7 Foodservice Predictions That Could Shape C-Stores and Restaurants in 2023

CHICAGO — The U.S. foodservice industry will continue to face significant challenges in 2023, according to a newly released Technomic whitepaper titled What We Foresee for 2023.

Restaurants still face significant challenges, in large part because of continued effects of the pandemic and the threat of a recession, CSP sister Technomic said. However, attention to menu trends and the blurring of channels could ease the strain.

“The industry is expected to face some stumbling blocks going into 2023, led by weakened consumer sentiment and ongoing pricing difficulties,” said Joe Pawlak, managing principal within Technomic’s Advisory group. “But as the year progresses, the situation is expected to moderate, and the industry will benefit with stronger sales and traffic.”

Click through to read highlights from the report …

The foodservice industry’s recovery is up against “significant roadblocks,” Technomic said, including inflation and federal interest rate hikes shaking investor confidence. “There is reason for optimism in the coming year, however, as any recession is expected to be relatively mild,” Technomic said.

The restaurant industry might have been premature in demoting dining rooms, as evidenced by consumers’ gradual return to on-premise occasions. “Years of social distancing and restrictions have created a pent-up demand for an experience beyond a simple meal, while workers’ reappearance to offices, increased travel and lengthier time windows for pickup at busy units are also making placing an order and eating on-site more attractive,” Technomic said.

Expect comforting, high-profit-margin grain products, such as breads and pastas, to do well in 2023. “Operators will harness the versatility of flour by innovating with traditional dishes, such as English muffin pizzas, focaccia French toast and fried lasagna, and global options, including Jamaican coco bread and Sardinian pane carasau flatbread,” Technomic said. 

“The playing field across limited service is increasingly evening out,” Technomic said, due to the value gap shrinking for quick-service and fast-casual restaurants because of rising food costs and inflation-fueled consumer price-sensitivity. “Watch for limited-service operators to step up efforts to distinguish their brand through refreshed decor, signature menu introductions, enhanced loyalty programs and seamless service.”

Pickling and fermenting preparations are hot right now and promote ingredient preservation and health connotations and allow for unique culinary experimentation. “Expect pickling to extend to everything from proteins and french fries to herbs and nuts,” Technomic said.

Big chains were confronted with employee demands around more predictable schedules, better benefits and higher pay as labor union activity grew in 2022. “More power falling to employees will continue next year as union negotiations play out and legislation at the state and local levels establish new baselines for hospitality workers, with wages as high as $22 per hour proposed in California,” Technomic said.

In 2023, pink will be the new black. “In the fun, nostalgic realm, expect bubblegum flavors, Funfetti and new maraschino infusions to surprise and delight,” Technomic said. “This happy, photogenic color for food and drink also denotes antioxidant-rich health benefits in some cases.”

Click here to access the full Technomic white paper.