Ketcup gets a gourmet upgrade, improvements to Parmigiano-Reggiano cheese labeling,
and wine in a can.
See more of this month’s trends

The 4-year study by TABS Group, an analytics, software and strategic consulting company, shows that organic food purchases rose between 15 – 20 percent during the survey period. Younger consumers, under 40 years, are leading the pack for this year with 48 percent.
The survey was conducted on 1,000 respondents ranging from 18 – 75 years old

2011: Flexible Operations, E-Commerce & Locavesting

1) Brinner, Linner and Slunch
As an operator, you’ve probably noticed changes happening in your enterprise and others around the expansion of the menu throughout alll dayparts.   Enterprises are seeking to capitalize on all dayparts in order to stay competitive and be multifaceted to their guests.   Now your menu offerings needs to be a bit more flexible than it use to be– let’s have breakfast for dinner (brinner), supper for lunch (slunch) and lunch for dinner (linner). Millennials, ages 16 – 34, are the consumers driving this trend that has started becoming one to look out for since Fall of this year.  In continuance of this trend, expect to see 2012 year as a year of knowing how to construct a menu that can be served all-day with many pairings that can be switched as needed.

2) The Rise of E-Commerce
As most business professionals may know, consumers are spending more online than offline regardless of the economy woes. 2011 sparked a 16 percent jump in retail sales from the previous year. Shopping at home is now a huge comfort and convenience for most. Consumers are able to access product information and pricing before placing the actual purchases, giving them a level of “intimate control.”  As we embark onto a new year, we predict e-commerce with take on a greater role which will tie in m-commerce. (highlighted in 2012 trends)

3) The Mediterranean Way
America has become a nation of explorers in food and welcoming anything that is, well, not-so American.  For this reason, we are seeing new enterprises featuring Mediterranean foods such as hummus, za’atar and falafel.  In New York alone, many Mediterranean focused enterprises have opened in the last quarter of 2011– 1) Cafetiny, a Turkish coffeeshop in the East Village that sells baklava; 2) Za’atar, a Middle Eastern sandwich shop that sells za’atar, which is a regional dried mix with herbs, sumac and sesame seeds; and 3) several Falafels shops: Ba ‘al Café and Falafel (Soho), Darna Falafel (Boerum Hill), and Kulushkat Gourmet Falafel (Fort Greene). Expect to see this trend continue.

4) Urban Farming
What a great way to do good for the world and lessen the carbon emissions traced from hauling produce from Wisconsin.  Urban Farming was a big hit in 2011 and created such trending terms as locavore and locavorism, sparking a “movement” not just for the average person. Enterprises have become in tune to this and quickly catered to please the growing community by implementing more sustainable practices.  We see sourcing ingredients from local/regional farms or enterprises cutting out the middle person and growing their own vegetables and or herbs either in their garden or on their rooftop. Mintel International, a global food and beverage research firm, shows that 57% of consumers would pay more for local and sustainable food.

5) Locavesting
Investing locally is the new smart way for small business owners to obtain capital funds as traditional money raising activities have dried up.  2011 brought us the year that angel investors and VC’s invested in enterprises that they like or are passionate about within their community.  It’s a win-win situation that is expected to increase as traditional funding from banks remain limited. Some examples of this unconventional funding can be seen in Brooklyn with organizations such as Small Company Offering Registration which is a seamless registration process that allows corporations and limited liability companies to raise up to $1 million in securities that can be sold to the metro area. Slow Money NYC, a chapter of Slow Money Alliance, also helps to strengthen local communities by investing in local food businesses.

2012: Technology, Variety, & Localism Reinvented

1) Quick Response and Social Engagement
Now is the time to capture information about your target guests audience in a quick and responsive way. QR (quick-response) codes will begin to see more traction this year.  QR codes are very similar to barcodes used by retailers to track inventory and price products but the main difference is the amount of information that can be stored on a QR code. QR Codes allow enterprises to share information quickly, build guest CRM databases through loyalty programs and send targeted messages by the click of a scan. The data obtained through QR codes will assist businesses in maintaining a close social engagement with their guests and be an efficient management tool.

2) Variety under one Roof
Maybe it all started with Eataly opening on August 31st 2010.  The demand for quality and variety  in one space at a reasonable price started to gain attention in the latter half of 2011.  We saw this with openings of Lost Weekend, a coffee bar with light pastries that also features a men’s clothing line and art gallery, Earl’s Court, which offers various food options to consumers from Billy’s Bakery and Earl of Sandwich to Shake Bar and Lavazza Coffeeshop.  Madison Square Garden and Macy’s are revamping their food offerings with planned projects for more fast casual and fine dining on site. 2012 will peak in enterprises segmenting their space to targeted consumers through defined interests.

3) A “Tech-ier” Side to the Traditional Point of Sale Systems
The traditional POS system has a new friend in town– say hello to ISIS POS, Lavu, Shopkeep and newcomer Breadcrumb. This isn’t your everyday POS system as they all work on a Mac-based platform and have been slowly creeping up on the scene where guests have come to like the signature by hand and email receipt technology.  These systems tend to cost less in startup capital, all you need is an iPad to get your enterprise up and running.  What is different from a traditional hospitality POS is that most of your data is stored in the cloud and for these services a monthly fee may be charged depending on which service you are using.  

4) Operator-Owned Rooftop Farming
In 2011, we saw a rise in urban farming with places like The Battery getting their first farming project in 386 years funded by The Battery Conservancy called Urban Farm at The Battery (located at State Street). The Riverpark Farm Table Restaurant at Alexandria Center which opened September 2011 that operates with “portable” milk crates filled with growing edible greens. Even Whole Foods is expected to start their own urban farm. Now in 2012 with many enterprises, such as Haven’s Kitchen, a recreational culinary school/event space and The City Farm Cafe in Union Square opening this Spring. In 2012, expect to see local products to be sourced directly by enterprises themselves as they maintain their own gardens on site.

5) M-Commerce Is Just Getting Started
According to Barclay’s Capital, U.S. mobile commerce sales, purchases via smartphone or tablet, hit $5.3 billion in 2011– up 83% percent.  The spark to this trend leads back to Square which was started by Twitter co-founder, Jack Dorsey in 2009. Now with Google Wallet jumping in on the “m-game”, this is proving to be a lucrative market for operators this year as mobile sales are expected to increase. For small business enterprises, mobile payment platforms like Square allow businesses the security of traditional merchant processing systems without the monthly fees, application approvals and next day depositing. We expect to see more operations subsidizing expenses and this is definitely one way to bring more bang to your buck.