Foodservice Trends 2020 - JLL
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Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04 State of the Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 Mega-trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08 'Future Forward' vs 'Back to Basics' in the Americas . . . . . . . . . . . . . . 10 Time For Better Business in Europe 16 Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Knowing MENA, Knowing You . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 APAC - A Battle Between . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Global Movements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 A.I. in Foodservice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 About JLL Foodservice Consulting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 JLL Foodservice Consulting Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 JLL Global Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
4 Introduction Top European countries for cashless payment transactions (£BN) 5 UK 21.27 Welcome to the Foodservice Trends 2020. France 18.96 Throughout 2019, JLL Foodservice Consulting have in quality dining occasions. This is especially Germany 17.99 been working on global projects that are pushing the the case in the Fast Casual Sector, with revenue likely boundaries of foodservice, leisure and place making. to reach $17 billion by 2024 in Europe alone. Netherlands 6.45 From mega projects in the Middle East to some of the best Food Halls globally, these projects are at the This year’s book explores the areas behind the global F&B market growth. Sustainability and conscious Spain 6.28 “Your body forefront of finding solutions to global challenges. We have drawn on this experience and gathered together eating are a constant theme with plant-based Italy 4.79 is not a diets on the rise in both the Americas and Europe, insight from our teams across the world, to bring highlighted by the rapid growth of the Beyond Meat Sweden 3.9 temple, it's an together a summary of the most exciting trends in foodservice that we expect to impact the industry and Impossible Meat businesses. Poland 3.87 amusement in 2020. Technology is as prominent as ever in the foodservice industry as we enter the next decade. Belgium 3.44 park. Enjoy As our 2018 and 2019 publications have shown, the ride.” Source: European Central Bank 2015 This is seen in the maturing delivery market in some trends continue to last and are so strong that Europe, operational automation in the Americas and Top 500 F&B Brands - Sales growth by segment they evolve over and over rather than making room Anthony Bourdain in APAC as part of the dining experience. Speaking of for new ones. Others disperse in various ways across Annual Sales Change the Experience Economy, ‘Dinertainment’ has been multiple sectors. booming in North America and Europe for some Fast Casual 8% 9.8% Despite slowing restaurant growth in the USA, and time, however, it is still growing in the MENA region, well publicised multiple brand failures in the UK, particularly as countries like KSA roll out their 2030 Fine Dining 3.1% 3.5% F&B is still booming. As you will see in our State of cultural reform proposals. the Market section, the F&B market is growing across Quick Service 3.1% 3.5% This publication provides an overview of some of the the world. With populations increasing and, at the key trends and the operators taking them forward Midscale 2.2% 2.2% most basic human level, the simple fact is that we across the world. We hope you enjoy it, and if you all have to eat, this growth will continue. At a more experiential level, growth will come from an increase want to know more, please feel free to get in touch. Casual Dining 1.1% 2.1% Your JLL Foodservice Consulting Team Top 500 total 3.3% 3.8% One-Year Sales Growth Five Year Sales CAGR Source: Technomics (2019)
4% 7% 6 7 4% 4% 3% 3% 3% 3% 3% 5% 3% 3% 3% 6% 6% 8% 5% 3% 3% 3% 7% 3% 3% 10% 2% 3% 3% 3% 10% 4% 1% 4% 3% 2% 3% 3% 3% 3% 3% 3% 3% 2% 3% 9% 2% 5% 3% 2% 4% 4% 4% 3% 4% 5% 3% 3% 4% 6% 2% State of the Market 4% 8% 7% 4% 3% 3% 3% 3% 3% 3% 5% 4% 3% 2% 7% 7% 5% 6% 6% 7% 5% 5% 8% 6% 6% 9% 5% 5% 3% 1% 6% 11% 7% 6% 6% 8% 9% 3% Americas 1% 7% 7% 7% Africa & Middle East 7% 6% 7% 8% 6% 6% 5% 6% Europe 6% 3% 2% APAC 6% 7% 6% 8% 5% 4% Foodservice Market Size Growth (%) 2018-2022 7% 6% 7% 21% 8% 7% 4% 4% 0-4% 4-8% 8-12% >12% 8% 6%
