Foodservice Industry Outlook Summary: Modest single digit same-store traffic growth is forecast for US and Canadian restaurants in the new year and sales revenue is expected to rise only slightly; Dining Experience, Sustainability and Service Quality are key to remaining competitive
• Health-Conscious and World Flavor Menus - consumers are seeking healthier dining options, leading to an increase in menu items that cater to dietary preferences, including plant-based and low-calorie options, as well as flavors and tastes from different parts of the globe. • Labor Market Management - staffing remains a significant challenge, with many restaurants reducing service hours or closing on days they would normally be open. • Changing Dining Habits and Preferences – patrons increasingly seek personalized and unique dining experiences, from novel and exotic menu choices to full-emersion dining events with elements designed to satisfy all human senses, the newly coined phrase being “ Eater -tainment.” • Adoption of Automation and AI - chatbots handling reservations and robotic chefs preparing meals, technology is enhancing efficiency and reducing labor costs but it’s crucial to balance automation with personalized customer service. • Digital Ordering and Delivery Platforms - online ordering and delivery services continues to reshape the industry. Patrons prefer digital platform convenience, prompting restaurant investment in user-friendly apps and delivery service partnerships; focus on maintaining food quality during delivery and managing the logistics of off-premise dining are key aspects for ACR chain and distribution customers.
Overall, the restaurant supply distribution industry is navigating a complex landscape with both opportunities and challenges. Competition is fiercer than ever for highly-contested patron dollars and restaurant operators are being forced to evaluate complex and expensive investments in technology, menu formats, and labor to gain and maintain traction. Key trends that stand out for organizations focused on staying agile and responsive to consumer demands in 2025 include the following: Black Box Intelligence, KPMG, TRG Restaurant Consulting, CSP Daily News • Inflation and Pricing Strategies - Inflation continues to impact menu pricing and consumer spending and operators are grappling with higher labor and food costs, leading to a 4% increase in menu prices in 2024. “Meal Deals” will continue but chains will likely try to normalize back to standard pricing formats where possible. Notably, the Convenience Store industry joined the meal-deal trend in 2024 in response to competitors in the Quick Serve restaurant segment. • Digital Enablement - restaurants are increasingly investing in digital capabilities, including online ordering systems, delivery services, and digital marketing. • Sustainability - emphasis on eco-friendly practices, such as reducing food waste and using sustainable packaging, continues to grow.
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Q1 2025 Market Update
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