Guest column

Houston restaurants need to get innovative when it comes to the growth of take-out customers

Research has found that 86 percent of consumers are now using off premise services at least monthly. Houston restaurants need to factor in that trend and adapt to the shift in the market. Getty Images

The past year revealed a continued increase in the number of people ordering out at home or in the office, rather than dining in a restaurant.

Independent Market Alliance, a network of independent market share leaders in broadline foodservice distribution with 16 brands, found staggering statistics in their research demonstrating that 86 percent of consumers are now using off premise services at least monthly and a third are using it more than they did a year ago. This trend has driven a dramatic increase in third-party delivery service options, further facilitating growth.

Furthermore, consumers now want to better understand the full lifecycle of single-use packaging from how it was made and impact on the environment. With 24 percent of consumers always or usually considering sustainability when purchasing, sustainability has truly become a competitive focus that cannot be ignored, but not willing to compromise on functionality.

Adapting to consumer habits

Restaurants that have traditionally relied on a delivering an exceptional dine-in experience are now being faced with the challenge of creating that same customer experience through their packaging consumed offsite.

Diners expect to receive the same quality of food when they order delivery or take out as they would receive sitting down at a restaurant – from temperature, crispiness to the utensils needed to consume. Quality and the menu item's ability to travel well is important to consumers in the consumers decision-making process as 90 percent at least sometimes think about how well that particular food will travel, according to a recent study by the Cleveland Research Company Foodservice Council.

To combat this, restaurants operators are looking to new delivery solutions such as switching to temperature-control packaging with proper ventilation and carrying packages that separates different foods to prevent sogginess and loss of texture. This is key to succeeding the age of third-party delivery services, as nearly 60 percent of consumers would see the restaurant at least partially at fault if the delivered food is of reduced quality or took too long to arrive, per the study.

There is still a gap, in many instances, between the customer demand and traditional restaurant operators adapting to advanced packaging either due to cost of packaging or lack of product knowledge. National chains have begun to bring in third-party organizations with the core competencies in off-premise product knowledge for guidance and solutions as to what the offsite dining experience could look like. IMA has become a resource to help provide more understanding between cuisine type and the right packaging.

Third-party delivery and packaging innovation

While traditional sit-down restaurants and even their fast-casual counterparts haven't always had the at-home or offsite experience in mind, the rise of third-party delivery systems has led to additional considerations across all operators. In fact, the Cleveland Research Council's Online Food Consumer Survey (Gojak, et al., 2019) shows that 50% of U.S. consumers surveyed have used a restaurant delivery service at least once.

Customers who see that their food provider understands that safety is a priority have increased loyalty to establishment. As a result, the rise of tamper-free packaging has become a staple in food service within the past 18 months albeit providing the security through a label, a stapled bag or even more advanced with plastic seals

Tamper-free food packaging is taking on a higher profile as consumers fret about the possibility of delivery passing through hands of "touchy" third-party workers. Through simple innovations such as seals and button-top lids, tamper-free packaging goes a long way to give consumers peace of mind and demonstrate that operators are concerned about their well-being.

Bottom line, delivery demand is growing given structural tailwinds from shifting consumer demand for convenience and off-site consumption, and operators for both fast casual and traditionally dine-in restaurants must adapt.

Factoring in sustainability 

Sustainability is a frequently used buzzword in the foodservice industry that many do not fully understand. While sustainable and biodegradable are often used interchangeably in the foodservice industry, the word "biodegradable" has been greenwashed and actually means the package will degrade sometime in the next 500 years not what most consumers assume as compostable meaning it will biodegrade between 90 and 120 days

IMA and other industry leaders typically define sustainability of products by items that can be broken down within 90 and 120 days and are made of substrates that can be easily recycled by the average consumer. Many are now looking for ways now to develop these products to be truly sustainable in a way that is cost efficient enough to appeal to operators and help stop this greenwashing

Because operators don't always see the added value of innovative packaging, the additional price tag that comes with also ensuring that packaging is sustainable prevents wider use of sustainable materials in today's take out landscape. For that reason, most operators are just beginning to truly explore the cross over between sustainability and customer experience.

In 2020, operators will still find the greatest success from targeting the customer experience, but as researchers invest in affordable solutions, sustainability in single-use packaging will continue to gain importance.

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Stephanie Nicholson is the senior director of business development and national accounts for Independent Marketing Alliance, a network of independent market share leaders in foodservice distribution with 16 brands.

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Building Houston

 
 

Register for some of these informative online events happening throughout the month of March. Photo via Getty Images

March marks a full year of attending online events — from Zoom panels to virtual conferences. But, the shows must go on with another month full of online innovation and startup events that Houston innovators need to know about.

Here's a roundup of virtual events not to miss this month — from workshops and webinars to summits and pitch parties. Note: This post might be updated to add more events.

March 1-5 — CERAWeek by IHSMarkit

In lieu of the week-long, in-person mega-conference that is the annual CERAWeek by IHSMarkit, the 2021 iteration will be completely virtual. Need some ideas of what panels and talks not to miss? Click here for five recommendations of what to attend.

The conference takes place Monday, March 1, to Friday, March 5. Click here to register.

