In 2021, we explored the future of the foodservice industry, grappling with the uncertainties of a world still emerging from the grip of the COVID-19 pandemic. At the time, our insights highlighted trends and changes that we believed would become enduring features of the “neo-foodservice” era. Four years later, in 2025, many of those predictions have been validated, while others have evolved in unexpected ways.

Key Developments in the Neo-Foodservice Era

1. Cloud Kitchens and Centralized Production: The New Standard

Even before COVID-19, cloud kitchens were reshaping the foodservice landscape. By 2021, the pandemic had turbocharged their adoption, and in 2025, they remain a critical solution for both labor and operational efficiency.

Non-commercial segments such as K-12 schools, colleges, and healthcare facilities have increasingly shifted away from traditional onsite kitchens. Centralized production facilities now cater to a broad range of needs, offering scalability and flexibility while mitigating labor challenges. Cloud kitchens have enabled organizations to maintain quality and consistency, even amidst fluctuating demand, and remain a fixture of modern foodservice.

2. Hygiene and Sanitation: Elevated Expectations as Norms

In 2021, we anticipated that heightened hygiene measures—born out of necessity during the pandemic—would persist long after herd immunity was achieved. By 2025, sanitation practices have indeed become embedded within foodservice operations.

While masking has become situational, other practices such as frequent sanitation of tables, touchless payment systems, and advanced air filtration technologies have become industry standards. These measures not only ensure safety but also foster consumer trust, solidifying foodservice’s reputation as one of the most hygienic industries behind healthcare.

Segment-Specific Updates (2025)

Here is how foodservice segments have evolved, building on our 2021 predictions:

Segment 2021 Predictions 2025 Reality
Full-Service Restaurants Cloud kitchen production, smaller footprints Cloud kitchens thrive for delivery operations; smaller dining spaces cater to intimate experiences.
Quick Service Restaurants (QSRs) Delivery-only stores, curbside/pickup lanes Delivery and pickup remain dominant; some QSRs fully eliminate dine-in areas.
K-12 Schools Offsite production, grab-and-go, reduced labor Centralized meal prep dominates; grab-and-go ensures accessibility for hybrid and in-person formats.
Colleges/Universities Reduction in dining plans, reliance on contract firms Expanded delivery options for off-campus students; sustainability-focused dining initiatives.
Business & Industry (B&I) Vending, grab-and-go, remote work impacts Hybrid work models persist, reducing onsite dining; grab-and-go offerings expand.
Healthcare Room service, in-house staff, critical round-the-clock meals Personalized room service becomes the norm; emphasis on quality nutrition in patient care.
Retail Central kitchen production, reduced self-service Retailers focus on prepackaged meals from centralized facilities; crew-served options replace self-serve.

Uncertainty in Retrospect

In 2021, we acknowledged the difficulty in predicting the long-term effects of the pandemic, noting that many pre-COVID trends, such as delivery, mobile ordering, and cloud kitchens, had been accelerated. Looking back from 2025, it’s clear that these trends not only endured but also transformed the industry.

The evolution of foodservice highlights the resilience and adaptability of the sector. Many changes, initially perceived as temporary responses to the pandemic, have become foundational pillars of a more efficient, hygienic, and customer-centric industry. As we move forward, the lessons of this transformation will undoubtedly inform the next era of foodservice innovation.

 

Tim Powell is a Principal with Foodservice IP, a professional services firm aimed at delivering ideas for managers to guide informed business decisions.

To learn more about FSIP’s Management Consulting Practice, click here.

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