Consultants’ trend outlooks for 2019 reflect the growing importance of meeting consumers’ specific and varied demands and keeping up with evolving technological advancements. In both hospitality and retail, being a one-stop shop is increasingly important, especially among millennials who are accustomed to having all of their needs met at the touch of a button.
Matching this convenience in a brick-and-mortar establishment is a clear challenge for operators and will continue to be one into 2019 for those who can’t add more variety of product and service to their concepts.
“As of 2019, millennials will surpass baby boomers as America’s largest generation and the most connected generation ever,” says Nick Baker, CEO of Smart Design Group. “Millennials are savvy, skeptical and have the power to find information right at their fingertips. Brands must provide immersive experiences that blend technology, personalization and price in order to attract this unique generation.”
Creating enjoyable dining and shopping experiences is especially important in U.S. airports, notes Rebecca Ramsey, executive director of R. R. Ramsey Research. “Adding to traditional dining and shopping activities is paramount to keeping consumers’ attentions. They’re carrying all the diversion they need in their purses, pockets and briefcases, and in the absence of better options, they may be inclined to stick to the gate consuming content until they board.”
Amanda Anthony, founder and CEO of strategic marketing agency 27 Stella, notes that every aspect of the airport experience should be focused on creating positive experiences. “U.S. airports need to come together and work harder at changing consumer perception of the airport experience—it still feels stressful, expensive and chaotic. European and Asian airports have really invested in creating spaces that people don’t mind hanging out in and having extra time to shop in. Seeing things you’ve never seen before in the airport sparks joy, so quality of stores, restaurants, products and food is critical.”
Artisanal Array
As both streetside and airport trends continue to indicate, today’s consumers care more than ever about quality and variety. They want to know where and how products are made, and they seek the ability to personalize or customize what they purchase to best suit their needs. This is especially true of their food and beverage purchasing habits.
“I think it’s not so much food-based as concept-based,” says Kevin Kern, owner of Kern Consulting. “Chef-driven concepts continue to be very popular, as they’re viewed as more upscale or gourmet than traditional global brands. For example, Wolfgang Puck Express and California Pizza Kitchen are preferred over Pizza Hut; Panera Bread over Subway; Shake Shack over McDonalds. I don’t think cost has any bearing, but a focus on fresh, non-GMO ingredients is increasingly important to people.”
It would indeed appear that the farm-to-table—and farm-to-terminal—trend isn’t going anywhere as consumers continue to grow more health- and quality-conscious. “We continue to see an uptick in people wanting healthier options and what used to be exceptions, like gluten intolerance, vegetarianism and veganism, are on the rise,” 27 Stella’s Anthony notes. “People are requesting local food too—they want to know where their food comes from and how it’s prepared, both for health and socio-economic reasons.”
Another growing food trend is plant-based meat alternatives—specifically the Impossible Burger, which has taken off at restaurants and chains across the country and has been making its way into U.S. airports, including Los Angeles International Airport (LAX) and John F. Kennedy International Airport (JFK), this year.
“With the Impossible Burger leading the charge, the faux-meat trend is showing no signs of slowing down,” says Andrew Freeman, founder of restaurant and hospitality consulting firm Andrew Freeman & Co. “According to GlobalMeatNews.com, sales of plant-based meats are up 23 percent in the last year and worth close to $1 billion. We’re expecting to see vegan seafood on menus in the near future. This trend is driven by a desire for both sustainability and creativity.”
Freeman adds that tea is a huge trend for 2019. “We’re anticipating a rise in moringa tea, which is a popular superfood, cheese tea—yes, cheese—and mushroom tea. Guests are expecting more from tea programs, prompting the rise of tea sommeliers and elaborate tea programs.”
Ramsey notes that airport grab-and-go programs will become more robust in 2019 as more healthy food and beverage options are added per consumer and airport demand. “We expect to see expanded varieties of non-alcoholic beverages beyond water and soda to include more specialty juices, sparkling beverages, and varieties of kombucha, matcha and similar tea-based beverages.”
She adds that food halls are going to start replacing, or at least complimenting, traditional food courts. “Smaller individual food concepts in kiosk or pop-up format can feature a variety of mini-restaurants, local brands, seasonal favorites and trending culinary concepts that can evolve to meet consumer demand and changing tastes,” she says, adding that today’s consumers are gravitating to fast-casual concepts and in-home meal kits that offer variety and quality, and food halls provide a similar experience.
Smart Design Group also predicts the rise of the food hall in 2019. “Food halls and branded elevated food courts are the latest hospitality segment that accommodate young food entrepreneurs, authentic and traditional makers and top-tier chefs, allowing them to come together to provide a balanced mix of old, new and noteworthy quality food,” Baker says. “Food halls are a one-stop shop that give the consumer the opportunity to design his or her own experience at varying price points. In airports, food halls increase foot traffic, frequency of visits and generate a higher spend from the passengers that use them.”
Blurred Lines
Although the food hall is emerging in airports as a way to meet varied demands within a single environment, “flex casual” restaurants will be trending streetside in 2019, according to Freeman. “Flex casual concepts include fine-dining restaurants with casual, express spin offs, as well as restaurants that have different formats for different parts of the day,” Freeman says.
Being flexible and accommodating is key to success is any market. Offering a wide variety of venue types and product mix has been a boon to food and beverage concepts in the airport, notes Kern. “National recognizable brands are still important and provide a certain comfort level, but at the same time airports know they need to support local brands, and also provide options for passengers who want to eat healthier or who have certain dietary restrictions. The selection is better than it’s ever been and this has directly correlated to stronger sales across the board.”
Airport retail, on the other hand, is facing an uphill battle, Kern adds. “Street and online prices are really hurting it. People can compare prices on the spot, and they’re used to buying what they want and need on the Internet. It puts pressure on street stores as well.”
Alan Gluck, senior manager at consulting firm ICF, notes that convenience retail has been the only category in the airport that has adapted to changing times by offering the varied products consumers want. “Specialty retail, meanwhile, still has a long way to go to fully serve the modern customer,” he adds.
Baker agrees that specialty retail is falling short because the brands are typically the same regardless of city and don’t offer anything different from what’s available online. “We believe master plans need to evolve to combine concepts into a single space, creating marketplace opportunities much like a food hall. This would allow design creativity, opportunity for personalized experiences, branded and local shops, and pop-up and promotional zones. We believe retailers would be rewarded with greater footfall and increased basket size through cross-merchandising and impulse buying, ultimately producing greater revenue for airports.”
Baker adds that there’s great opportunity in immersing food and beverage with retail. “Food and beverage in North America creates dwell time and holds traffic in a particular zone, which would provide greater opportunity for retailers.”
On the street, Scott Langdoc, senior vice president and practice lead at BRP Consulting, is starting to see more integrated retail shops. “One intriguing trend that will continue to grow in 2019 is a ‘blurring’ of retail categories. Retailers are adding products and categories to their merchandise mix to drive top-line and bottom-line growth, even if those items don’t fit within the traditional product mix for their brand. Examples include DIY stores carrying food products, convenience stores selling motorized scooters and restaurant-quality prepared foods, and grocery stores adding more fresh categories and service businesses to their store locations.”
Ramsey is seeing airport retailers begin to explore a variety of approaches to up their game in the face of the stiff competition of online shopping. “Some are even including online opportunities in their concepts so travelers can make their purchase decisions while on the plane. Many are including ‘experiential’ elements in their retail concepts. For example, adding an element to serve coffee and wine in convenience and specialty retail concepts can certainly contribute to a shopper’s experience.”