March 2 — Houston Innovates: Digital transformation and Innovation in Oil & Gas

Digital forces are changing the skills an executive needs to manage organizations. In a world that's become increasingly digital, energy companies can sometimes find it hard to adapt. Join General Assembly Houston for a panel discussion with:

  • Sameer Khan, digital leader (MarTech and Transformation) at ExxonMobil
  • Sarah Vega, vice president of IT & Change at SmartestEnergy
  • Ricky Burns, business transformation team lead at BP
  • Jose Beceiro, senior director of Global Energy 2.0 at the Greater Houston Partnership

The event is on Tuesday, March 2, at 9:30 am. It's free and can be accessed online. Click here to register.

March 2 — Ladies Who LaUNCH #13: The Female Superpower

In 2020, 40 percent of US businesses were owned by women and generated $1.8 trillion. With these numbers in mind, it comes as no surprise that the presence of women in entrepreneurship and investing is growing.

Why do women-led companies financially outperform their male counterparts? And what are the "female superpowers" behind our ability to excel in these fields? Join featured speaker, Megan Bent, as she explores the research, data, and her own experience in the importance of female leadership in entrepreneurship and investing, and how to leverage your differences to your advantage.

The event is on Tuesday, March 2, at noon. It's free and can be accessed online. Click here to register.

March 3 — What's Next in Crypto?

Baker Botts and TeamBlockchain are hosting a webinar discussing trends in cryptocurrency. Key speakers from the sector include:

  • Ali Dhanani, partner at Baker Botts
  • Sarah Beaumont, associate at Baker Botts
  • Jonny Fry, co-founder & CEO at TeamBlockchain Ltd
  • Spencer Randall, principal & co-founder at CryptoEQ
  • Ankush Jain, chief investment officer at Aaro Capital

The event is on Wednesday, March 3, at 11 am. It's free and can be accessed online. Click here to register.

March 9 — Investing in Medical Devices

Join the Texas HALO Fund for a conversation with three of the fund's portfolio companies: Adient Medical, Allotrope Medical, and PathEx.

The event is on Tuesday, March 9, at noon. It's free and can be accessed online. Click here to register.

March 10 — Open Project Night: Achieving Gender Equality in Houston and Beyond

Impact Hub Houston is bringing you a monthly opportunity to come together to work on solutions for some of Houston's most pressing issues. Our city is full of changemakers across all ages, cultures, skillsets, and industries. This is your chance to conned and collaborate for the greater good.

The event is on Wednesday, March 10, at 5 pm. It's free and can be accessed online. Click here to register.

March 10 — Conversations with Latinx Entrepreneurs in Houston

Latinx entrepreneurs are starting small businesses faster than the rest of the startup population and becoming a bigger part of the total U.S. market every day. Join General Assembly for a panel of Houston Latinx leaders as they share stories about their heritage, failures and success.

The event is on Wednesday, March 10, at 6 pm. It's free and can be accessed online. Click here to register.

March 11 — How to Sell Without Being "Salesy"

In celebration of Women's History Month, Catherine Brown and Leela Madan, both serial entrepreneurs and founders of Houston-based Founder's Compass offer their advice on selling your business.

The event is on Thursday, March 11, at 10 am. It's $30 and can be accessed online. Click here to register.

March 11 — Inspire Seminar with Leslie Wise

Join Enventure for a talk and Q&A with the president and principal consultant of Evidence Matters, Leslie Wise. Inspire is one part of Lilie's three-program career exploration series. The goal of Inspire is to share an individual's career journey so that trainees can see one of the many paths that can be taken, learn about the reality of working in these fields, and gain valuable advice from key leaders to better prepare themselves for their own career journey.

The event is on Thursday, March 11, at noon. It's free and can be accessed online. Click here to register.

March 16-20 — SXSW

Another conference is pivoting to virtual attendance this year. SXSW has flipped the switch to being online only for 2021. SXSW's seven conference themes are A New Urgency; Challenging Tech's Path Forward; Cultural Resilience in the Arts; The Rebirth of Business; Transforming the Entertainment Landscape; Connection in Disconnection; and An Uncharted Future. Stay tuned to InnovationMap for a Houston innovator's guide to the conference.

The conference takes place Tuesday, March 16, to Saturday, March 20. Click here to register.

March 17 — Top Legal Considerations for Startups

Join Rice University's Liu Idea Lab for Innovation and Entrepreneurship for a session with corporate and securities lawyer Aaron Barker, who specializes in advising companies from formation to exit, will give you the inside knowledge to help you launch your venture, and possibly save you from making a rookie mistake.

The event is on Wednesday, March 17, at 4 pm. It's free and can be accessed online. Click here to register.

March 24 — Houston Startup Showcase

The Houston Startup Showcase is a flagship event from The Ion, formerly known as Demo Day. This event will allow for developing companies to receive feedback from subject matter experts and showcase their successes thus far. The event is a year-long series of monthly pitch competitions, and results in a final winner to close the series in November. Companies are encouraged to apply online to pitch.

The event is on Wednesday, March 24, at 6 pm. It's free and can be accessed online. Click here to register.

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