Survey results positive for U.S. foodservice industry

Food & Drink Weekly, Sept 23, 2002

Foodservice operators and suppliers may continue to harbor general concerns about the state of the U.S. economy, but they are in strong agreement that their industry is poised for growth. In its annual survey for the upcoming International Foodservice Manufacturers Association (IFMA) Forecast and Outlook seminars, foodservice consultancy Technomic, Inc. found substantially higher levels of business confidence than a year ago.

"Not surprisingly, optimism did take a significant dip last October," said Ron Paul, President of Technomic. "Our latest figures, however, show that industry confidence has fully rebounded and now exceeds levels reported just over a year ago, prior to the impact of the terrorist attacks."

Restaurants and other foodservice operators say that the key to future profitability lies in increasing sales through gaining new customers. Additionally, they cite increasing the dining frequency of current customers as a priority, as well as reducing labor and food costs. Casual dining operators demonstrate the strongest performance thus far, with year-to-date revenues up 11.5% compared to 2001.

Foodservice manufacturers are also more upbeat, with 90% expecting sales growth for 2003. Among the most important growth strategies cited by manufacturers were building market share, improving customer service and controlling/reducing costs. They also acknowledge, however, the difficulties of implementing these and other strategies for growth.