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May 18, 2023
Most consumers think of CPGs as a product sitting on a store shelf, but there is another world of opportunity for CPG brands in food service. Partnering with food-service establishments provides CPG brands with increased exposure to new customers. When they see a CPG brand's products at their favorite restaurant or cafe, they may be more likely to look for them at retail.
Aligning with food service establishments can also lend credibility to CPG brands. If a popular chain uses a CPG brand's products, it can indicate to customers that they are high quality and reputable. The same goes for a smaller establishment partnering with a brand: Consumers might be more likely to trust and choose a restaurant or café that uses products from a reputable CPG brand. Collaborations with food-service establishments have provided many CPG brands with opportunities for innovation. By working with chefs and food service professionals, CPG brands can develop new product ideas and flavors that may not have been possible otherwise, giving the establishment opportunities for special promotions.
Food-service providers that partner with CPG brands can offer new product offerings that they may have yet to be able to develop independently, which can help attract new customers and keep existing ones interested in their menu offerings. It also helps reduce costs by outsourcing certain ingredients or products, freeing up resources and allowing providers to focus on their core competencies, such as menu development and customer service.
Working with CPG brands can also ensure consistency in the quality and taste of ingredients and products. This can be especially important for chain restaurants or cafés that want to provide a consistent customer experience across multiple locations.
Overall, partnerships between food service establishments and CPG brands can be a valuable strategy for growing both businesses and reaching new customers. It can provide increased exposure, brand credibility, diversification, consumer insights, consistency and innovation opportunities.
As the food industry evolves, we expect more food-service companies to adapt to these changing consumer preferences. Click through the gallery to discover CPG foods and beverages open to selling products to food service and see examples of successful collaborations.
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