10 New Food Trends That Are Quickly Changing The Fast Food Industry

Impact of the Coronavirus Pandemic on the Fast Food Sector

The restaurant industry, particularly the fast food sector, has been heavily affected by the Covid-19 pandemic that has ravaged the global economy over the past couple of years. Repeated lockdowns and reduced sales forced over 110,000 food service establishments in the United States to shut down. While restaurant industry sales were expected to touch $899 billion in 2020, the actual figures stopped at $659 billion by the end of the year, according to data shared by the National Restaurant Association.

As for the fast food business, sales have declined from $29.66 billion in 2019 to $24.16 billion in 2020, shows data released by Statista. However, the situation improved in 2021 with sales tipping over pre-pandemic levels to cross $30 billion.

One of the most significant impacts of the Covid-19 pandemic is the decrease in customer traffic and sales. Customers are either fearful of going out to dine at restaurants or simply do not have the disposable income to spend on non-essential items like eating out. As a result, many fast food chains have been forced to temporarily close down locations, lay off workers, or even file for bankruptcy. The pandemic has also led to supply chain disruptions, as many restaurants are struggling to obtain ingredients and other supplies. These challenges are likely to continue in the coming months as the pandemic continues to affect economies around the world.

Where Does the U.S. Fast Food Industry Stand at the Moment?

According to data shared by the restaurant association, business is picking up again in 2022 with the total projected sales of the industry expected to reach $898 billion, almost the mark it was expected to reach in the pre-pandemic days. This is a rise of over $99 billion as compared to the sales figures for 2021. Moreover, the restaurant industry is also expected to generate 15 million jobs by the end of 2022.

Speaking of the fast food sector, the current market size of these restaurants is $331.4 billion, as of 2022. The fast food market size is further expected to grow at a rate of 2.9% in 2022. According to Zippia, one may expect to see a further compound annual growth rate (CAGR) of 5.1% from 2020 to 2027, with 50 million Americans consuming fast food every day.

In this article, we will discuss the top food industry trends in the fast food industry that are driving this growth trajectory.

Top Fast Food Trends- No. 1Vegan Food

Among the top restaurant trends dominating the industry today is vegan food. Food and beverage sellers are offering more plant based foods to a new generation of customers who are more health- and environment-conscious. From social media to public awareness campaigns, rallies and celebrity endorsements, veganism is everywhere.

From their health benefits to their environmental benefits, vegan food has entered the popular discourse and fast food businesses can ill afford to stay away from this leading food trend. While a number of 100% vegan brands, such as Impossible Foods and Beyond Meat and Plant Power, have cropped up to meet this demand, established brands are also introducing vegan menu items and special menus that offer healthy alternatives to meat and dairy. Even big brands such as Burger King, McDonald's and Carl's Jr are riding this new wave with plant-based food options.

Fast Food Trend No. 2Automation

One of the biggest Restaurant Trends to disrupt the fast food industry is automation. Restaurants are beginning to use machines to do everything, from taking orders to cooking food. This food trend is driven by both, the desire to improve efficiency and to reduce labor costs. One of the biggest advantages of automation is that it can help fast food restaurants improve their accuracy and speed. Ordering through a machine means there is less chance for human error. Automation also has the potential to make fast food cheaper as restaurants are free to reduce their labor costs and instead engage their workforce to perform more skilled tasks.

From point-of-sale systems to supply chain management systems and inventory control solutions, most business processes of a fast food establishment can now be run with automated software solutions that make everything easy and fast. This not only helps businesses speed up their operations and boost revenue, but also reduces the scope for error, wastage, and unnecessary expense.

Fast Food Trend No. 3Healthy Eating

Fast food has always been associated with food that is unhealthy and harmful to the human body. However, with a growing consciousness about Health Wellness, restaurants and particularly fast food businesses, have been forced to introduce healthy and vegetarian options to their menu. More and more Americans are now adopting healthy eating practices, forcing fast food chains to introduce vegan food, healthy alternatives, and low-fat, low-carb dishes. Fast food chains have also started keeping count of the calories in each food item to help customers with their diets.

Another trend gaining steam is organic or locally sourced food. More and more people are beginning to pay attention to where their food comes from. They are even willing to pay a little extra for items that are environmentally friendly. This food trend isn't just limited to fast food, even casual dining restaurants are starting to get in on the action.

