Seafood Restaurants Struggle: Why and Seven Fixes

 

In recent years, seafood restaurants have faced an uphill battle, grappling with a perfect storm of challenges. From declining sales to food safety concerns and the mislabeling of seafood, the industry is in a state of flux.  The Grocerant Guru® Steven Johnson of Tacoma, WA based Foodservice Solutions®, has analyzed the intricacies of these struggles and devised seven actionable fixes to help seafood restaurants regain their footing. Let's dive into the numbers and explore the path forward.

The Struggles 

 

Declining Sales

Seafood restaurant sales have seen a significant decline. According to recent data, the seafood dining segment experienced a 7% drop in sales in 2023, with some individual chains reporting even steeper declines. The National Restaurant Association highlighted that foot traffic in seafood restaurants decreased by 5% year-over-year, indicating a waning consumer interest.

Food Safety Concerns

Food safety remains a paramount concern for seafood restaurants. In 2023 alone, there were over 200 reported cases of foodborne illnesses linked to seafood, leading to several high-profile restaurant closures. The Centers for Disease Control and Prevention (CDC) reported a 15% increase in seafood-related foodborne outbreaks compared to the previous year. This uptick has shaken consumer confidence, making them wary of dining at seafood establishments.

Mislabeled Seafood

Mislabeling seafood is another critical issue plaguing the industry. Studies show that up to 30% of seafood sold in restaurants is mislabeled, misleading consumers about what they are actually eating. The Oceana report highlighted that popular species like red snapper and tuna are frequently substituted with cheaper, lower-quality fish. This practice not only deceives customers but also tarnishes the reputation of seafood restaurants.

Viability of Seafood Chains Moving Forward

Despite these challenges, some seafood chains show promise. Red Lobster, Joe’s Crab Shack, and Bonefish Grill have taken steps to address these issues, focusing on transparency, quality, and customer engagement. However, their viability hinges on how well they can adapt to the evolving landscape.

Seven Fixes for Seafood Restaurants

1.       Enhance Food Safety Protocols

Implementing stringent food safety measures is crucial. This includes regular staff training, rigorous kitchen inspections, and adherence to best practices in seafood handling and storage. Partnering with food safety experts can help ensure compliance and build consumer trust.

2.       Improve Supply Chain Transparency

Transparency in the supply chain is vital. Restaurants should source seafood from reputable suppliers who provide clear documentation about the origin and quality of their products. Utilizing blockchain technology can further enhance traceability, giving consumers confidence in the authenticity of their meals.

3.       Educate Consumers

Educating consumers about seafood sustainability and the challenges of the industry can foster trust and loyalty. Hosting events, sharing stories about sourcing practices, and providing information on menu items can demystify the dining experience and create a stronger connection with patrons.

4.       Innovate the Menu

Diversifying and innovating the menu can attract a broader audience. Incorporating plant-based seafood alternatives, introducing seasonal specials, and offering a variety of cooking styles can keep the menu fresh and exciting, appealing to both traditional seafood lovers and new customers.

5.       Focus on Sustainability

Sustainability should be at the forefront of seafood restaurant operations. Partnering with sustainable fisheries, obtaining certifications from organizations like the Marine Stewardship Council (MSC), and reducing the environmental impact of operations can resonate with eco-conscious consumers.

6.       Enhance Customer Experience

Elevating the overall dining experience can differentiate seafood restaurants from competitors. This includes improving ambiance, providing exceptional service, and leveraging technology for seamless reservations and ordering. Creating memorable experiences will encourage repeat visits and positive word-of-mouth.

7.       Leverage Marketing and Branding

A robust marketing strategy is essential. Utilizing social media, engaging in influencer partnerships, and highlighting unique selling points can attract new customers. Emphasizing stories of sustainability, quality, and safety in marketing campaigns can reshape public perception and drive traffic.

Think About This:

The seafood restaurant industry faces significant challenges, but with strategic adjustments, these establishments can turn the tide. By focusing on food safety, transparency, consumer education, menu innovation, sustainability, customer experience, and effective marketing, seafood restaurants can overcome their struggles and thrive in a competitive market. As the Grocerant Guru®, I believe that with the right approach, the future of seafood dining can be both delicious and promising.

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

In 2021 Fish is In

 

Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions® has written a lot about the ‘halo’ of better for you packaging as regular readers of this blog know 2021 is the year chain restaurants are focusing on the Me too We Movement.

At the intersection of the Me too We Movement and consumers eating patterns Johnson believes 2021 that the ‘halo’ of better for you will extend to both fish, and seafood as consumers look to extend and expand their ‘halo’ of better for you.

Recent reports say that “eating fish can provide powerful advantages for the heart and brain, yet Americans eat less than half of the 26 pounds per year that experts recommend. By contrast, Americans buy seven times more chicken and beef annually than fish.”

So, the question is; why don’t Americans eat more fish?  Is it price? Is it freshness? Is it a lack of cooking skill-set? Is it smell? Is it there is simply not enough seafood?  Well, more seafood could be made available for American consumers from global ocean sources given that at least 60% of seafood in the US is imported.

Research conducted by the National Oceanic and Atmospheric Administration Fisheries also indicates slightly more domestic wild-caught fish can be harvested. The US aquaculture sector, has the capacity to significantly increase.

What is the ‘halo’ Effect

1.       Fish is rich in lean protein and long chain omega-3 fatty acids, fish provides robust nutritional benefits that can help ward off chronic disease, boost immunity and reduce inflammation in the body.

2.       Seafood provides your body with critical omega-3 fats and minerals, like selenium, zinc, iron and iodine. It also provides vitamins B12 and D that fend off heart disease, among other benefits.

3.       Fish provides such positive benefits for the body that recent USDA Dietary Guidelines offer guidance specific to pregnant women and children based on the finding that seafood consumption leads to cognitive improvement in children.

4.       Research shows that integrating seafood into a diet as a way to prevent coronary disease can lead to a potential annual health care savings of US$12.7 billion.

5.       Seafood, as a protein, has a relatively low greenhouse gas production. This benefit is heightened when analyzing the many species that offer both high nutrient density and low greenhouse gas production.

Following a Plan with Facts

1.       The 2015-2020 USDA Dietary Guidelines suggest that Americans eat 26 pounds of seafood each year. The recommended amount would ideally provide 250 mg per day of the important omega-3 fats.

2.       Yet because of how American consumers purchase seafood, this provides them with, on average, only 38% of the recommended daily omega-3's.

3.       Many of the most popular seafoods purchased by consumers are relatively low in omega-3’s, such as shrimp, the most popular seafood in the US, comprising nearly 30% of annual fish sales.

4.       Considering the 10 species that make up 85% of fish available for Americans to buy in restaurants and markets, only salmon, the second most popular seafood item, has relatively high levels of omega-3’s.

5.       There are many species of fish high in omega-3’s that are not regularly purchased or eaten, such as anchovies, herring and sardines.

6.       People can replace eating fish by taking supplements or eating other foods, such as eggs that contain omega-3’s, to help overcome this deficiency.

7.       However, research shows that eating fish itself is better than supplements, given that a fish filet has a full complement of fats, vitamins, minerals and other supporting molecules.

Are you helping consumers who are at the intersection of the Me too We Movement and consumers eating patterns?  

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter