If you’ve flown in the past few years, you’ve likely run into a poor customer experience on an airline: albeit from overworked staff trying their best, delayed and canceled flights, more turbulence, and smaller seats.
The path ahead? Luxurious libations and decadent eats.
In-flight dining recently got a bit more indulgent through a partnership between Shake Shack and Delta Air Lines. Following a successful test late last year on first-class domestic flights in Boston, the duo is rolling out an extended program that includes several top hubs.
The 100% Angus beef cheeseburger is served on a toasted potato bun with traditional toppings such as tomato, lettuce, and ShackSauce. Additionally, the meal comes with Chips, a Caesar salad, and a dark chocolate brownie.
The airline offering is so popular that Shake Shack burgers now account for nearly 15% of the 4,500 hot meals prepped daily in Atlanta’s flight kitchen, reports Bloomberg. This has led the company to order a third bun toasting and buttering machine akin to the ones used at Shake Shack restaurants.
This successful pilot (pun intended) is a proof of concept for a better in-flight meal experience, and food and beverage partnerships may be the key to unlocking this next growth area.
“No one is going to fly an airline because of the food they serve, but serving a good meal to a customer, especially in a premium cabin and especially with more people paying for it, can be a positive,” Henry Harteveldt, founder of Atmosphere Research Group, told Bloomberg.
Yes, Flights Are Getting Worse
A report from late last year found that passengers are increasingly fed up with the flight experience, partially due to a focus on higher-margin first-class flyers that leaves back-of-the-plane flyers with a lackluster experience.
“Flying in coach now means being antagonized at every turn – by extra fees for all kinds of things that used to be included, by the shrinking seat real estate, by overstuffed overhead bins, by the dwindling odds of ever getting to sit next to a blessedly empty seat,” Bloomberg wrote.
As a result, the Transportation Department said last July that it received 97,000 complaints from passengers in 2023, up from 86,000 the year before, an amount hitherto unseen since the peak of the pandemic.
Moreover, airlines are accelerating their cancellations: in 2024, 1.4% of flights were canceled, compared to the 1.3% cancellation rate in 2023, according to the U.S. Department of Transportation. The number of tarmac delays and mishandled baggage also increased.
It’s no surprise consumers are fed up. Flying coach, however, offers little reprieve, as the latest Bloomberg report notes that, as airlines see a pullback in consumer spending for lower-income consumers, they’re doubling down on offerings for those willing to pay a premium.
Food and Beverage, The Secret Weapon?
The success of the Shake Shack pilot and ensuing rollout is a testament to meeting consumer need states. Hurdles in technology, regulation, and space devoted to a meal program have left in-flight dining underappreciated; however, there are many benefits to executing a comprehensive strategy.
Airline companies benefit from an improved flight experience, while CPGs and foodservice sector partners can enjoy an alternative revenue stream that inspires trial, potentially converting into consumers.
FI spoke with winemaker Demeine Estates on a recent partnership with United Airlines to add high-quality wines for United Polaris customers.
“The partnership adds value for United Airlines’ key customer base and will make for a memorable flying experience,” said SVP of marketing and global brand strategy Scott Diaz.
“This will drive brand awareness and traffic to the Heitz Cellar brand in restaurants, retailers, and our website when they return home.”
He added that the airline partnership includes a cross-platform promotion that will reach consumers outside of those specifically participating in the in-flight Polaris experience, suggesting additional collaboration opportunities for food and beverage makers while 35,000 feet in the sky.
Other successful partnerships in the sector include fruit bar maker That’s It’s collaboration with United Airlines and fast-casual chain Dig and Jet Blue’s partnership on in-flight meals.
A recent report from Technavio found that the global in-flight catering market is slated to grow by $7.65 billion between 2025 and 2029, supported by air passenger traffic growth, and accelerated interest in providing high-quality meals and beverages. Additionally, airlines are testing technologies to improve operations, such as meal delivery systems, contactless ordering, and customized meals.
The International Flight Services Association recently platformed some of these technologies which include a robot that can make barista-style coffee for coach flyers and plastic-free in-flight catering packaging solutions.
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Tariffs, geopolitical tensions, and inflation are all weighing on the food and beverage industry and consumers alike, but what can industry leaders do to persevere amid uncertainty? Lou Biscotti from CBIZ’s Food and Beverages Services Group shares his insights on The Food Institute Podcast.
