Food Service Industry Overview
The global food service industry is currently witnessing a period of low growth due to the rising tariffs on raw materials, evolving consumer buying behavior, and sustainability issues. Besides, the rise of meal kit services, direct-to-door delivery, and retail reinvention, which ranges from menu offerings to in-store experiences have not only opened up new opportunities for companies in the food service industry but have also brought about new challenges. To succeed in the long-term, companies in the food service industry will need to streamline operations, ensure food safety, revamp packaging techniques, and proactively take approaches to tackle challenges coming their way.
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Business Challenge – Food Service Industry
The client is a food service company in Central Europe.
Food safety concerns, cost pressure, diversification of consumer preferences, labelling hurdles, and supply chain issues posed major challenges for the client. In addition, the Food Safety Modernization Act (FSMA) and other regulations in the European food service industry were impacting the client’s business operations. In order to adapt to the changes and gain a leading-edge, they wanted to gather comprehensive insights into the market’s development, industry regulations, customer needs, and competitive landscape. They approached the experts at Infiniti Research to leverage their expertise in offering market intelligence engagement.
By leveraging Infiniti’s market intelligence engagement, the food service industry client also wanted to:
- Enhance customer service and interaction
- Create a unique selling proposition
- Analyze the sales data and identify the most profitable menu items
- Devise sound marketing and promotional strategies
- Efficiently manage cash flows
- Tackle supply chain issues
Customer intelligence engagement to gather insights on primary customer needs and identify reasons behind customer switching to different brands.
Market trend analysis study to identify trends in the food service industry in Europe. This phase of the engagement also involved identifying cost-effective technologies to manage inventory and production processes.
Competitive intelligence engagement to analyze competitors’ strategies and identify growth opportunities. This engagement also involved measuring the client’s market position compared to their competitors. Also, this engagement involved identifying areas where the client lacked in comparison to the top companies in Europe.
Our market intelligence helped the company in the European food service sector to understand customers’ buying behaviors and innovate packaging materials to suit consumers’ needs. In addition, they were able to identify cost-effective technologies and make technology upgrades before their competitors.
By understanding the supply chain challenges in advance, they were able to revamp their traditional supply chain models and adopt innovative techniques. This helped the client to enhance product quality. Also, a thorough analysis of the sales trends helped the client to identify the best-selling products. Besides, the client was able to keep pace with the Food Safety Modernization Act and other evolving food policies in Europe.
They were also able to devise a sound marketing strategy and acquire new customers. Within one year of leveraging our market intelligence engagement, the food service industry client was able to increase CX by 2X and sales by 31%.