8 9 Mega–trends Experience Economy Supply Unchained The aspiration of experience Collapsing barriers over ownership ities Sourc between consumers Regional insights bm odd este na no nc e| and production t |S Cl 1. Dinertainment en For the 2020 edition of the Foodservice Trends book, we have looked 1. Sourcestenance ea m Food & leisure partnerships ain nG at the foodservice industry across four key regions - the Americas, Producer-led food ert ree concepts Din APAC, Europe and MENA. 2. Snobmoddities n Enhanced foodie products & services 2. Clean Green In a collaboration with JLL foodies around the world, we have Sustainable & Carbon footprint explored market drivers, identified which of our foodservice mega healthy eating Robot trends are still leading the way regionally, compared maturity levels and | i and collated specific, local examples of foodservice innovation across the various regions. dem Foo | n Turn the page for more… Conveni-Tech Better Business o df od or Fo The demand for convenient Where purpose and go o d and superior services profit come together Fo o ix d s ta g 1. Food on demand ram | P i c k ' n m 1. Carbon footprint Food anywhere and Waste not, want not everywhere 2. Food for good 2. iRobot Society matters Automation in foodservice Youniverse The desire to be seen & served as unique 1. Foodstagram Social media food stars 2. Pick 'n mix Curated food stalls & market halls
10 Estimated Annual Worldwide Supply of Industry Robots 11 (000's of units) 630 294 60 20% 'Future Forward' vs 'Back to Basics' 2009 2016 2021 in the Americas Growth of plant-based protein shipments to In the Americas, led by the United States and in move from being a fringe topic to more mainstream foodservice outlets Canada, there is a trend across the foodservice concerns, people are changing their eating habits industry towards increased automation in all and demanding more from corporations, restaurants Source: IFR World Robotics 2018 Source:NPD Group areas of production. The drivers behind this in the and retailers. US, in particular, is the continued slow growth in Whilst the likes of Beyond Meat and Impossible the restaurant industry combined with increased pressure on margins. In an industry which already Meat have been around for a while, they are Density of Robot Workers per 10,000 employees in the now becoming commonplace on menus. Major Manufacturing Industry survives on thin profit margins, increasing labour chains, like Burger King, TGI Fridays and A&W have costs are challenging operators as various states are 129 incorporated plant-based ingredients on their passing new minimum wage laws, and the topic is Switzerland 97 menus, emphasising the growing demand for even being debated federally ahead of the 30% sustainable options and new players, like Rebellyous, China 2020 elections. are extending the product range. 200 US 85 global average The industry clearly recognises that automation has a This high street demand is reflected in other areas 139 role to play in foodservice going forward as a cheaper Finland too with employees and students asking for more supplement to labour, especially in fast food world, 161 plant-based options and for greater transparency on 230 190 Canada and despite the higher up-front investment the use of 322 Italy of Brazilian citizens are food sourcing and food waste in their workplaces 710 Denmark 137 automation is increasing significantly. Sourth Korea Germany France opting for more vegan and universities. 157 At the same time, on the consumer side, conscious 172 foods. The Brazilian plant- So can operators make best use of their savings 200 Spain consumption has been a trend in major cities for 658 308 The Netherlands based market now has a on the labour line to allow for investment in US years, but is now impacting non-urban cores and Singapore Japan potential reach of 60 million better ingredients? interested eaters. wider sectors. As global threats to our supply chain Source: Statista Source: Good Food Institue
12 13 Vegan at Work BreadBot Vegan Leaders in Corporate Despite its small Management (VLCM) is helping footprint, this vegan employees influence machine can do the their leadership to advance work of a full plant-based initiatives. About bakery as it mixes, one-third of VLCM members work blends and cooks at Fortune 500 companies. bread dough. In practice Mean Greens Café This dining hall in the University of Northern Texas, features a vertical farm offering healthy options for students looking to eat more sustainably. Image source: New Wave Food Image source: UBCEAC Image source: SPyce Image source: Happy Cow Tysons Foods 2.0 I'm Lovin’ Tech Robotic Restaurant Veggie’s on Tour The world’s 2nd largest processor of chicken and beef has invested McDonald’s spent nearly $1bn, in Boston’s fully automated ‘Spyce Kitchen’, The Happy Cow app features a in New Wave Foods, to create a 2019, adding ordering kiosks and received $21m to fund expansion in 2020. database of vegetarian & vegan plant-based version of shellfish. other tech in the US, and globally. friendly restaurants across the world, giving travellers the option to stick to a plant-based diet while away.
14 15 Expect to see more of… CircularEni This circular, 3.10m tall experimental juice bar is topped by a dome filled with 1,500 oranges. When an order is placed, the machine turns the orange peel waste into 3D-printed bioplastic cups. It was developed in partnership between a design and innovation firm as well as a global energy company. The CircularEni is an example of circular design that is meant to demonstrate how people can consume far more sustainably by using technology.
