Foodservice trends in the US and Canada

Foodservice plays a vital role in the daily lives of consumers, offering convenience, flavor, and opportunities for social connection. In North America, the industry faces dynamic changes driven by economic shifts and evolving technologies. Innova Market Insights’ Innova360 research into foodservice trends explores the consumer preferences and dining habits influencing the industry’s offerings and innovation.

Consumer foodservice preferences 

In North America, consumers prefer dining out over delivery due to rising delivery costs and the enjoyment of the dining experience itself.

Inflation and food quality influence foodservice trends the most. The top reasons for dining out are to enjoy an experience and socialize. Dining habits remained the same as the previous year, with Millennials and Gen Z keeping on-premises afloat. However, Boomers trade down dining out in response to inflation.

Consumers increasingly like to have seasonal dishes, healthy options, and meals made with locally sourced ingredients at restaurants. The preferred top flavors are sweet, fruit/super fruit, sweet and salty/savory, and sweet/sour.

Other roadblocks to food delivery include time constraints, difficulties customizing orders, restaurant experience, and a lack of healthy options and taste preferences.

However, there are occasions when consumers opt for food delivery. For instance, they prefer fast food when eating alone at home and casual dining options when sharing a meal with friends.

Foodservice market factors and influences 

The foodservice market in North America tumbled in 2020 but has shown steady growth since then, reflecting a positive foodservice trend.

Financial constraints and rising prices create barriers to ordering delivery, prompting brands to introduce new value propositions. These propositions include membership subscriptions offering free delivery and lower service fees on eligible orders.Brands can create appeal through fusion menus and adventurous flavor combinations. 

Consumers increasingly demand healthy, filling, and nutritious snack options. These demands provide innovation opportunities for brands to deliver clean or natural ingredients, snackers guides, and meal planners.

Most snacking happens at home, with 30% of consumers eating snacks once or more daily.

Top brands and companies

Companies and brands try to attract consumers through foodservice by collaborating with cult classic cartoons in compiling menus, offering fusion menus combining cuisines, and providing limited-time offerings of unconventional dishes.

Businesses also try to lean deeper into value to gain consumers’ attention. For instance, IHOP, KFC, and McDonald’s offer affordable menu combinations to capture consumer attention.

Consumers increasingly seek products that step out of the typical cuisine zone, enter new spaces, and embrace flavor trends. These expectations align with Innova’s flavor trend, “Imaginative Taste Adventures.” This trend highlights the consumer’s pursuit of experiencing adventurous unique flavor combinations for memorable experiences.

Reflecting this trend, Taco Bell has launched a crunchwrap featuring Indian spices, Thai noodles, and spicy chicken.

Brands are partnering to deliver trendy, authentic, and street food-inspired flavors that meet consumers’ cravings. Such moves reflect another Innova flavor trend, “Authentic and Rooted.” This trend emphasizes consumers’ craving for flavor to reflect authentic connection and comfort through culturally rooted experiences.

Notable examples include Del Taco partnering with Trejo’s Tacos to launch Roasted Pork Al Pastor with authentic flavor, 7-Eleven introducing trendy quesabirria, and Taco Bell launching Cantina Chicken exclusively in Minneapolis, US.Dining out remains popular with Millennials and Gen Z, driven by socializing, seasonal dishes, and local ingredients.

Foodservice product launch trends 

Foodservice firms are expanding their menus with flavor innovation to satisfy evolving consumer appetites.

The fastest-growing flavors in ready meals include Korean bulgogi, carrots, and herbs. In the meat category, honey, Mexican taco, and Bourbon whiskey are the fastest-growing flavors. 

Packed brand is launching DIY kits that allow consumers to enjoy authentic tastes at home, reducing the need for delivery.

What’s next in the foodservice trends? 

The foodservice trend continues to evolve in response to changing consumer preferences and behaviors. While inflation influences some consumers’ dining habits, most remain consistent in their spending patterns.

The shift toward economizing presents an opportunity for retailers and operators to adapt to meet emerging needs. Retailers can explore expanding foodservice-inspired ready-to-eat offerings and enhancing in-store bakeries to attract consumers seeking value and convenience without compromising quality.

Meanwhile, highlighting premium ingredients like fresh vegetables and high-quality proteins can capture middle-aged diners looking for elevated experiences. 

Snacking remains a key area of growth, particularly among younger generations. Operators can tap into this market by offering versatile, family-friendly snack options tailored to evolving household dynamics.

Expanding delivery options while ensuring transparency in data collection can also foster consumer trust.

Furthermore, promoting proprietary apps and loyalty incentives can help solidify brand presence. Technology continues to revolutionize operations, and leveraging efficient systems to streamline service can encourage customer loyalty.

Brands that align innovation with consumer values will likely thrive in these foodservice trends.

This article is based on the Innova Market Insights report, “The State of Foodservice in the US & Canada.”