Economic ripple effects from the coronavirus pandemic, supply chain issues and inflation have made their way from restaurants to the businesses that provide eateries with packaging.
In a survey on trends from the Food Packaging Institute, respondents reported increased economic pressure on the supply chain and increased regulations are pushing companies to do more with less. Natha Dempsey, president of the FPI, said many developers also continue to find inflation and labor issues to be persistent.
“It probably comes as no surprise,” Dempsey said. “It’s a symbiotic relationship between foodservice and packaging. If restaurants are struggling, they don’t necessarily need as many boxes to put the food in, so it’s reflected in the packaging.”
Moving forward, though, leadership at packaging companies see restaurants starting to turn a corner in 2023.
“It was a challenging time in 2022 for restaurants,” said Kurt Richars, director of market development at Anchor Packaging. “In 2023, we’ve seen a kind of shift. We know half the restaurants are working at reduced hours of operations and a third are closed on days they used to be open. But with that said, we’re seeing recovery and momentum build.”
The result, he said, has been a growing demand for their packaging, especially with delivery.
“On food, 55 cents of the U.S. consumer’s dollar is spent in restaurants, while 45 cents are spent in a retail setting,” Richars said. “Of that restaurant dollar, more than 50 cents of that is spent on off-premise orders. Those trends toward foodservice away from home, and toward off-premise, aren’t expected to change.”
“What I’m quite pleased about is our customers are really back into growing their business,” said Kathleen Deignan, senior vice president of sales and marketing at the packaging company Sabert. “We have so many new projects and menus by our customers, requiring new packaging and new ways of looking at things, while the last few years it was like things were on hold.”
With the delivery segment continuing to evolve, Dempsey said providing products to help franchisees execute on those off-premises orders remains a major focus.
“There used to be much more of an over-the-counter experience where you got your burger, 30 seconds later you sat down to eat it, and then you were the out the door,” Dempsey said. “Now, it’s either being delivered or someone’s taking it a longer distance. So, we’re seeing some innovations around how we can better keep food hot and crispy.”
“The operators we work with are looking for solutions that help deliver over distance and time more and more,” Richars said. “A lot of our focus goes into enabling an operator to operate over greater distances in better time. Those innovations are about protecting food quality, texture, temperature, taste and presentation.”
Anchor’s answer is its crisp food line, which creates ventilation in the packaging. The packages draw in drier air from the outside through small gaps, which then moves the heat around the food and in the process expels excess moisture.
Sabert has likewise upgraded its containers to help operators deliver a better experience.
“Options for takeout and delivery are high in demand,’ Deignan said. “During COVID, takeout was so strong that our most popular item was a hinged clam shell, but we only offered one version. Now, our customers are looking at more options, but they don’t want to go back with a low-cost foam that their consumers might not want.”
To offer more variety, Sabert introduced three types of packaging offerings, titled, “good,” “better” and “best.”
“The choice depends on their clientele, food type and menu, but they can also mix and match,” Deignan said. “Some high-end dinner items they may want the ‘better’ or ‘best’ option, whereas for lunch items, they may want just the ‘good’ option, which is fine for a sandwich.”
Other innovations from Sabert include making packages tamper secure and having locking lids. Additionally, Deignan said they’re making it easier for multiple boxes to be delivered at once.
“We’re incorporating stacking,” Deignan said. “If you have a family of four, there can be a lot of different menu types and not in the same container. So, we’re making packaging, even at different sizes, be able to snap on to each other which can help make them more secure in transport.”
According to Richars, it’s these types of improvements that can help restaurants prevent order issues—and save them money by way of fewer complimentary meals arising from incorrect or unsatisfactory items
“An operator can have less comp orders, with food arriving the way that the consumer is happy with,” Richars said. “It helps avoid errors and improve operational efficiency. From an order error perspective, a package with a clear lid can see what’s in the container before it goes out the door, so any mistake can be caught. It’s just one example, but they add up.”