16 17 Restaurant Platform to consumer delivery to consumer delivery 90% $8,638.3 2017 $3,145.1 Time for Better Business in Europe $16,763.2 2023 $7,896.6 In Europe, it definitely feels like climate change is a customer-centric solution. As an example, the EU member states will have to achieve defining issue of our time. Businesses, governments growth of the food delivery market shows no sign Revenue forecast for the Online Food this collection target for plastic bottles and consumers alike are listening to the science and of stopping. Over the last year Deliveroo’s $575m Delivery market in Europe from 2017 to by 2029 and contain 30% of recycled taking action. fundraise was backed by Amazon. Dutch delivery 2023 (in million U.S. dollars) material by 2030. giant Takeaway.com proposed a merger with JustEat, In March 2019, the European Parliament voted to ban and rumour has it that UberEATs is about to enter the Source: Statista 2019 Source: European Parliament single use plastic in all EU member-countries by 2021, German market. including plastic cups, containers, straws and cutlery. Online searches, per country, across Europe since 2014 This legislation has already caused foodservice On top of this growth, we are seeing increased operators to react with companies like Starbucks and innovation within the food delivery market that 700% Pret setting themselves significant targets to reduce is making waves and opening up potential new 600% plastic and improve other processes. markets for operators. Examples include FeastHQ who are focusing on the late-night sector, delivering 500% Across Europe the number one reason given for between 11pm and 5am and Paris’ PSG Football consumers exploring a plant-based diet was ‘a Club who are partnering with Deliveroo to trial 400% concern for the environment’. With the laws forcing customers ordering food direct to their seats. change and customers demonstrating support, 300% Elsewhere in stadiums, SeatServe has now arrived we expect to see operators being pressured by in Liverpool from the States again using technology, 200% consumers into creating and demonstrating better cashless payments and service to the seat to provide business practice. The European F&B Market is about a ‘frictionless experience’. We expect the rise of 100% to make its most significant move in stamping down delivery to continue, and in fact, we believe it will be on carbon footprint. 0% enhanced further as self-driving technology, such as um Be ia De nd ey er e y ine Sw rk Ge s y Be d itz a ain e Po K l ds Ro ia en ria Az nia n Bu y c ga ar u an Europe’s first self-driving delivery robots by Starship Sw stri nc rb lan l U ija a rk Ne ee Ita ss lar la lan ed ra lga ng Whilst sustainability is stepping up in importance lgi nm Sp rtu a Se rm Fra Tu ba Ru er Gr Au Po m Uk Hu er Technologies are integrated further into th across the foodservice industry, so is convenience, -100% and often it is tech that is able to provide the the experience. Source: Vegconomist/Ceuta Group 2019
18 WasteWatch Work Shake for Champagne 19 Sodexo has teamed The Virgin Voyages Sailor App up with Leanpath to allows cruise guests to use their create the WasteWatch mobile, to order a bottle of programme, which Möet Chandon Impérial, to be could reduce food delivered anywhere on the ship. waste by 50%, by 2025. They also aim to cut food waste at 3,000 In practice locations worldwide. If Carlsberg Did Paper Bottles… Danish brewing company Carlsberg are developing prototype paper beer bottles. This is part of the company’s wider aim to achieve zero-carbon by 2030. Image source: KFC Global Image source: Starbucks Image source: Guardian Cluck Off Plastics The Last Straw Fresh, Customised Delivery Laser Printed Labels KFC are aiming to cut all plastic-based, consumer-facing By 2020, Starbuck’s new sippy Fast Casual brand, Sweetgreens, has received Dutch company, EOSTA, uses laser packaging by 2025. In place of cup design will phase out plastic $150mn in new funding to update and expand stamps as an alternative to plastic plastic, they will be investing in straws, saving the use of 1bn their delivery program, Outpost. labels. They are already used in Holland, recoverable or reusable materials. straws per year, worldwide. Germany, UK, Austria and Sweden.
