Among the “hot trends” identified in the report include barbecue, with groups such as Pitt Cue Co, new fast food (Chilango), single or specialised concepts (Flat Iron), ‘smoking’ concepts such as Yauatcha, and street food.
“We think that street food is becoming an integral part of the restaurant market,” said Allegra research analyst Peter Linden at a strategy forum for the new report.
Allegra identified three types of influence that street food has on the eating-out market. Firstly, influencing individual items on menus, such as Pulled Pork Gyoza at Wagamama; influencing whole concepts, such as Wahaca, Pho and the burrito chains; and street food operators taking ‘bricks and mortar’ sites, such as MeatLiquor and Flat Iron.
The report says: “Growth in street food has also led to new product development ideas for menus. Restaurant operators have also seen growth in items that are popular at street food markets such as burgers, ribs and pulled pork products.”
Gourmet hotdog
Far less successful have been gourmet hotdogs, Allegra believes. “A lot of brands are putting them on their menus but we don’t think that a lot of people are eating them,” said Linden. “We think it’s a bit of a fad.”
Simon Stenning, Allegra strategy director, told the strategy forum: “I think it’s a case of them appearing on menus because it’s a great and simple fad that could people go with - it gave them a degree of trend on their menus. But from a consumer perspective it’s not a great thing to eat really in a restaurant environment.”
Stenning said the juice bar business model is “hard to stack up” because of the number of transactions required, although he said it has worked in shopping centres “where you’ve got a more youthful market that’s looking for refreshment”.
He pointed out that juice bar operator Crussh has branched out into other lines such as salads and stews because they “can’t sustain” the basic juice bar model.
These concepts, along with bubble tea, will survive but probably in a “niche” way, Linden said.
Street food was identified as one of the main areas of menu development over the last 12 months. The list was headed by breakfasts, then light snacks, fresh produce and cheaper ingredients.
According to the report, emerging trends that are likely to be become established ones include all-you-can-eat formats such as Red Hot World Buffet; all-day dining (Bill’s); artisan coffee (Workshop Coffee); craft beer with food (Byron); frozen yoghurt (Snog); having more ingredient information (Browns); more of a sauce focus (Wahaca); and a seafood/fish focus (Burger & Lobster).
Flexitarianism
Also on the list is so-called “flexitarianism”, the trend of consumers switching between an omnivorous diet and one focused on meat-free meals. Allegra points to the rise of the Grain Store, which serves meat but focuses on vegetarian items, as an example.
Allegra lists the “mega trends” that are shaping casual dining as: healthy eating, indulgence, informality, premiumisation, provenance and value.