The metaverse is a virtual world where users share experiences and interact in real-time within simulated scenarios. According to a report by data analytics and consulting company Global Data in August 2023, the metaverse market is projected to grow at a compound annual growth rate (CAGR) of over 33% between now and 2030. By 2030, the metaverse market is expected to reach a value of $627 billion.
Bringing together a range of next-generation technologies, including cloud computing, artificial intelligence (AI), blockchain, cryptocurrencies, augmented reality (AR), and virtual reality (VR), prominent foodservice operators are embracing the metaverse to cater to consumers.
Rupantar Guha, the Project Manager of Global Data, stated, “The metaverse is an emerging mega-theme involving companies from various industries, including food service. It is still largely conceptual but could transform how people work, shop, communicate, and consume content.” However, Global Data’s data reveals that metaverse hype is decreasing among food brands. In 2022, metaverse-related social media posts in the food service sector dropped by 21% compared to 2021. Martina Raveni, an Associate Analyst at Global Data, commented, “We are currently in a metaverse winter, and its adoption in the food service sector will be delayed.”
Despite this, the food industry recognizes the potential applications of the metaverse, particularly in customer engagement and retention, digital marketing and advertising strategies, supply chain management, and transparency. Consumers have already participated in various metaverse experiences offered by food service brands, such as Wendy’s Wendyverse, Starbucks Odyssey, and Taco Bell’s Decentraland-hosted wedding ceremony. However, these initiatives are experimental and do not yet provide tangible evidence of consumer adoption or engagement.
In the coming months and years, food brands need to find ways to straddle their presence in both the physical and digital landscapes to appeal to consumers. This hybrid approach, combining offline and online experiences, is seen as a natural fit for food service brands and provides an opportunity for other food brands to explore the metaverse. Online presence has become essential for businesses to attract and maintain customers, advertise, and reach new audiences, but food companies cannot solely exist in the virtual world.
While the current macroeconomic circumstances and the immaturity of enabling technologies pose hurdles to the metaverse’s success, food industry players have the opportunity to use this technology to excel. Fast-food chains like McDonald’s, Pizza Hut, and Papa John’s have already entered the metaverse market with skillful advertising and customer engagement strategies. For instance, Chipotle and Wendy’s have implemented gamification in the metaverse, where players can earn rewards that can be redeemed for real restaurant food.
These examples demonstrate how food brands utilize the metaverse to foster relationships with users in virtual environments, advertise, and capitalize on it when consumers spend their earned promotions at physical outlets. As Rupantar Guha affirms, “The metaverse is a new digital battleground in the making.”