20 21 Expect to see more of… 'Dark Kitchen' Investments This investment management juggernaut Blackstone are backing the dark-kitchen trend, which is increasing as a reaction to the F&B delivery boom, by investing €8bn in a portfolio of warehouses and dark kitchens throughout Europe. Image source: Blackstone
22 23 $2.1 $2.5 trillion trillion Knowing MENA Knowing You Foodservice in the MENA region is a tale of two, (despite remaining infrastructure challenges) 2025 2030 very distinct, realities. On the one hand is the this region has become an area of strong interest Arabian Peninsula, whose wealth and desire to for many international foodservice brands. The Evidence of a societal shift through festivals Consumer expenditures in Africa are expected become a global destination has created numerous economic growth has led to pockets of foodservice like Ultra coming to Abu Dhabi for the first to rise, driven primarily by a growing middle opportunities for higher-end, local and international innovation in places such as Lagos, Cape Town time every in 2020. class population brands. On the other hand, there is Africa, which is and Nairobi. beset by numerous development challenges, in part Source: Whats on AE 2019 Source: Brookings 2019 Many Africans are keen to redefine narratives due to political turmoil, under investment and often surrounding the continent. This has led to the ‘green simply because it’s potential has been ignored… but, shoots’ of the sourcestenance trend emerging within this is changing. the region. A renewed sense of pride means that Industry revenue of "restaurants, bars and canteens" in South Africa Dinertainment is not new to the Gulf region, as operators are turning towards indigenous, local 2011-2023 (in billion U.S. dollars). evidenced by the many celebrity chef appearances produce for inspiration, to ensure African cuisines and Escape Room awakenings in the last two years. receive the same attention as others. Staying true 8 6.7 However, the Kingdom of Saudi Arabia’s 2030 reform to the ‘Sourcestenance’ trend, the early days of 7 6.52 6.09 6.31 5.83 Amount in billion US dollars proposals focused around a variety of lifestyle, leisure ‘Dinertainment’ in South Africa saw the 6 5.55 4.93 5.25 and experience led destinations, indicate that the pop-up of Food Clubs such as The Third 5 experience economy will remain a key trend. Culture Experiment where guests really get a chance 4 3.89 3.44 3.5 to connect with both the Chef and the food. At the 3.18 3.05 Meanwhile in Africa, the market (except for South 3 other end of the scale, global hospitality giants like Africa & Egypt) is significantly less mature and in the 2 Hilton are expanding their portfolio and brands in the early development stage. However, with a growing 1 region, whilst also engaging with local producers to middle class and increasingly more opportunities 0 make tourism more sustainable. 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source(s): Statista, Statistcs South Africa; ID424542
24 25 Insects For All Gourmet Grubb is opening South Africa’s first all-insect restaurant. The South African Hilton Northolome, Seychelles company hopes to encourage Hilton will invest in a people to eat more insect local hydroponic farm and based products. sustainable farming practices, cutting imports by 40%. In practice Hilton Transcorp Abuja, Nigeria Hilton have partnered with ACE Charity on its Business Empowerment Program for Women (BEPW) to provide skills and training opportunities for young women, saving around 50% on sourcing costs. Image source: TimeOut The Wavehouse L28 Culinary Platform TimeOut Market, Dubai Located within the Palm Atlantis This restaurant in Tel Aviv provides new This 30,000ft2 Food Hall is set in Dubai, this space seamlessly chefs with a six months residency, a to open at Souk Al Bahar in combines leisure with F&B, Restaurant Manager, marketing and the Downtown Dubai at the end of creating a family friendly hyper-local sourcing via a roof top farm. 2020, featuring 16 local chefs, 3 entertainment space. lounges and 670 seats.
26 27 Expect to see more of… ‘LMNTS’ This new 3D dining experience, located at the Dubai World Trade Centre, features a 5 course meal which is inspired by each of the five elements: Void, Fire, Water, Air and Earth. The restaurateurs use the technology of 3D mapping, optical illusion and sound to tell a story which brings each dish to life. Image source: Caterer Middle East
28 29 40% APAC - A Battle Between … As anywhere in the world, dining across the Asia have been at the forefront of integrating these trends. of consumers are willing to pay Pacific region is no longer simply about grabbing Much like everything else in this world, we have for high quality or premium Starbucks reserve in Shanghai, in their first 8 weeks products, opening the doors a bite to eat. With this generation’s increasingly seen an evolution of these markets into unique food sophisticated palates and their hyper awareness halls, where diners have a wider choice of food & of operations, is selling, on average, twice of what further for speciality products of technology and social media, people are drink options in an exciting yet casual environment a traditional Starbucks store in the US would make and ingredients. looking for a meal that not only tastes good, but at an affordable price. With chain eateries becoming each week in just one day. one that is unique, memorable and even has a mainstream and abundant, food halls offer a fresh Source: Digiday Source: Beverage Daily sense of adventure. alternative to restaurant-goers, all under one roof. They also enable a quick bite in a nicer