Our 2022 Hospitality Forecast
The start of a new year is always an interesting time to reflect on the social, economic—and even pandemic—factors that have propelled our industry forward over the past 12 months. We’ve read countless editorial articles predicting specific trends (down to the ingredient!), doomsday-worthy rants, and more even-handed estimates of where the industry is headed.
Taking all of these into account, alongside our own observations, these are the key shifts we expect to influence our clients and other independent operators in the coming year:
Tech innovation + labor shortages = Smaller teams with better benefits.
The hospitality industry has traditionally lagged in the technology department, but the pandemic has catalyzed new opportunities for efficiency and automation. At the same time, labor shortages have challenged operators to optimize their workflows while maintaining a high quality product and level of service. Rather than replacing humans, we’ve seen thoughtful operators use technology to build new systems and reduce administrative headaches. In turn, they’re able to successfully run their business with smaller teams, pay a better wage and provide more comprehensive health benefits. As we always say, go back to the financial model. If a leaner team means scaling back on hours, simplifying your menu or streamlining operations, that could be the right choice for your business. Remember—you can always evolve with the market!
Climate change + supply chain failures = A more thoughtful approach to sourcing.
One of the primary lessons we’ve taken from the pandemic is our interdependence as a national and global community. In this light, customers have become even more aware of where their food comes from and its impact on our environment, driving trends in plant-based, sustainable and ethical eating. For operators, this is a call for greater transparency and responsibility—whether refocusing on regional sourcing from small farmers, shifting to compostable to-go packaging or simply asking customers to “opt in'' on elements of service (like disposable utensils) that often end up in the trash. As we transition from putting out the fires of the pandemic to building sustainable business practices—that can weather future storms!—prioritizing intentional sourcing over convenience is likely to be a practice that pays off.
Essential workers + demand for delivery = Service charges included.
The dining public has never been more aware of the risks faced by F&B professionals—or more grateful for their service (we hope!). So when dining rooms closed or reduced capacity for COVID, customers were quick to adapt to the “service included” policies employed by countless restaurants across the country. After years of debate over tipping, the pandemic has thus provided a unique opportunity for operators to shift to a business model focused on pay equity between FOH and BOH—without worrying about the ramifications on diners’ expectations. The biggest challenge? Educating diners to ensure the additional value is understood and conveyed in your model going forward.
Urban migration + shifting personal values = The rise of secondary + tertiary markets.
From New York City, to Chicago, to San Francisco, dense urban centers witnessed a mass relocation of lifelong city dwellers to smaller cities and towns across the country. For talented hospitality professionals, these moves came with the opportunity to reexamine their work/life balance and long-term career goals—even considering the opportunity to open their own concepts in more affordable formats or markets. While a certain portion of hospitality workers have also left the industry for good, many who have simply relocated are building more human-centric and community-focused businesses. We expect this new generation of operators will redefine the industry’s work environment and leadership style—while also reimagining the guest experience for the better.
Let’s keep the conversation going. These are just a few of the macrotrends we seen emerging in the industry, and we’d love to hear how these—and other—shifts are impacting your business. Email hello@oystersunday.com to get in touch.
Disclaimer: The consolidated resources are here for your consideration. The information provided above is not legal advice. We recommend talking to your lawyer to ensure all state + federal compliance is maintained. If you do not have legal representation, we would be happy to connect you with legal counsel. We understand that circumstances are changing quickly and we are updating content as it is available.
