Five Food and Beverage "Trends" That Are Here to Stay

Lou Trope, LJ Trope & Co. LLC

The last few years have brought consequential change to the food and beverage industry from the proliferation of mobile ordering to the unanticipated growth in hourly wages to the introduction of AI. As it has many times in the past our industry pivoted and adapted to the changes in the business, economic, and social environment. While many were nimble to shift their mindset to adjust their business others remained steadfast in holding on tight to those tried and true practices that have worked for ages. 

Every year our business changes and evolves. We learn about new ingredients that are becoming more infused into menus such as Ube, Kombu, Milk Tea, Calabrian Peppers, and Filipino cuisine. As important as this is we want to take a moment to talk about some things we are seeing on a more macro level that will become part of the lasting fabric of our industry. 

Low and No Cocktails

First off, we need to treat this category with a new level of respect. This is not Shirley Temple’s or sweet fruity “mocktails”.  When done right these are complex, layered drinks with flavor, presented beautifully in an elegant cocktail glass. The words “mocktails” and “virgin cocktails” need to be removed from all menus. These terms are derogatory. Low and No Cocktails need to be given a place on the menu that showcases crafted beverages.

At a recent beverage conference, there was some debate about whether establishments needed zero-proof cocktails. The data is very clear, a 2022 study by Statista found that 27% of Gen Z adults increased their consumption of non-alcohol drinks in the past year. Similarly, 21% of Millennials drink no alcohol cocktails. 

With an increased focus on a healthy lifestyle and the health risks of alcohol, more demand for healthier and more sophisticated non-alcohol cocktails, and a drastic improvement in the quality and availability of non-alcohol products this segment grew by 9% in 2022 reaching a value of $11B. IWSR is projecting that this category can hit $31B by 2027.

There are many exceptional products available including Lyre, Seedlip, Ritual Zero, Spiritless, and Curious Elixirs just to name a few are making this category vibrant and exciting. Non-alcohol beers like Athletic Brewing Co, Brooklyn Brewery Special Effects,  Lagunitas IPNA, and Heineken 00 are just a few NA beers on the market that run from Lager, Hazy IPA, Wheat, and Stout all deserve some recognition. In addition, NA wines continue to grow and prosper. 

Suppose you are still questioning the growth of the zero-proof category and are reluctant to give it a try. Let’s do some math. Let’s say you are currently selling 100 soft drinks and iced teas a day at $5. Now just imagine if you can convert 25% of those sales to a zero-proof cocktail for $10.  That’s an additional $125 in sales per day which equates to an additional $46,500 per year—something to think about. 

Culture Matters 

No doubt the rise in wages over the last few years has made a major impact on the hospitality industry. In some cases, employees have knowingly entered into a bidding war getting wooed by competing businesses with enticing starting hourly wages. Many people have left the industry after the pandemic after doing a life-work balance assessment. Because of this it has put new stress on already small profit margins, put pressure on wage compression, increased turnover, and has forced many organizations to rethink their labor pool. 

But for others, they have motored on. While one business is severely lacking employees to cover minimal shifts another is fully staffed and thriving. Why? They are both offering the top of the local entry-level wage. They both run similar businesses. 

The simple truth is culture. It has always been culture. Now more than ever culture matters. 

In some instances, managers are determined to “get more out of them” because they are paying a higher wage to line-level employees. Why?

Although pay will always be a top factor in someone pursuing or staying at a job more and more people want to work for a company that has a culture and values that align with their own. They want to feel like they are part of something bigger. Whether it is through sustainability efforts, social responsibility, or community activism these are now important aspects of the work experience. 

In addition, we have all learned that having a work-life balance and being valued for the work you do is critical in today's worker's evaluation of the employee value proposition. Long gone are the days when employees are expected to work an extreme amount of hours as a rite of passage just because. Of course, in F&B there are long days but we must think differently on how the work gets done if we want to continue to attract talent into the industry.

Like it or not, culture matters, people want to be respected, valued, and heard. They want to be part of something that provides more value than just a number on the P&L statement. These are not mutually exclusive. When having an engaged and motivated team service and product are always a little better, which leads to better revenue and ultimately increase in profitability. 

