The Top Restaurant Industry Trends for 2024 

Several market drivers have created lasting trends in the restaurant industry throughout 2023, and we predict they will continue into 2024. Labor shortages, mindful consumerism, and health and safety concerns have spawned new trends. Overall, 2023 saw the continued post-pandemic recovery of the Canadian restaurant industry. However, Restaurants Canada reports that 50% of restaurants are breaking even or operating at a loss. Only 12% of restaurant operators are seeing double-digit profit margins compared to pre-pandemic levels of 36%.  

This post reviews restaurant trends and how food service professionals can maximize returns on these trends to make the most of a still-recovering market. 

Minimizing food waste 

RestoBiz reports that 61% of retailers have a surplus of edible food that could be donated rather than thrown out, along with 46% of food manufacturers, processors, hotels, and restaurants. Food waste is also a climate concern, as it produces methane gas during decomposition—25% more damaging than carbon dioxide. 

Restaurants are picking up on public outcry against food waste by developing donation programs, creating vegetable, fish, or beef stock from food scraps, and investing in composting programs. Other solutions include portion control and menu planning, upgrading cold storage systems and biodigesters, which break down food scraps into waste that can be safely disposed of in the sewage system rather than landfills. 

Contactless ordering 

A holdover from the pandemic that seems likely to stay in contactless ordering. More and more restaurants are utilizing QR code menus and ordering. One study found that 65% of diners prefer ordering directly from a restaurant via a website or app (rather than a third-party application). The benefits of contactless ordering post-pandemic include:  

• More accurate orders 
• Efficient use of staff in the wake of continued labor shortages 
• Greater sanitation 
• Larger average check size 

Robotics and automation 

The labor shortage also drives the need for robotics and back-of-house automation. Restaurants are experimenting with food delivery robots, food preparation robots, or batch-programmable kitchen equipment like combination ovens. Fast food operators are disposed to this type of innovation–utilizing the same menu and ingredients across many locations. For example, Chipotle invested in Chippy, an automated chip-making machine. 

However, customers may be suspicious of this leap forward. Red Rooster found that nearly a third of consumers did not want a robot preparing their food.  

The plant-based food market is multiplying, with sales expected to increase by 500% by 2030. One reason for this trend is that people are becoming more health-conscious and aware of the benefits of a plant-based diet. Additionally, there is growing concern about the environmental impact of meat production, and many consumers are choosing plant-based options to reduce their carbon footprint. Finally, younger generations increasingly prioritize ethical and sustainable food choices, driving demand for more vegetarian and vegan options on restaurant menus. 

Monumental leaps in plant-based proteins make it easier than ever for restaurants to create tasty alternatives to traditional meat dishes. 

Non-alcoholic drinks 

Canada has witnessed a surge in the popularity of non-alcoholic (NA) drinks in bars, also known as mocktails. Many bars across the provinces now offer NA drink specials and non-alcoholic or low-ABV wine, champagne, and beer. NA sales surged by 20% in the United States last year, and Statista predicts a growth rate of up to 8.4% in Canada next year. This trend is driven by recent updates to health guidelines surrounding alcohol, as well as Gen Z’s preference for moderation and “mindful” drinking. Restaurants and food businesses can capitalize on this trend by offering non-alcoholic drinks on their menus without needing a liquor license. 

Read more: The Rise of the Mocktail Bar and Non-alcoholic Beverages in Canada 

Generating new revenue streams 

With tight margins, restaurants are seeking new ways to generate revenue. According to research by Square, 88% of restaurants plan to add additional income streams over the next year rather than raise prices. New initiatives might mean bottling and selling house-made hot sauce or condiments and selling them online. Or it might mean taking on more special events or catering business to corporate clients. Some restaurants are experimenting with loyalty and rewards programs and subscription models.  

Connecting directly with customers through social 

Social media is like a town square where customers connect with their favorite eateries. Restaurants that excel in social media listen to customer feedback, create content that resonates with their audience, and celebrate milestones with followers to cultivate a loyal community. This loyalty leads to a broader customer base, translating into more frequent visits and organic expansion through word of mouth.  

Restaurants are increasingly connecting with social media influencers to create branded videos. Some chains are testing food orders directly from social media and virtual assistants.  

Navigating future restaurant industry trends with RH 

No matter what the future holds, Russell Hendrix is here to help you navigate the twists and turns of the market. Contact your local RH rep to discuss these trends in detail.