environment, This consumer demand has created an exciting faster than in restaurants and better than in typical range of foodservice offers that provide some great Fast Food units. examples of the Dinertainment and Snobmodities trends. In order to stand out in the highly competitive Whilst the above trends are certainly changing dining scene in Asia, restaurant operators are going above and beyond to create extraordinary the restaurant landscape in the region, it must also be said that demand for healthier food, more 65% encounters for their customers. These range from transparency in sourcing and sustainability is the simplest , “home dining” clubs up to the most complex restaurants using 3D printing technology becoming increasingly important across APAC and driving a lot of change and innovation. Snackification and high levels of menu customisation . The Asian industry’s favourite buzzword in 2018, of consumers in the APAC region It will be interesting to watch how the battle between with the APAC snack market forecast to grow at say that they are either always or Food markets, from the traditional, hawker centres mindful eating and the desire for experience will almost 6% CAGR between 2018-2023 as busy often influenced by health and in Singapore, to the fresh fish markets in Japan and shape the market. consumers seek a quick fix. wellness in choosing what they wet market stalls in Hong Kong, which have long eat and drink. been an integral part of dining in the APAC region, Source: Mordor Intelligence Source: Just-Drinks
30 JUST Dining with Fireflies 31 A plant based egg Wanghinhoi, Bangkok, is trying company located to simulate a natural ecosystem in Hong Kong and featuring a firefly garden. The Singapore. About 250 egg menu rotates every 4 months sandwiches were sold out around the theme of fire, earth, in 30 minutes of air and water. its launch. In practice Image source: Meituan Image source: JUST Meituan China’s biggest food delivery company, is trialing its unmanned, stair climbing Hot Pot Dating robots in offices and hotels across A hot pot restaurant in Hubei Province, China has taken social media by Beijing and Shenzhen. storm because of it’s one of a kind dining experience. The restaurant is divided into an eat-alone area and a dating area. In the dating area, men sit on the left and women sit on the right, separated by a removable wooden board. If both diners want to get to know each other, they can press a button on the dining table that moves the board to allow them to eat together. Could this be the future of dating? Image source: Wagyumafia Image source: VCG Image source: NG SOR LUAN Wagyumafia The popular yet highly exclusive SookSiam Unmanned Stores members-only restaurant restaurant, located in Tokyo. The experience Themed as a floating market at Singapore brands Octobox, OMO features co-founder Hamada’s ICONSIAM, SookSiam features a wide Store and Pick & Go announced signature stare at the camera as he range of local specialities, surrounded by plans for new unmanned serves dishes to his customers, creating unique food stalls and a manmade canal. convenience store concepts, that the ultimate Instagram moment. will be launched by 2020. Image source: Wanghinhoi
32 33 Expect to see more of… Deliveroo Food Market, Singapore Deliveroo's 3rd site in Singapore, named Deliveroo Food Market, is considered an upgraded 'Editions' concept. Set across 3,000ft2, Deliveroo Food Market houses 10 kitchens and a dining space that can accommodate for up to 40 people, making it the “largest dining site globally for Deliveroo”. Image source: Deliveroo
34 Global Movements 13.1% Eastern Europe 35 21.2% Over the past year at JLL Foodservice Consulting we have been working with a 8.2% number of brands who are looking to expand into new markets. This support ranges from working with concepts to identify the international markets that best North America Western Europe match their brand, to then working with operators who have chosen a specific country for expansion providing support in preparing the strategy for market 5.3% entry and strategic growth. Asia Pacific With every passing year, it seems like more and more foodservice brands are looking to expand their horizons and take their chances in new markets and the 6.8% search for suitable local franchisees in new markets seems to be never ending for some brands. Middle East and Africa The reasons for expansion are always founded in growth, often driven by investment from private equity. For many brands, international expansion is a key part of their “end game” and they are often looking overseas well before their Latin America home markets are saturated. For others, it seems that overseas expansion often 5.2% comes at a point where they feel that organic growth in their home market is starting to slow. 19.1% As a Landlord, introducing a new international concept to your scheme can be a real coup and, if the offer is right, it can create a strong buzz in both traditional Australasia and social media, driving footfall along to join the queue that stretches around the block for the new “best burger in town”. However, it seems to be the case that international openings are very rarely based on demand and clamour from the local market and they can end up as an expensive, embarrassing excursion, leading to site closures and withdrawal of the brand after just a few short years, or in some cases even less. Still room to grow? So, on the following pages, we have highlighted a number of the key examples of Share of the foodservice market held by the largest 10 F&B brands moving to new markets over the past year that we will be watching with companies, across the globe. interest to see if they succeed. Source: Aron Aleen & Associates, industry sources *Notes: 2017
