’re on their side and
create zero-tolerance workplaces, whether the perpetrator is a customer or
another employee. One effective action you can take is implementing the
three-light system, invented by Chef Erin Wade for her restaurant,
Homeroom: Yellow means a warning that things feel off, where the worker

4. can request additional supervision or a new table assignment if they want;
orange is for questionable behavior like comments or gestures, where the
manager takes over the table automatically; red is for repeated “orange”
behavior or an escalation into more overtly inappropriate comments and
touching, where the customer gets immediately escorted from the premises.
It’s important to remember that these need to be on a zero-tolerance basis, so
staff members never have to justify or explain their color warning. When they
say it, it just is.
6. Technology takeover
Restaurant technology has significantly advanced in the last few decades,
and now customers expect a certain level of automation, self-service and
efficiency. Managers increasingly prioritize all-in-one smart hubs that are
quick, efficient and cloud-based technology. At eatOS, our Point of Sale
system streamlines your operations and boosts your bottom line, so schedule
a demo with us to learn how we can make your restaurant run more
efficiently too.
All of this and more is changing, and will likely continue to grow in the
coming months and years. Technology, customer prioritization of
conscientious spending and online ordering, evolving menus and more will
continue trending upwards, along with other features we haven’t even seen
yet that will follow the same pattern of automation and increased
environmental and worker support.
For restaurateurs, it’s important to remember that Gen Z is aging into the
marketplace, and they should cater to them just as much as Millennials and
older generations. Take time to research what social media Gen Z spends
time on, the pricing structure they can afford and their values, like fast-casual

5. dining and exploring an expanse of new flavors and different cultural cuisines.
The restaurant industry is evolving and it will continue to shift as the rest of
the year brings new developments and new technologies with it.