What happened to catering in 2022? And what should restaurants prepare for in 2023?

2022 was the first year since covid, when the life of restaurants seems to be getting better. And in many ways you & us helped it happen. While the economy was licking its wounds, food service costs were rising, and staff were in no hurry to return to the kitchens, one could doubt that the restaurants could cope. But the support of visitors has had its positive impact.

But this is not the only trend that the food tech community is facing. BentoBox (a CMS platform that allows establishments to serve customers online) has collected data from 14,000+ restaurateur partners around the world. And here are the trends that stand out.

Mismatch between expectation and reality. Or how restaurants resurrected after the pandemic?

Although restaurant patrons returned, for much of the year, restaurants struggled to keep up with demand amid rising costs in both food and labor. Inflation was eating into the already meager profits. And no matter what anyone says, prices in the restaurant menu have risen less than their cost.

The second trend is the shortage of labor force. Despite the fact that since 2020 the salary of employees has increased by 21%, but 65% of restaurants still do not have enough employees to meet customer demand.

Internet marketing and E-commerce to reduce the cost of returning customers. It’s time to try something new!

In order not to pass on rising costs to their customers, restaurants are increasingly adopting online technologies. The use of marketing tools (mailing lists, advertising, social networks, etc.) and immersion in ecom (online sales on marketplaces and own sites) allowed us to increase customer returns at a much lower price.

• 52% of restaurants have applied new technology to address labor shortages
• 24% of restaurants have adopted new technology to address rising costs.
• Loyalty program promotion revenue increased by 74%. Income after the introduction of mailing lists increased by 8%
• Returning customers made as much as 35% of online orders (compared to 29% in 2021). And mailings with advertising brought another 11%.
• Revenue from digital gift cards grew by 9%. The average gift card sold online cost $120, but restaurant patrons used only 73% of that amount ($89). The restaurants kept the difference.
• 71% of establishments believe that the use of technology has improved the quality of service for their guests.

Use maps and SEO if you want to be found. Down with the invisibility cloak!

Unbelievable, but true, in 2022, if you don’t have a website, social networks and a mark on the map, then most likely you won’t be found. 75% of visitors search for a place for dinner using search engines. Google Maps has helped you find more restaurants than any other review platform in the industry.

59% — search engines:

55% — restaurant website

37% — third party apps

35% — social media.

The older ones Googled specific search terms, such as the name of a restaurant or type of cuisine.

Young people prefer to search for establishments by reviews, description or price, without asking specific questions.

Accordingly, those restaurants that invested in SEO, PR or took care of good advertising won the race for visitors.

Online ordering from a restaurant is no longer a luxury, but a way of development

In 2020, online orders saved establishments from total collapse. By 2022, little has changed. Yes, now you can again sit with friends at a cafe at a table, but the ability to order a dish online is an additional profit for the establishment.

As takeaway and delivery services become more integrated into everyday life, some habits and behaviors are changing for customers.

What trends are waiting for restaurants in 2023?

Trend 1: Labor costs will plateau

By the end of 2022, labor costs are rising at a slower and slower pace. Wages are expected to stabilize in 2023. Rather, establishments will still have to pay to attract workers, but in general it can be said that the industry has already moved away from the covid shocks.

Trend 2. Recession in the restaurant business

The post-COVID foodtech boom has run its course. In 2023, driven by an economic recession and inflation already on the rise, the industry looks set to experience its first true post-pandemic winter in years. Restaurants will once again have to rise to the challenge of reducing headcount, menus and service.

Trend 3. Online instead of closing the restaurant

In 2020 and 2021, almost all establishments have introduced the ability to place an order online. In 2022, this allowed to increase profits, but in 2023, it looks like it will become a means of survival again. In this case, this will not be dictated by the need of customers (to keep a distance), but by the need of restaurants to reduce the number of staff, for example. Obviously, fewer staff are required to serve such orders than to serve in the hall.

Trend 4. Soft drinks are gaining popularity

Over the past few years, the popularity of soft drinks has skyrocketed. In 2022, sales of “NA” products grew by 24%, exceeding the strong growth in previous years. They are bought by young visitors to establishments in megacities.

Trend 5. Restaurants will have to stop ignoring social networks

Social media is becoming a marketing channel that a decent establishment cannot pass by. In 2023, restaurants that have never had an Instagram account will have one; restaurants that have never thought about TikTok will download it. Although search engines remain the number one source for new visitors. Social media is fast becoming a must-have digital property and social proof for potential customers and brand advocates.

Want to test how competitive your establishment will be in 2023? Write me and I will send you a checklist of establishments.

Have an interesting project? Fill free to talk about everything in detail!