The metaverse, a virtual world where users can share experiences and interact in real-time, is projected to see significant growth in the coming years. According to a report by Global Data, the metaverse market is anticipated to grow at a compound annual growth rate (CAGR) of over 33% between now and 2030, reaching a value of $627 billion. This emerging trend has caught the attention of big-name foodservice operators who are leveraging next-generation technologies such as cloud computing, artificial intelligence, blockchain, cryptocurrencies, augmented reality, and virtual reality to engage with consumers.
Rupantar Guha, Project Manager of Global Data, explained that the metaverse has the potential to transform how people work, shop, communicate, and consume content in various industries, including food service. However, the hype around the metaverse among food brands seems to be waning. Data from Global Data shows that metaverse-related social media posts in the food service sector decreased by 21% in 2022 compared to the previous year. Despite this, there is recognition among industry players that the metaverse can have applications in customer engagement and retention, digital marketing and advertising strategies, supply chain management, and transparency, providing opportunities for producers.
Consumer reactions to current metaverse applications have been observed, with examples such as Wendy’s Wendyverse, Starbucks’ non-fungible tokens (NFTs) in Starbucks Odyssey, and the wedding ceremony hosted by Taco Bell in Decentraland. However, these initiatives are experimental and launched to keep up with the trend. It is expected that real-time evidence of consumer adoption and engagement will emerge as metaverse-enabling technologies mature in the next three years.
Food brands now need to find ways to straddle their presence in both the physical and digital landscapes to appeal to consumers. Martina Raveni, Associate Analyst at Global Data, suggests that a hybrid approach, combining online and offline experiences, may be the way forward for food service brands. Having an online presence is crucial for attracting and maintaining customers, advertising, and reaching new audiences. Reward benefits, loyalty schemes, and gamification within the metaverse can enable this. Raveni also highlights the importance of home delivery services and consumer engagement through digital channels in the current business climate.
While there are current hurdles impacting the potential of the metaverse in the food industry, such as adverse macroeconomic circumstances and the immaturity of enabling technologies, there are also opportunities for growth. Some fast-food chains, like McDonald’s, Pizza Hut, and Papa John’s, have already made a move into the metaverse with skilful advertising and customer engagement strategies. Effective strategies include gamification, where players can earn virtual rewards that can be redeemed for real restaurant food. For example, Chipotle’s Burrito Builder allows players to earn “Burrito Bucks” in the metaverse, which can be exchanged for real-world items through the brand’s app or website. Wendy’s has taken a similar approach with the creation of a virtual restaurant in Wendyverse Town Square Central.
The metaverse presents a new digital battleground for the food and beverage industry. As the market continues to grow, food brands have the opportunity to engage with consumers in virtual environments, advertise, and capitalize on the metaverse’s potential for driving real-world actions. By leveraging the exciting possibilities offered by next-generation technologies, foodservice operators can stay ahead of industry trends and meet the evolving needs of their customers.
