511 - Market Update Q1 2024

Foodservice Industry Perspective

Q1 2024 Market Update

SUMMARY: North American restaurants strengthened in 2023, finishing with strong holiday performance

MasterCard data showed consumer restaurant spending was up 7.8% November 1 thru Christmas Eve. National Restaurant Association

Restaurants continued to increase their hiring at the end of 2023, up 2.5% in December to sustain the industry’s strong rebound from widespread layoffs due to the pandemic and the post -pandemic staffing crisis. Canadian hiring growth versus prior year was 4.9%, strongest since 2019. Technomic, US Bureau of Labor Statistics Canadian consumer confidence continues to trend negatively dropping to its lowest point since the start of the pandemic. Through October, Canadian foodservice industry trailing 12-month performance declined 7.1%. Technomic, Canadian Conference Board .

Real sales growth in 2023 for restaurants – the rate of growth with the affect of price inflation factored-out – was a robust 5.3%, measured through November. US Bureau of Labor Statistics

Economists predicted majority consumption of food would return to restaurants from the temporary pandemic swing to the grocery sector. This event happened in 2022 and the divergence between grocery and restaurant continues to widen as Technomic’s chart of US Labor Bureau data (right) confirms.

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