We all know foodservice lost and retail won during the COVID-19 pandemic.
But while the economic losses were devastating to many restaurants and institutions, foodservice had one built-in advantage: People were used to buying it online and choosing pickup or delivery already.
And while online grocery shopping skyrocketed in 2020, it's dipping again in different segments as shoppers return to brick-and-mortar stores, according to Brick Meets Click, the grocery analytics firm that conducts a monthly shopper survey with Mercatus, a grocery tech provider.
Most shoppers are still not bananas about buying fresh produce online.
But we're all learning.
The most glaring example of foodservice tech's influence is QR codes. Placed on packaging, these codes weren't catching on until two things happened:
- Smart phones updated their cameras to automatically detect QR codes so that people didn't have to download and click on a QR code app. That extra step stalled a lot of people. Remember, when asking people to do something, it has to be as simple as possible.
- The pandemic motivated people to avoid human contact and use technology instead. Restaurants started using QR codes at their dining tables for contactless ordering, and sometimes even paying. More than two years later, many restaurants still have abandoned paper menus, opting for QR codes on tables for diners to look up the menu on their phones.
“Before, it was about reducing touch and reducing exposure to infection. Now, because QR codes go to online menus, it's just easier to make changes to the menu,” said Greg Rowe, CEO of Hardie's Fresh Foods, Dallas, Texas. Hardie's supplies restaurants, especially multi-units.
Now, retail produce has ramped up its use of QR codes.
When you take a photo of a QR code at a restaurant, like Egg Shop in Manhattan, with your cell phone, the link automatically pops up. Photo: Amy Sowder
Restaurant delivery apps that started incorporating groceries served as a framework for new grocery delivery apps or for grocery retailers' own store apps for online ordering.
The decision of pickup or delivery is no longer exclusive to restaurant food.
From rides to groceries
Originally a rideshare app and then also an app for restaurant food delivery, UberEats partnered with convenience retailer bp — yes, the gas station — to offer groceries to users, according to a news release. Those groceries include food-for-now options, as well as staples, fresh produce and ready meals.
“We've seen how the pandemic has accelerated customer demand for delivered convenience, and this partnership will allow us to scale up quickly on the Uber platform,” said Emma Delaney, bp executive vice president of customers and products.
And for the first time, bp will be able to offer delivery options to its existing customers on its BPme app by the end of 2023.
Grubhub, Doordash, Postmates and Seamless are some top restaurant delivery apps that changed what's commonly thought possible, making food at your doorstep as easy as a few finger taps.
Apps, AI and robots
Gourmet Garage started as a supplier to high-end restaurants and chefs in New York City, but today has four grocery stores with delivery options, too, for customers to “shop like a chef," the company says.
Also in the Big Apple, Baldor Specialty Foods, which primarily supplied restaurants before the pandemic, long had the technology in place with its online procurement tool for wholesale buying. When indoor dining was banned to curtail the spread of the coronavirus, the company redirected its food wherever possible, partnering with retailers trying to keep up with skyrocketing demand — and offering direct-to-consumer groceries.
Also, the Baldor Bite 2022 trade show returned with a bang, said Michael Muzyk, Baldor president. “It's the biggest one so far,” Muzyk said. The April 26 show drew 3,000 people, an encouraging spike from the 1,750 at the last show.
Pent-up demand from consumers should help restaurant sales in 2022, but labor shortages and price inflation mean profits won't necessarily follow suit.
A few restaurants are experimenting with robots. Ghost kitchens — off-site, delivery-only kitchens for restaurants — aren't widespread yet, but 50% of quick service operators expect it to grow in 2022, according to CNN Business.
These foodservice workarounds sound similar to the retail industry's proliferation of dark stores and fulfillment centers.
Also, the use of artificial intelligence in foodservice should increase.
In January, Checkers & Rally's secured a deal to use Presto's AI-based voice ordering for corporate-owned, U.S. drive-thru locations, according to a news release. With 80% of quick-service restaurant sales coming from drive-thru, labor efficiency is top of mind. The technology improves order accuracy and increases upsells.
AI is already entering produce at retail. Matt Schwartz, co-founder and CEO of Afresh, partnered with Albertsons Cos. in January to offer its AI platform for fresh-produce forecasting, inventory, ordering, merchandising and operations.
We should all see a more prominent intersection of technology, sustainability and talent.
Goodr, an Atlanta-based portal and app created by Jasmine Crowe, leverages intuitive technology and nationwide logistics to divert what would be fresh food waste from large venues, colleges, airports and businesses to those who need it most through nonprofit organizations.