An executive summary from Euromonitor to help you understand your core business as well as adjacent opportunities.
Luxury foodservice in the US recorded growth in 2019 as luxury consumers continue to shift more of their discretionary dollars towards experiences. However, with the plethora of fine dining options available throughout the US, not only in major cities but increasingly in smaller, secondary cities and tourist destinations alike, designer-branded restaurants do not hold the same appeal in the market as they do in others that may not have a strong history of fine dining.
NEW DEPARTMENT STORES OPEN WITH A MULTITUDE OF FOODSERVICE OPTIONS
As store-based retailers continue to face increasing competition from e-commerce, luxury department stores are adding foodservice options to not only attract consumers to stores, but also to keep them inside for longer. In renovating its Fifth Avenue flagship store in New York City, Hudson’s Bay Company-owned Saks Fifth Avenue opened the first US outpost of famed Parisian restaurant L’Avenue in February 2019, just in time for New York Fashion Week.
FOODSERVICE IS A POWERFUL MARKETING TOOL FOR GLOBAL BRANDS IN THE INSTAGRAM AGE
With Instagram and other social media platforms quickly becoming the primary ways consumers discover fashion, brands and retailers alike are increasingly offering Instagram-friendly food items from coffee to popsicles during runway shows, in stores, and through pop-up marketing activations. In early 2019, Celine began to serve classic French butter biscuits in stores, while Saint Laurent opened a coffee-serving café in its Rive Droite store in Paris just before Paris Fashion week.
COMPETITIVE LANDSCAPE
MAJOR PLAYERS CURRENTLY CONCENTRATED IN NEW YORK CITY MARKET
Of the luxury foodservice outlets in the US, all but one are located in New York City, with all of those in New York being concentrated in the Midtown Manhattan neighbourhood. Baccarat’s foodservice outlet is located in the Marriott-owned Baccarat Hotel in Midtown Manhattan, while Tiffany & Co’s outlet is located in the jewellery company’s Fifth Avenue flagship store.
CASUALISATION PRESENTS CHALLENGES AND OPPORTUNITIES
As more relaxed attitudes around behaviours and dress codes continue to drive the casualisation of work and social spaces across the US, foodservice providers are facing increased competition from upscale yet casual and affordable dining options, from food halls in major cities to fast casual restaurants across the country as a whole. As a result of the increase of such options, many local consumers are eating out at high-end, full-service restaurants less often, especially during the week day.
NEW CONSUMER LIFESTYLES DEMAND ENVIRONMENTALLY AND SOCIALLY SUSTAINABLE OPTIONS
As many luxury consumers increasingly demand environmentally and socially sustainable business practices among brands, they are also adopting new lifestyles surrounding consumption in order to improve their overall health and wellness, as well as mitigate their negative social and environmental impact. In the foodservice space, this is taking shape through increasing demand for sustainable food options, including organically-grown and locally-sourced ingredients, as well as vegetarian and vegan options.
Complete report from the Luxury Foodservice market in the USA and other countries can be obtained at Euromonitor International