a am 36 Global Movements 37 am ag Chotto M Dog atte Brew W Examples of current brand expansion Germany Canada Hans throughout the globe. UK Im G Chick-fil-a Austria luck USA Leon - Blockse Wingstop Tim Hou Bu Ho rg Pieology rto er Shanghai & Du ns Lo We bs ck Mexico te Dubai nd & Fiv r y Wa Singapore s eG ff Company Moving From Moving to uy le Chick-fil-a USA Canada Arabica s Wingstop USA Mexico Pieology USA Mexico Hong Kong Chotto Matte UK Canada Leon UK USA Mad Mex Australia Singapore Arabica Dubai Singapore Mad Hans Im Gluck Germany Singapore Mex Five Guys USA Australia Tim Hortons Canada Hong Kong Australia Wendys USA Australia Duck & Waffle UK Hong Kong BrewDog UK Shanghai Burger & Lobster UK Singapore Block-House Germany Austria Wagamama UK Austria
38 Global Movements 38 39 b u rger Exki Examples of current brand expansion Fat throughout the globe. UK Germany Belgium Nusr-Et a lut Switzerland Eggs Samb USA Turkey Sushi Tac g Saudi o Bl Kin ees Be Arabia Pakistan a ll ck lib r IHOP rge Ta UAE Jol p Company Moving From Moving to Bu Exki Belgium Germany Kenya Philippines mas Black Tap UAE Switzerland Eggslut USA UK Ma Jollibees Philippines UK Roco Taco Bell USA India RocoMamas South Africa Saudi Arabia Spur South Africa Mauritius Mauritius Burger King USA Kenya South Africa Spur Nusr-Et Turkey UK IHOP USA Pakistan Fatburger USA Pakistan SushiSamba UK UAE
40 A.I. in Foodservice 41 It's midway through a busy dinner service in the JLL Much earlier that day, our AI Lou is preparing the Barbara doesn’t mind Alexis experimenting every Foodservice Consulting AI driven restaurant. The POS roster for next week. You see, our restaurant is now and then, as Lou has shown that our kitchen system at the bar prints an order of 2 beers for table located on the 50th floor of a skyscraper, overlooking team is adhering to recipes and portion size well. 14. Bartender Richard pulls them to perfection and the City – a great view! This means that weather and Lou knows this because we integrated inventory and waives over Ken to bring them to an empty table. 1 viewing conditions have a big effect on occupancy purchasing functions into the POS and every time an minute later, Adam and Ziyad enter the restaurant and guests’ dwell time. Lou is taking this into order is placed via the POS, Lou can compare actual and announce to Host Steven that they have a account and checks various weather forecasts, stock levels and do the rest. booking. A quick check on the tablet and they are historic trading data and various other data points The next morning, Investor & Shareholder JB is off to table 14 where the beer is already waiting for before estimating a business volume and staffing checking his emails and happy to see that profits are them, freshly poured just now. Everyone is delighted! the restaurant. up at our restaurant. JB then googles our restaurant Ziyad had booked their table online where the The AI can see that it is going to be busy and (just because) and sees Adam’s review on Trip AI based system (let’s call it Lou) asked if they schedules Ken in again because through the cloud- Advisor talking about the beer. “Lou is really working wanted a drink on arrival and by which means of based POS system, Lou can see that Ken tends to do out”, JB thinks. “Money well spent!”. transportation they were arriving. Typical Millennial - the most up-selling. Planning him in for busy times Whilst all of this may sound quite futuristic, it actually not afraid of Big Brother - Ziyad consented to sharing will help the bottom line. isn’t. Many of the systems described above are his geolocation, which enabled Lou (the AI) to be Just then, a message comes in from Margaret who is already in use across pioneering restaurants, some notified when the guest was nearby so that it could calling in sick for the dinner shift via the new system; more established than others and some still being send away the order for the beer. her cough is back. Our trusted AI immediately trialled. One of the most influential developments Back in the restaurant, Steven goes on to explain jumped into gear and sent out a WhatsApp message of our time must surely be Artificial Intelligence and that all dishes are written on the feature wall, just to the wider team, asking who could fill in. Luckily the implications for hospitality seem endless. Whilst to their left and hands them a tablet which contains Ian had time – what a team player! Barbara, the traditional business owners often see new tech as a information about all dishes, including allergens, restaurant Manager, was aware of course, but didn’t disruption or an unwanted expense, customers have calorie counts and the provenance of the ingredients. need to waste her valuable time making calls and come to expect it. He also confirms that the tablet can be used to monitoring WhatsApp trying to find a replacement The point of new Tech and specifically AI is not to order, pay and to call for assistance if needed. Adam, staff member. innovate for the sake of it, but in order to create fully immediately starts checking if the dish he likes Instead, she, together with Chef Alexis and new Sous integrated systems which can optimise operations contains beetroot. “Hate beetroot, do not Chef Kostas was reviewing the stock order which Lou for the business and remove ‘unpleasant’ elements want beetroot!” (the AI) had prepared for them. Perfect as always, (such as waiting for the bill) for guests. although Alexis had just read a great recipe using scallops and so he added them to the list.
