As if operators weren’t already aware of the tight labor pool and its effects on their bottom line, January 1, 2025, has triggered more minimum wage hikes across 21 states. And, in many circles, this reality doesn’t even outrank food costs as operators’ #1 challenge.
At the same time, consumers under their own inflation pressure are demonstrating they’ve reached a threshold concerning menu price increases. Yet, they continue to set quality above price as their top dining-decision factor.
All combined, the profitability imperative for operators heading into 2025 is to reduce the input costs necessary to continue serving a great product.
More than ever, they have to select equipment that will allow them to shave time off the management and preparation of the food in the kitchen—via labor, but also by way of portion control and minimizing food waste—while still maintaining the taste and presentation necessary to justify pricing on the menu.
To that end, especially in the wake of the most recent foodborne-illness scare that shook one of the industry’s dominant chains, operators can gain an advantage by finding equipment solutions that effectively replace precut and other prepackaged supplies with high-speed fresh-food prep in-house.
Convenience will continue to drive almost everything, especially as Millennials settle into busy parenting roles and the Gen Z cohort, born with phones in their hands, continues to slide into adulthood.
Along with inflation, convenience is a big reason why QSR spend is more than double the next segment and c-stores are continually among the leading growth segments. And, it’s also why operators are finding drive-thru, takeout and delivery services are more than just a little “revenue add-on.” They’re becoming a significant piece of the business.
In all these cases, kitchens need to specify equipment for workflow speed, most often in tight spaces. They may also find they often need to easily adapt their kitchens to serve a given daypart, menu change or mobile application.
For these reasons, as well as to get more ROI mileage out of their purchases, operators will need to make equipment versatility a priority.
Limited space, hand-in-hand with fewer staff, means automation has to come on faster than ever. And, while it’s hard to see exactly how the migration will unfold, some aspects are already evident right now.
There are all kinds of platforms for automating server and administrative operations. But, on the equipment front, where robots aren’t taking over just yet, it’s about user-friendly manual operation and programmability to mitigate costs in labor—particularly money spent on training new recruits—and inconsistent food quality that might turn customers off.