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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Houston energy, innovation leader dies after hard-fought battle with cancer

'onward'

Houston energy and innovation leader Scott Gale died on September 24 after a years-long fight with cancer. He was 40 years old.

Gale was the inaugural executive director for Halliburton Labs, which launched in 2020. Prior to that role, he lead global strategy initiatives for Halliburton. A Brigham Young University graduate, he received his MBA from Rice University in 2019, where he co-founded the Jones Student Association for Executives. After his graduation, he served on the the Rice Business Alumni Association Board and the Energy Advisory Board for the Rice Alliance Clean Energy Accelerator.

"Scott made an impact with his incredible kindness, energy, and talent," Dale Winger, managing director at Halliburton Labs, tells InnovationMap. "Scott was passionate about his family, his friends, his community, and his work. He provided incredible creativity and drive to bring Halliburton Labs to life within Halliburton, and despite a terrible cancer diagnosis, Scott continued to collaborate and build connections that launched the inaugural Houston Energy and Climate Startup Week. Work and play were always fun with Scott. His generosity and dedication to strengthen the Houston innovation ecosystem will be missed, yet his legacy endures.”

Gale was also a voice actor and the co-host of two podcasts: Rice University's Owl Have You Know Podcast, which shares experiences of Rice's business community, and the Curiosity podcast, which explored optimism and curiosity with guests and co-host Brad Rossacci.

"A rebellious optimist at his core, Scott believed we need a biased toward action, a mission focused belief system, and a healthy dose of rebellion for good measure," Rossacci, who serves as creative director at Accenture, says. "Carving his own path in the universe, Scott discovered his life’s work and unceasingly committed himself to helping humanity deepen their curiosity, building connective tissue across society, and advancing the future of energy on the shoulders of the giants who came before him. Ultimately, fulfilling his infinite ambitions and creating an echo that will reverberate in the cosmos for eternity."

One month ago, he stepped away from his role at Halliburton Labs, sharing his cancer journey in a message shared on LinkedIn. In the post, he encouraged his whole community to "go out and live a life that echoes," and ended with "onward," something Gale regularly imparted when he spoke on progress within energy and innovation.

Earlier this month during the Houston Energy and Climate Startup Week, which Gale was instrumental in creating but unable to attend due to the progression of his illness, the Energy Tech Nexus awarded its Nexus Community Award to Gale, and his father, Andrew Gale, accepted the award on his behalf.

"He is very focused on the community in Houston and the tech industry," Andrew Gale said about his son when accepting the award, "he feels so honored to be given the opportunity to be able to have an influence."

In addition to his father and his mother, JoAnna, Scott is survived by his wife of 18 years, Nicole, and their four children, as well as his seven siblings — Siara, Shanna, Spencer, Seth, Shalya, Sam, and Shane. In his obituary, his family shared something Scott regularly said as he battled his cancer with countless hospital visits and experimental treatments: “I’m not a doctor, but I’m pretty sure if you die, the cancer dies at the same time. That’s not a loss. That’s a draw.”

Earlier this year, he joined the Houston Innovators Podcast to discuss Houston Energy and Climate Startup Week and call for collaboration within the ecosystem.


Houston clean energy company secures $53M series C investment

big raise

Houston-based Utility Global, a maker of decarbonization-focused gas production technology, has raised $53 million in an ongoing series C round.

Among the participants in the round are Canada’s Ontario Power Generation Pension Plan, the XCarb Innovation Fund operated by Luxembourg-based steel company ArcelorMittal, Houston-based investment firm Ara Partners, and Saudi Aramco’s investment arm.

Also, Utility Global and ArcelorMittal have agreed to develop at least one decarbonization facility at an ArcelorMittal steel plant.

The latest infusion of cash will support the rollout of Utility Global’s eXERO technology, including establishment of the company’s first commercial facilities in 2026.

“With the successful completion of its demonstration program at a commercial steel facility resulting in the first hydrogen ever produced from blast furnace off-gasses in a single reactor, the company has shifted to commercial deployments,” Utility Global says in a news release.

Utility Global’s technology enables reduction of greenhouse gas emissions along with generation of low-carbon fuels and chemicals.

“Our eXERO solution is the first of its kind to convert process gasses into clean hydrogen in a single reactor, onsite, in a cost-effective manner that extends the life of existing customer assets and processes while providing significant emissions reductions,” says Claus Nussgruber, CEO of Utility Global.

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This article originally ran on EnergyCapital.