511 - Market Update Q1 2025

Key Takeaways – Q1 2025

• Technological Innovations: Advancements in AI, automation, and voice ordering will enhance the efficiency and personalization of takeout services. Smart kitchens, drones, and robots for delivery could begin to play a role in enhancing convenience and reducing costs. • Economic Factors: While economic pressures may affect consumer spending, the convenience of takeout may still be viewed as an affordable alternative to dining out, especially in urban areas where dining costs can be high. The US and Canadian economies have performed with stability and steadiness through the post-Covid and post-supply chain crisis era of inflation recovery and normalization. This resiliency seems likely to continue, with the ability to adapt to most anything thrown their way. This is not to say that 2025 won’t present obstacles; it certainly will, whether due to trade warfare, real warfare, labor strife, new variants of old diseases, or other challenges that crop up, and it will be up to the innovative, savvy Operators and Distributors that ACR proudly serves, working in collaboration with ACR Representatives to chart courses through the choppiest seas.

While uncertainty about tariffs, strikes, and geopolitical strife are unsettling, it must be noted that the outlook for restaurant takeout meals as the new year dawns is expected to remain strong due to a compelling combination of evolving consumer behaviors and technological advancements; • Continued Demand for Convenience: Busy lifestyles and increasing reliance on digital platforms will continue to fuel the demand for takeout. Consumers are seeking fast, convenient options, and many prefer the ease of ordering online or via apps. • Growth of Delivery Services: Third-party delivery platforms will likely see continued growth, further embedding takeout as a standard dining option; UberEats, DoorDash, and Grubhub each now advertise on every NFL game! This phenomenon is bound to expand, supported by improved logistics and expanded restaurant partnerships. • Health and Sustainability Focus: There will be an increasing demand for healthier, sustainable, and diet-specific options in the takeout sector. Consumers will seek more plant-based, organic, and eco-friendly packaging alternatives.

Q1 2025 Market Update

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