Square recently implemented a comprehensive research program across North America, UK and Australia. One opportunity identified was that of multi-hyphenating. To stand out in a rapidly changing commerce landscape, multihyphenate tactics, such as diversifying revenue streams or adding non-core offerings, are now a significant element of a business’ strategy.
77% of restaurants plan to expand in the coming year by adding non-core offerings like meal kits, subscriptions, events or merchandise. 99% of retailers plan to invest in additional revenue streams, such as in-store events or advertising offerings, with the primary goal of keeping up with industry trends.
“A multihyphenate business creates new revenue streams by expanding into non-core items and services, like a restaurant that sells meal-kit subscriptions or a retailer hosting after-hours events. These strategies are growing because they often work. They can de-risk the business by growing recurring revenue that’s less susceptible to volatile consumer trends, and they give businesses a way to make inroads with their highest-spending customers. Non-core items and services can often yield higher margins than the main business.
Although an exciting idea there are implications to food safety and risk optimization systems.
The trend of food businesses diversifying their revenue streams and adding non-core offerings will likely have several significant impacts on food safety and risk optimization systems:
- Increased complexity: As businesses expand into new areas like meal kits, subscriptions, and events, they’ll need to manage a wider range of food safety risks. This increased complexity may require more sophisticated risk management systems to track and mitigate potential hazards across diverse product lines and service offerings.
- New safety protocols: Novel offerings like meal kits and subscription services may necessitate the development of new food safety protocols. For example, businesses will need to ensure proper packaging, storage, and handling instructions for meal kits that customers prepare at home.
- Supply chain challenges: Diversifying product lines often means working with new suppliers and ingredients. This expansion of the supply chain could introduce additional food safety risks that need to be carefully monitored and managed.
- Training requirements: Staff will need to be trained on food safety practices for new offerings. This may involve more comprehensive and frequent training programs to ensure all employees are up-to-date on safety protocols across various product lines and services.
- Regulatory compliance: Different types of food products and services may fall under varying regulatory frameworks. Businesses will need to ensure compliance with a broader range of food safety regulations, potentially increasing the complexity of their regulatory management systems.
- Technology integration: To manage the increased complexity, businesses may need to invest in more advanced food safety management systems. This could include implementing IoT devices for real-time monitoring, blockchain for supply chain traceability, or AI-powered analytics for risk prediction and management.
- Cross-contamination risks: With more diverse offerings being prepared in the same facilities, there may be an increased risk of cross-contamination. Risk optimization systems will need to address these concerns, particularly for allergen management.
- Consumer education: For offerings like meal kits or subscription services, businesses will need to educate consumers on proper food handling and preparation. This may require the development of new communication strategies and materials focused on food safety.
- Event management: For businesses expanding into events, risk optimization systems will need to account for the unique challenges of off-site food preparation and service, including transportation and temperature control.
- Scalability of safety systems: As businesses grow and diversify, their food safety and risk optimization systems will need to be scalable to accommodate increased volume and variety of products and services.
These impacts suggest that food businesses will need to invest significantly in upgrading and expanding their food safety and risk optimization systems to keep pace with their diversification strategies. This may involve adopting more flexible, technology-driven approaches to food safety management that can adapt quickly to new offerings and changing market conditions. To read the full study https://squareup.com/ca/en/townsquare/future-of-commerce. If you need help in managing your multi-hyphenating in your food operation reach out to www.cultureadvisorygroup.com, their expertise in food safety, risk optimization and funding opportunities.