Fusion Evolution

Fusion cuisine is often a bit of an anomaly. Is Wasabi Mashed Potatoes a thing? Fusion cuisine is not new, when done right can be an amazing exploration of new ingredients that come together in a new inventive way that can be mind-blowing. But when done wrong with a lack of experience and little connection to the authentic use of the  ingredients it can be a disaster. 

Just think of all the different versions of fusion cuisine that have been with us for years French | Vietnamese, Peruvian | Japanese, Texas | Mexican,  Korean | Mexican, Hawaiian-Native Hawaiian | Polynesian | Asian | American,  Creole-French | Spanish, African American | Asian Fusion-Chinese, Japanese, Thai, Vietnamese. Needless to say, these evolutions have created some of the most amazing culinary combinations. 

According to the US Census Bureau, the United States is becoming increasingly diverse with non hispanics projected just to make up 58.3% of the population by 2060. In 2020, 18.5% of US households were multi-ethnic or multi-cultural, this number is projected to grow to 32.4% by 2060. 

As we see the country continue to evolve with more mixed ethnic families the introduction of foods from other parts of the world will naturally be introduced into the home. These are the foods of their homeland and traditions. As families grow and evolve there will be a natural blending of flavors, cultures, techniques, and traditions that will bring forward new and inventive flavors, ingredients, and ideas. Who would have thought that Korean Tacos would become a core component of thousands of menus fifteen years ago? 

As more families embrace their cultural origins and create new traditions that are a reflection of their family composition more and more flavor combinations will emerge. Merging culinary cultures from China, Mexico, the Philippines, Cuba, Vietnam, Brazil, South Korea, and the Dominican Republic can produce any number of amazing new culinary combinations. 

Today’s chefs whether born in Michigan, New York, California, Honduras, Cebu or Madrid are all lifelong students of the game. The kitchens have always been a cultural melting pot with family meals being something unique and special. The passion and pursuit to find the next best ingredient or technique is at a fever pitch. Chefs are continuously on the search which enables the mind to open up and explore new possibilities.

Chefs continue to embrace the ethnic diversity around them combined with the pursuit of regional ingredients there will be a new emergence of what we think of as “Modern American” cuisine and it will be amazing. 

Regional for the Win

More and more guests want to know that their food has a regional connection. Of course in large multi-unit operations economy of scale needs to be leveraged for the best product at the best price for a substantial portion of the menu. However, this shouldn’t negate the importance of having a regional connection on at least some portion of the menu. 

Regional beers, spirits, and coffee roasters will always be a draw for guests. Independent operators should do everything they can to work within the confines of their local community to support other businesses. Even the biggest of operators can take a thoughtful approach to regional influence and sourcing. 

Guests, regardless of the size of the operation, want to have some sort of regional experience, particularly in destination locations. Of course, there are the staple items on the menu but these can be supplemented with regional-inspired specialties. If you are a strong upper casual ethnic restaurant the regional connection can be through your sourcing strategy. In the end, those menu items that have a regional connection always perform well. 

Learning from AI

There is no doubt that AI will change the way we operate our businesses and life in general. Rightfully so some people are extremely suspect of AI and refuse to see its value. Others are fearful that AI is going to take their job. No one can predict the future but one thing is for sure those who do not embrace AI may end up losing their job to someone who does. 

AI has so many applications that can make us smarter and faster from refining a memo, developing marketing ideas, logo and naming ideas, creating art and music, and doing lightning-fast research. It is not the end all for everything but think of it as having a brilliant assistant who is there 24/7 and can answer almost any question. Most of the things that AI produces take a human hand to refine and adjust but in many cases, it can be the catalyst for a new idea or refining a project that you are stuck on. 

Do not dismiss AI, open yourself up to new possibilities of operating your business differently and evolve with the times. I used AI for much of the research on this article and had it correct all the grammar and punctuation. 

You may not agree with all these assumptions but rest assured change is upon us. 

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