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In a rapidly evolving restaurant industry, restaurant franchises are continually finding new ways to connect with their patrons and optimize their operations. Here are 10 emerging trends to keep an eye on in the near future.&nbsp;<h3>Fully Leveraging Facilities</h3>Restaurants are beginning to maximize the use of their facilities, especially in the face of rising labor costs. In a scenario where a restaurant is only open for part of the day, incurring expenses like rent and loan payments can be challenging. So, innovative restaurateurs are finding ways to make the most of their spaces.&nbsp;In one example, hot dog franchise&nbsp;<a href="https://doghaus.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">Dog Haus</a>&nbsp;<a href="https://www.nrn.com/fast-casual/why-dog-haus-bullish-its-bad-ass-breakfast-burritos-virtual-brand?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">introduced a virtual brand called “Badass Burritos"</a> solely for late-night diners within the same kitchen. This allows the company to tap into a new market without incurring additional rent or major overhead expenses.“You're basically layering in a brand new business over your existing cost structure,” said&nbsp;<a href="https://www.linkedin.com/in/danrowe3/?utm_source=1851franchise.com&amp%3B%3Butm_medium=article&amp%3B%3Butm_campaign=3-challenges-to-owning-a-service-franchise-and-how-to-overcome-them-2719527&amp%3Butm_medium=article&amp%3Butm_campaign=challenges-to-owning-a-service-franchise-and-how-to-overcome-them-2723472&utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">Dan Rowe</a>, CEO of Fransmart.&nbsp;<h3>Marketing Higher-Profit Items</h3>With increasing competition and the need to manage costs effectively, restaurants are strategically promoting menu items that yield higher profit margins. Rowe pointed to&nbsp;<a href="https://fransmart.com/brand/the-halal-guys/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">Halal Guys,</a> where they promote dishes like french fries topped with meat sauce and other accompaniments to create a satisfying yet cost-effective meal.&nbsp;By showcasing such items, they ensure that they are driving revenue while managing their expenses. The key is to find items that are not only appealing to customers but also deliver a healthier profit margin.<h3>Automation and Technology</h3>Automation and technology are becoming the driving force behind restaurant operations. From automated food preparation to efficient customer service through chatbots and kiosks, the industry is striving to maintain or even improve service quality while reducing labor costs.For example,&nbsp;<a href="https://www.axios.com/2023/10/18/restaurants-ai-robots-staff-fast-food?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">Wendy's and CKE Restaurants</a> (parent to Carl's Jr. and Hardee's) recently began replacing humans with chatbots in drive-thrus, joining restaurants like White Castle, Del Taco, Panera and McDonalds who have implemented similar measures.&nbsp;<h3>The Use of Co-Packers</h3>In the food industry, a co-packer, also known as a contract packager, is a third-party company that packages and labels products for their clients. And these companies are “busier than ever,” said Rowe.&nbsp;This outsourcing approach allows restaurants to eliminate the need for in-house production of items like sauces and condiments. Instead of having employees make pizza sauce or mix their own signature sauces, restaurants can partner with co-packers to streamline these processes. This not only saves on labor but also simplifies the often tedious and messy work that comes with food preparation.<h3>Using Analytics to Prioritize the Guest</h3>Understanding the customer is a top priority for restaurant industry leaders. Leveraging technology, such as advanced point-of-sale systems, reservation platforms and data analytics, allows restaurants to anticipate their guests' needs and customize their dining experiences.&nbsp;“It's really about understanding the guest,” said&nbsp;<a href="https://www.linkedin.com/in/collin-benyo-1bb36a248/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">Colin Benyo</a>, franchise growth specialist at&nbsp;<a href="https://1851franchise.com/meltingpot">Melting Pot</a>. “It's about understanding what's happening in the business, where people are coming from, what their values are and how they're utilizing your brand.&nbsp;<h3>“Eatertainment” Reigns Supreme</h3>Consumers are now more discerning about their spending on dining out and entertainment. Restaurants that go beyond merely serving food and offer an engaging and immersive experience are poised to be the winners.&nbsp;“Consumers are being more careful with their spending of their discretionary and on dining out and entertainment,” said Bob Johnston, CEO of&nbsp;<a href="https://meltingpotfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">Melting Pot</a>. “I believe what we're going to see is that concepts that do more than just feed an appetite, satisfying physical appetite are going to be the big winners.”&nbsp;<h3>More Sustainable Practices</h3>Over the past several years, more restaurants have been embracing sustainability in their operations.&nbsp; This trend includes reducing food waste, sourcing local and seasonal ingredients, and offering plant-based or eco-friendly menu options.&nbsp;<a href="https://www.nrn.com/quick-service/yum-brands-adopts-new-packaging-policy-streamline-sustainability-efforts?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">Yum Brands</a>, for example, introduced a new packaging policy this year that prioritizes more sustainable options. The parent franchisor is transitioning away from plastics within its brands and is developing new packaging solutions as part of that policy.&nbsp;<h3>A Consumer Occasion Shift</h3>In a report from Technomic called “What’s in Store for 2024,” the firm predicts that consumers are going to begin cutting back on delivery in favor of takeout to stretch their dining dollars as far as possible,&nbsp;<a href="https://www.restaurantbusinessonline.com/food/weather-wallets-will-impact-restaurant-menu-planning-next-year?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">Restaurant Business</a> reported. The report also notes that consumers will begin opting for breakfast over lunch and dinner, with away-from-home breakfast already booming during the week.&nbsp;<h3>Enhancing Loyalty Programs and Personalization&nbsp;</h3>Fast-casual restaurants are set to establish enduring customer relationships by harnessing loyalty programs that transcend conventional punch cards. By utilizing sophisticated data analytics, businesses will glean valuable insights into individual customer behaviors, allowing them to craft rewards and incentives tailored to specific preferences.&nbsp;The integration of personalized offers, exclusive promotions and gamification elements will serve as enticing incentives to encourage customer return visits, further solidifying brand loyalty. Additionally, these loyalty programs may seamlessly integrate with online ordering systems, enhancing convenience in earning and redeeming rewards for customers.<h3>New Revenue Streams</h3>In 2023, restaurants have been expanding their horizons beyond their core offerings and venturing into new industries, such as retail. In 2022, around half of restaurant owners added new products or services to their businesses,&nbsp;<a href="https://squareup.com/us/en/the-bottom-line/operating-your-business/restaurant-trends?utm_source=1851franchise.com&utm_medium=article&utm_campaign=10-emerging-trends-in-the-restaurant-franchise-industry-2724038" target="_blank" rel="nofollow">according to Square</a>. And by the end of 2023, that number is expected to jump to 88%. Efforts appear to be paying off, with 44% of customers reporting buying something outside of their standard meals at restaurants in 2022.&nbsp;Remember, staying ahead in this ever-evolving industry means keeping a finger on the pulse of these trends. To stay successful, be open to embracing change.

10 Emerging Trends In the Restaurant Franchise Industry

1851 Franchise

From maximizing facilities to personalizing offerings, the industry is undergoing a transformation driven by consumer preferences and cost-efficient solutions.

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