Ahh the holiday shopping season. Nothing compares to the hustle and bustle of shoppers searching for the perfect gifts to place under the tree. It’s apparent that for retailers the holiday season is a busy time, meaning an increase in sales. But how does it affect the food service industry?
Holiday shoppers look for quick and convenient dining options while they are out and about.
The holidays are a unique time for food service—on one hand many people are busy spending time with friends and family at home. On the other hand, many are also out and about more often than usual, shopping and participating in festive activities. While restaurants and food service retailers will be directly affected by these types of consumer behaviors, how the holidays affect food service supply manufacturers and distributors is dependent on the end user too. If consumers eat out more, then restaurants will need to plan and prepare more via their suppliers, and vice versa. There are pros and cons for the food service industry during the holidays. Consumers in general are busy. For sit down restaurants this may lead to a decline in traffic, but for quick serve restaurants it may be an opportunity to provide busy shoppers with the ease and convenience they need while they are already out and about. Without a purpose though, many are inclined to stay home, away from the crowds, and out of winter weather unless it’s necessary.
Holiday marketing promos help drive business.
That is only one side of the spectrum though. As a way to celebrate the season it is also common to see an increase in both casual and lavish gatherings. Think company parties, or people getting together with old friends who are in town for the holidays. And more often than not, these gatherings end up being larger groups than on a day to day basis. “A whopping 94 percent of all holiday diners indicated that their holiday dining parties consist of up to five other guests”, according to FSR Magazine’s survey results on holiday dining habits. It is important for restaurants to stock up on supplies for these types of occasions or even rearrange temporarily to accommodate larger group sizes. During the holidays and special occasions consumers are willing to shell out some extra money for the occasion—people are in a “treat yourself” mood. Restaurants know this, but they still need to give customers a reason to dine at their establishment. Holiday marketing programs can make a difference in driving customers through your door instead of through the neighbor’s. Buy one, get one deals, holiday events, and even allowing reservations can all be deciding factors in choosing which place to dine at. Knowing that consumers are willing to spend more, some establishments also create special holiday menus that include multi course meals or more lavish food items that merits a higher price point. It’s a chance for seasonal items to shine as well. FSR Magazine continues on to say, “Nearly half of the survey’s respondents said they will order a holiday-themed dish from a full-service restaurant one to two times from October to January, while four out of 10 indicated they will order a holiday-themed dish three or more times during the holiday season.” This is a reason for suppliers to promote seasonal items as well, since dining establishments will need them for their specials. It’s a win-win situation since these are the things consumers want during this time of year, and it allows restaurants and suppliers to bring in more revenue.
Let’s not forget the retail end to food service either. Gift cards are extremely popular for gift giving during the holidays and purchasing fresh baked cakes and pies to go is common as well. If you are an establishment that offers to go meals, expect a potential increase in those orders, especially among families with children who want to keep their family well fed, but don’t have the time to cook themselves.
While the holidays can overall be an unpredictable time for food service establishments, if positioned correctly there is plenty of opportunity to relish the inflated spending habits of holiday consumers. Just like in retail, planning ahead and understanding the wants of the average person this time of year can go a long way. How are you anticipating the holidays will affect your business?
