Resilience
Resilience is a word that perfectly summarises New Zealand foodservice operators at the moment.
All foodservice operators were “….knocked for six” during the pandemic years but are now saying that it is BUSINESS AS USUAL.
Our interviewers report that operators across the Tasman Sea seem in general far more UP-BEAT than their Australian counterparts. A word used repeatedly is that they have a GREAT ATTITUDE in terms of their foodservice business despite the fact that current economic circumstances are “…holding us back.”
Most operators across the Commercial Foodservice Channels say that CUSTOMERS ARE BACK. This was particularly the case in the beginning of the year with winter being a down-period every year.
TOURISTS are also back in significant numbers which results in far more WALK-IN CUSTOMERS.
Both CORPORATE & PRIVATE functions are back in a big way with caterers creating a great variety of menus.
Agility
So how does this mindset assert itself? In the main, operators are INVENTIVE & FLEXIBLE.
- They cook-from-scratch virtually ELIMINATING FOOD WASTE buy using and cooking fresh produce and proteins in many different ways.
- They substitute ingredients as these quotes demonstrate: “…it does not have to be deep-sea cod when we can work with ling instead which is cheaper”. “If things [ingredients] are too expensive, and we cannot make a profit, we substitute!”
- They save on every ingredient component included on their menu in order to be able to maintain current prices charged and margins by buying slightly cheaper buns – using cheaper cuts of meats – using cheaper fish species – making a deal with the local butcher by giving him/her all their meat procurement – making sauces from scratch. This also includes carving meat well which makes it go further as well as weighing each portion.
- They are always willing to adapt and to tweak their menus, if need be. They will try new dishes on their menu as a SPECIAL and if it works – great; if not – kill it off.
- Their philosophy is also that “…the simplest dishes can always be zhuzhed up! Take, for example, toasted sandwiches…we changed to different fillings by listening to and getting feedback from our local customers.”
- They use a lot of cured meats because it adds flavour/taste without adding much in terms of cost.
Feature Dishes
There is a definite trend towards operators creating feature dishes on their menus.
Operators report that they attract new customers by word-of-mouth, and that customers love that the feature dishes are mainly created with local, in-season produce in a home-cooked style.
Feature dishes tend to be kept lower in price to encourage customers to try them.
Meal Deals
In the current economic climate, meal deals have become hugely popular as New Zealanders are still eating out – not as often and not spending as much each time – but they have not stopped eating out which was the case just a decade ago!
With a meal deal, they can feed the family for less than $50, in general.
Competition Conscious
Most foodservice operators are very much aware of the competition from other outlets around them. Hence, they make certain their menu is slightly different including different feature dishes, and they focus on providing a somewhat different eating-out experience in every aspect of the outlet.
This differentiation also includes, for example, adding a menu item unlike the rest on their menu, so a Fish & Chips Shop might offer a hamburger or a mini pizza or a Hamburger Joint might add a pizza or two to their menu.
This is “…an extra string in our bow…and in that way, we cater to more menu preferences with, for example, a person coming in wanting to order a family meal deal.”
Fruit & Vegetables
- New Zealanders tend to prefer rough-cut potato chips when eating out. Many operators, therefore, make them from scratch.
- They also prefer more vegetables with their meal than most Australians do – potentially because of the way they have been brought up with local, seasonal produce.
- New Zealanders are in general not big fruit eaters (except for kiwi fruit!). Mangos and pineapples, for example, are relatively expensive and rare; considered a luxury by many.
- Albeit ‘all you can eat salad bars’ tend to be popular; operators are hugely concerned with the food waste it creates.
Operator Market Outlook
As is evident from the above, Foodservice Operators are positive, optimistic and adaptable in their business approach going forward.
They are pragmatic knowing that things can change in the future, but also knowing that they will prepare for whatever comes.
The majority think that “…my business will survive [whatever happens in the market]”.
