Having spent years working in the HoReCa sector, I find myself particularly intrigued by how the shift from a traditional five-day in-office schedule to a more flexible work-from-home and in-office hybrid model is influencing changes in consumer behavior.
The concepts of remote and hybrid work—which were predominantly unthinkable for most of us before the COVID-19 pandemic—are now a common reality for various types of jobs. Many companies and organizations creatively leveraged this ‘new normal’. Take Hawaii as an example. In 2020, Hawaii launched a tourism campaign targeting digital nomads encouraging them to work remotely from their islands.
As work dynamics have undoubtedly shifted, what does this mean for a Food & Beverage business?
Some things have changed
Consumers now have options beyond just brick-and-mortar stores. Online orders, which were already on the rise before the pandemic, now play a major role as purchases are distributed across numerous channels. In fact, according to a QSR report, online ordering has been growing 300% faster than dine-in traffic over the past decade.
As new ways to shop have emerged, consumers now have more convenient, faster and easier options, such as delivery apps and online orders. While it can be frustrating to see a decline in traditional in-store spending, it’s essential to recognize that consumer spending hasn’t necessarily decreased—it’s just spread across more channels.
Specifically, hybrid work has altered consumer lifestyles and daily routines. Changes in work dynamics, such as increased time at home or reduced willingness to drive for an in-store purchase, influence buying behavior. Personal factors, such as work-from-home arrangements, impact food-related spending decisions. For busy professionals working from home, food delivery has become a more convenient choice and online grocery shopping has surged, with services like Instacart gaining popularity.
Some things remain the same
Back in 2012, Jeff Bezos said: “I commonly get asked ‘what’s going to change in the next 10 years?’, but the most important question is actually ‘what’s not going to change in the next 10 years?’ This perspective is useful to build a business strategy around things that are stable in time”. For Amazon, consumers will constantly desire lower prices and faster delivery in the future, so it’s safe to allocate resources targeting their improvement.
In the Food & Beverage sector, one constant remains: people will always be hungry. Despite shifts in lifestyle, the basic human need to eat persists, even as the methods to fulfill this need evolve. In “Same as ever: a guide to what never changes,” New York Times bestselling author Morgan Housel explores the idea that while change often grabs our attention with its excitement and novelty, human behavior tends to be predictable when we look to historical patterns.
What next?
Adapting to the new dynamics requires understanding shifting consumer behaviors and developing strategies that align with these evolving purchasing patterns. To manage these changes effectively, consider the following questions:
- Where are my customers shopping from?
- How can diversified channels help me break-even sooner?
- What factors are driving purchasing decisions?
- How has shopping frequency and behavior changed?
- What new channels or methods are my customers using?
- How can my business adapt to meet these new preferences?
- What investment is required to diversify into more selling channels, and what is my projected ROI?
As the landscape of work continues to change, customer behavior changes with it. Nowadays, food consumption for hybrid workers can be a great opportunity to create new selling points and give attention to innovative solutions. It is a good time to be creative and adapt to new opportunities!