A.I. in 42 1 Quite frankly, considering the rate of speed at which tech is developing these days, frequent change has become 4 6 43 Foodservice Concern over having to invest a lot of money into developing an inevitable. The good news (again) is that new team members who are joining the Positive side effects on our sustainability In summary… AI system for the business. workforce now (and will keep on joining) initiatives through AI are not scared of new tech, but able to All of this and we have still not mentioned cope with it intuitively. the benefits that AI can have for foodservice The good news is: you don’t have to. The operations through enhanced customer business areas for which AI systems are For now, introducing new tech systems of In general, as we dive deeper into the satisfaction. However, for all these great In the context of AI we already available on the market are staffing, course will have its challenges, especially possibilities that integrated AI systems benefits, we also have to point out the keep hearing a number of recruitment, inventory management, waste when we ask the our team to use it (as in offer, more ‘connections’ appear. limitations. What AI is to a big part? It is the questions and concerns from management, revenue managing, voice our story). This goes especially for less next step of big data. As such, it can only be as ordering and customer service (pre, during tech savy team members who are not Let’s think sustainability, Legislations and an operator perspective, good (or as expansive) as the data we feed it. and post visit). Brands don’t have to employ used to it. However… restrictions about waste and other factors mostly related to concerns This is another reason why jumping onto the scientists to develop their own, but instead are only going to get more challenging around investment, AI bandwagon now is important as it will help pay to use those that are already out there, and more complex. AI can help monitor 2 implementation and businesses consolidate and improve their data much like with Point of Sales systems, for our waste, improve our yields, find and start looking at how else we can get it. To application. We briefly example. And, the system comes with a alternative products and even notify maximise the opportunity, we need to be as respond to these and other support team who will train you and guide the team about new legislations being ‘connected’ as possible. considered, so that we don’t waste time key considerations below: you to get the best out of it. Given the ability Concern over choosing the that AI has and the opportunity it offers and resources setting up new supply This is not the time to be a wrong system (which might chains or systems, which will have to be for the business, shouldn’t the concern be technophobe and businesses that whether we can afford NOT to invest in AI? be obsolete in a few years) adjusted in a year. refuse or wait too long to innovate will and having to change again. be left behind. Having to train non tech savy staff to deal Benefits can extend to all stakeholders in hospitality businesses, as AI helps to improve with tech at work is always a concern, but margin, increase profit and even discover new revenue streams. In a time when labour 3 there is an argument that being taught these new skills will have great benefits for them outside of work as well. Further, 5 and produce are becoming more expensive every year, having the power of big data and connectivity help optimise margins cannot be just an option, but must surely be a business imperative. Positive side effects from AI Voice ordering systems are known Positive side effects of AI Looking to the contract catering world for example, we know that for a long time now implementing an AI system to be more accessible, for example for on operational margins and Clients want to pay less (subsidies) whilst cost of goods is getting higher. Margins are blind or deaf guests as well as for foreign which requires our teams to revenue streams being squeezed at every end. In situations like these, how can operators expect to win a language speakers, as the AI can adjust tender when asking for subsidies and not utilising every (reasonable) avenue to optimise skill up and take the time as needed to guide profits? On the high street and in shopping centres we might see a shift towards lower them through our offer. base rents but higher turnover rents, as AI helps to identify new revenue streams and upsell opportunities, loyalty schemes and push targeted promotions.
44 45 BurgerFi – AI Kiosks TellSpec – AI Allergen Check Self-ordering kiosks at TellSpec scanner beams a light directly onto the food item. BurgerFi or WowBao use a Light photons read chemical compounds which are then camera to recognise regular uploaded and processed through TellSpec’s analytics system. customers and make order As a final result, data concerning the food’s composition will suggestions based on be processed through via Bluetooth and subsequently down- previous order history. loaded to the user’s smartphone. In practice Image source: Star Telegram Image source: Chatbots Magazine Image source: Encounter AI Image source: CNET Mai – Voice Ordering Pepper – Humanoid Robot Say2eat - Chatbot An AI solution that provides Nestle and Pizza Hut are using Pepper robots Say2eat from New York enabled customers accessibility for the blind, across stores in Asian countries. Pepper is a to order food through a branded and transforming retail and hospitality humanoid robot waiter taking orders, making customised chatbot via texting. as we know them. recommendations and taking payment. Image source: Star Telegram