Fast Food Trend No. 4Ghost Kitchens

Ghost kitchens are one of the most rapidly growing food trends world over. These are kitchens that are specifically designed to produce food for delivery or take-out, and they typically don't have dine-in options. According to Euromonitor, ghost kitchen businesses are expected to grow to $1 trillion by 2030 across the world. This food trend is on its way to bringing radical changes to the way the fast food sector operates, and it's being driven by the growing popularity of food delivery apps such as Uber Eats and Grubhub, along with the rise of third-party meal kit companies like Blue Apron.

There are a few reasons why ghost kitchens have become so popular. First, they are much cheaper to establish and operate compared to traditional restaurants, since they don't need investment in real estate or infrastructure like seating or tableware. Second, they are able to capitalize on the growing demand for food delivery without having to invest in their own delivery infrastructure. And finally, they provide a way for restaurants to expand their reach without opening new branches.

Fast Food Trend No. 5Food Delivery

The popularity of restaurant food delivery services has exploded in recent years, and it's no wonder why. With the pandemic reshaping how the food industry had functioned for ages, online ordering and food delivery services have now started to dominate the scene, thanks to restrictions on public movement. Add to this the hectic pace of modern life, and the fact that the majority of the population simply does not have time to cook a nutritious meal from scratch every night. But with a food delivery service, one can enjoy a hot, delicious meal without even stepping into the kitchen.

Whether customers are looking for Indian, Chinese, Thai or Italian cuisine, there's sure to be a food delivery service that can bring their favorite dishes right to their doorstep. And with so many different options available, they can easily find a service that fits their budget and dietary needs. This has pushed restaurants to introduce food delivery and online ordering options, in addition to their regular dine-in services.

Fast Food Trend No. 6Artificial Intelligence

The restaurant industry is rapidly evolving, and fast food chains are turning to artificial intelligence (AI) in order to stay ahead of the curve. AI can be used for a variety of purposes, from automating customer service tasks to providing personalized recommendations, using predictive analytics to manage the supply chain and demand planning processes.

Artificial intelligence is also being used to improve customer service with dedicated tools for data mining and analytics. These can study and understand customer behavior and purchase patterns to offer recommendations and suggestions that enhance the customer's buying experience.

Fast Food Trend No. 7Self-service

Of all the fast food trends that have cropped up in recent years, self-ordering might be the most convenient (if not the most personal). With self-ordering kiosks, customers can peruse a menu at their own pace, without feeling pressured to make a decision right away. And when they're ready to order, they can do so quickly and easily, without having to wait in line or flag down a server. Self-ordering is particularly popular with millennials, who value convenience and efficiency. This has made it a growing food trend that's here to stay.

On the other hand, with self-serving kiosks, businesses can now better utilize their workers for more skilled jobs instead of having them spend hours behind a cash drawer. This is likely to reduce labor costs, while improving customer service.

Fast Food Trend No. 8Franchising

Fast food chain flourish with the franchise model of business expansion. Franchising is when a company expands by giving other businesses the right to use its name and sell its products. This is a popular way to expand because it doesn't require as much investment as opening new locations. It's also less risky because franchisees are responsible for their own business.

This food industry trend has always been a popular choice for businesses and it has been growing even more energetically over the past years. In fact, some experts predict that franchising will eventually become the dominant model for fast food expansion. This could have big implications for the industry, especially if small, independent restaurants are unable to compete with large chains.

Fast Food Trend No. 9Focus on Safety and Hygiene

The fast food industry has always been spooked by concerns over food safety and hygiene, thanks to a couple of infamous incidents of food poisoning, and bacteria and viral outbreaks. And in the wake of the Covid-19 pandemic, fast food chains have ramped up their focus on safety and hygiene to an unprecedented degree. In addition to increasing their cleaning efforts, many restaurant chains are now mandating that employees wear masks and gloves while handling food. Some restaurants are also experimenting with contactless ordering and payment options.

While these changes may be temporary, they underscore a new reality for the fast food industrythat safety and hygiene are now paramount concerns for customers. As a result, fast food chains will have to continue to invest in sanitary practices if they want to stay competitive in the coming years.

Fast Food Trend No. 10Personalized Experiences

Gone are the days of the one-size-fits-all fast food experience. Today's customers want personalized service and customized menu options. And they're willing to pay a premium for it. Leading fast food chains are already responding to this food trend. McDonald's for example is testing out a create-your-own burger bar in Australia, while Taco Bell has launched a customizable Tacos Menu in the United States. As personalization becomes more and more important to consumers, expect to see more fast food chains offering customizable menu items and personalized service options.