I’ll have that: Annual Niagara University summit highlights trends flavoring evolving food industry

An incredible amount of change has swept through the food industry in just four years.

From structural upheaval at the hands of a worldwide health emergency to shifting needs of customers across all demographics, the industry has advanced—and its transformation continues to be a work in progress. But what happens next? Where will this essential element of American life take us, and what will it serve us when we get there?

Some of these answers were provided at last week’s 2024 Food Industry Center of Excellence Summit, hosted by Niagara University and held inside Buffalo’s Hyatt Regency Hotel. Over the all-day program, business leaders discussed a rapidly evolving industry driven by technological advancements, changing consumer behaviors, and a growing focus on convenience, community engagement, and eliminating cyber threats.

These insights were valuable for our team at The Martin Group, especially as we work with some of the biggest names in the U.S. food and beverage space. Here are some of our favorite takeaways from the day’s program.  

Seamless integration on the menu

The COVID-19 pandemic did a lot to rattle and remake the food industry, including pushing typically in-person services to a rapidly developing online marketplace. Now almost four years past this radical remake, customers expect a seamless merger of retailers’ online and offline (or in-person) capabilities. This has pushed businesses to adopt an online merged with offline (OMO) model to enhance operations, meet customer expectations, and enhance individual experience through the latest technological capabilities.

An example of this model in action is Seattle’s Metropolitan Market, which adjusted their traditional grocery operation to design dedicated curbside counters for grab-and-go orders placed online.  

AI cooking up convenience, efficiency

Artificial intelligence (AI) seems to be a part of the conversation throughout all industries. The food industry is no different, with businesses of all sizes trying to figure out ways to optimize operations, enhance efficiencies, and cater to ever-changing customer demands. AI programs help with all these things, while also tackling industry challenges concerning food waste and safety—and freeing up their human counterparts to bring their personal touch to a very person-centric business.

While Walmart has executed more than 30,000 drone deliveries, Aldi and Grabango are trying out a checkout-free store in Chicago, and Uniqlo is using RFID-driven checkouts, not all AI innovations have been successful; Amazon recently scrapped the “Just Walk Out” concept from its Amazon Fresh grocery stores.

For those wondering when AI will enable even more advancements in the industry, stay tuned. Humanoid robotics (CaliExpress is a restaurant run entirely by a robot named Flippy) and self-driving car tech (like Waymo) for food delivery is on the way.  

Table for two—at home

It’s hardly revelatory that dining habits have shifted dramatically since 2019.

With a worldwide pandemic upending the hospitality industry and technological conveniences changing consumer behaviors, some 12 billion dining occasions have moved from U.S. restaurants to kitchen tables or living room sofas. This means food industry professionals are meeting customers where they’d like to eat, with enhanced delivery capabilities, updated ordering processes, and attractive loyalty programs to amplify a desirable value proposition.

As more occasions shift away from foodservice (average prices are about 4.3X compared to eating at home), convenience has been in demand, with more convenience stores focusing on their made-to-order food offerings. Whole Foods is trying out its first small-format store in New York City, Gelson’s grocery store is working with Rove on a C-store concept tied to EV charging stations, and Walmart is partnering with Getaway on The General Store, which is aimed at creating a convenient one-stop shop for outdoor adventures.

Endless hunger for experiences

But despite a hunger for ordering all food from one’s phone, the desire to find a restaurant table or grocery aisle has not disappeared. People still want these experiences—but they need to be plans worth pursuing.

This makes creating memorable experiences essential to lure interested customers. Eliciting engagement through innovative concepts has been on the rise in recent years, and this interest is only increasing. According to industry leaders, high-income consumers are driving growth in food services of all types—and these individuals are willing to pay (and show up) for a special experience. These can include such initiatives as pop-up grocery operations, celebrity collaborations like Erewhon’s Signature Smoothie series that includes partners like Hailey Bieber and Katy Perry, community cooking classes using hyperlocal goods, or even one-off, occasion-based menus that create an air of exclusivity.  

Bottom line: Every experience needs to be special.  

Cyber threats spoiling recovery

Unfortunately, every new trend isn’t as tantalizing as enhanced delivery options and enticing restaurant experiences.

Despite positive developments across the food industry, rising cyber threats amid the employment of consumer-friendly tech continues to be a concern. In 2020, cyber attacks on entities across the food and agriculture sector increased by 607%. Recent polling throughout the same sector indicates that as many as 45% feel like they are behind their peers in employing technology that could defend against these threats. This makes implementing technology—and finding personnel to optimize its potential—crucial to both the security and continued growth of the industry.

Want to learn more about The Martin Group’s work in the food and beverage industry? Click here.