46 47 About JLL Foodservice Consulting JLL Foodservice Consulting is a world leading consultancy practice in commercial, leisure and retail foodservice. We create asset value through enhanced tenant performance, creating foodservice ‘places for people’ and building experience into the foodservice provision. In Shopping environments, visitor attractions, retail stores, arts venues, and office parks Visitor Attractions we have the depth of knowledge, experience and creativity to deliver fresh and exciting formats with profitable and enduring operations. Workplace Food (B&I) As a group, we offer an end-to-end service in delivering top-class dining destinations, working in collaboration with our international leasing Retailers colleagues. We provide specialist research and asset strategy whereas JLL international leasing teams are experts in implementing these strategies Foodservice Operators and securing the best tenants. Shopping Centres Transportation Research Strategy Implementation Stadia Hotels Food Halls Foodservice Consulting Leasing Teams
48 JLL Foodservices Consulting Team 49 Adam Griffin Steven Okonkwo Richard Moulds Alexis Marcoux-Varvatsoulis Margaret Smith Director Research Support Director Foodservice Consulting Lead - MENA Business Support Co-Ordinator Adam.Griffin@eu.jll.com Steven.Okonkwo@eu.jll.com Richard.Moulds@eu.jll.com Alexis.MV@eu.jll.com Margaret.Smith@eu.jll.com Known for creating AutoCAD trained and supports Our lead designer, as well as Our lead for the MENA region, Provides the backbone to the global class-leading the wider team on a wide the UK, Scandinavia based in our Dubai office team's corporate travel and workplace solutions range of projects and Hotels project administration Louis Esner Konstantinos Papadakis Paulina Herrmann Ian Hanlon Ziyad Sayeed Ken Higman Consultant Senior Analyst Associate Director Support Consultant Director Louis.Esner@eu.jll.com kostas.papadakis@eu.jll.com Paulina.Herrmann@eu.jll.com Ian.Hanlon@eu.jll.com Ziyad.Sayeed@eu.jll.com Ken.Higman@eu.jll.com Delivering Business Devel- Providing project support for Leads a range of commercial and Leads the commercial sector, Works within our B&I sector, as well Drives the team's sales in opment solutions, as well as the MENA region, based in our business park projects specifically within Spain, Germany, CEE, Americas and as a range of commercial projects leading commercial projects Dubai office. Portugal and Poland Tenant Representation
50 JLL Global Contacts 51 James Dolphin Emily Violaris Véronique Nocquet Dirk Wichner Alfred AbiAntoun John Fekete Alexis Marcoux Varvatsoulis EMEA / Retail Leasing Board UK - London France Germany Head of Retail Executive Director - Saudi Arabia Foodservice Consulting Lead Head of International Retail Director – Central London Restaurants Retail Agency Director Head of Retail Leasing Germany Retail - KSA & Egypt Head of Consulting Services – MENA Foodservice Consulting – MENA james.dolphin@eu.jll.com emily.violaris@eu.jll.com veronique.nocquet@eu.jll.com dirk.wichner@eu.jll.com Alfred.AbiAntoun@eu.jll.com john.fekete@eu.jll.com alexis.mv@eu.jll.com Elsa Merhawi Anna Wysocka Monica Cannalire Miguel Figueiredo Abdulrahman Elbalaa Dana Williamson Xander Nijnens Mark Dunford Sweden Poland Italy Spain Director Head of Offices Executive Vice President Director, Capital Markets Head of Retail Dev. & Leasing Head of Retail Poland Head of Retail Agency Italy Head of Retail Spain Leasing KSA Business Space & Retail Head of Hotels - Sub Saharan Africa MENA/Head - East Africa elsa.merhawi@eu.jll.com anna.wysocka@eu.jll.com monica.cannalire@eu.jll.com miguel.figueiredo@eu.jll.com Abdulrahman.Elbalaa@eu.jll.com Dana.Williamson@eu.jll.com Xander.Nijnens@eu.jll.com Mark.Dunford@eu.jll.com
52 JLL Global Contacts 53 Naveen Jaggi Greg Maloney Lee Jackson Holly Rome Ellen Wei Jemmy Fei Paige Chuang Michelle Chiu President - Retail President and CEO Vice President Executive Vice President Senior Director Senior Director Director Director Retail Advisory Services, (US) Retail (US) Retail Business Development National Retail Leasing (US) Head of Retail China Tenant Representation China Retail China Head of F&B and Lifestyle Naveen.Jaggi@am.jll.com Greg.Maloney@am.jll.com (Canada) Holly.Rome@am.jll.com Ellen.Wei@ap.jll.com Jemmy.Fei@ap.jll.com Paige.Chuang@ap.jll.com Hong Kong Lee.Jackson@am.jll.com michelle.chiu@ap.jll.com James D. Cook Anthony Morro Nathan Phillips Andy Carlson Alison Chan Gary Nonis Cameron Taudevin Shubhranshu Pani Director, Americas Director - Strategic Sourcing Sr. Manager Retail Market Lead Manager Senior Director Director Managing Director Retail Research (US) Category Management – Human Category Management – Food and Latin America (Puerto F&B and Lifestyle Hong Kong Retail Singapore Retail Australia Retail Services India JamesD.Cook@am.jll.com Experience (US) Hospitality (US) Rico/LatAm) alisonj.chan@ap.jll.com Gary.Nonis@ap.jll.com cameron.taudevin@ap.jll.com Shubhranshu.Pani@ap.jll.com Tony.Morro@am.jll.com Nathan.Phillips@am.jll.com Andy.Carlson@am.jll.com
54 @JLLFood JLLFood Trends Book 2018 Trends Book 2019 jll.co.uk © 2020 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to JLL and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of JLL and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of JLL. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.
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