Foodservice Industry
Q2 2024 Market Update
SUMMARY: Backlash to meal price inflation, signs of slowing in takeout meal boom
Fast food has been a budget-friendly option for away-from-home dining, but the last decade of steady price increases – being referred to as “fast -flation ” - has eroded that value proposition. Consumers are taking note; negative response to an $18 Big Mac meal combo prompted McDonald’s CEO to promise affordability on a recent earnings call. (foodinstitute.com) Restaurant prices being largely a function of operating costs, an interesting note for industry packaging suppliers comes from Technomic’s Q1 Operator Outlook Study stating that year -over-year paper and packaging costs were up 40% in Q4 of 2023.
Significantly higher rates of decline for
takeout meal demand were reported by Operators
surveyed in Q1. The chart at right indicates declines versus prior month in Q1 ranging above 40% for off- premise meals versus rates of increase half that number. ( Technomic)
AmerCareRoyal© 2024
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