Foodservice Industry Outlook SUMMARY: Performance lags as remnants of inflation cut restaurant traffic and purchases Due to sluggish performance of many large players to date in 2024, Technomic downgraded full-year chain sales growth forecast from 6% predicted in January to 4.9% now forecast for year-end. High foodservice inflation continues to have a major impact on chain restaurant performance as menu prices have increased by 4.1% over the trailing 12-month period ending in July. Technomic
Q4 2024 Market Update
Low- income households continue to limit their food service spending, and as highlighted in last Quarter’s Market Update, has led many quick-service restaurants to provide value- oriented platforms, like McDonald’s and Burger King’s $5 meal deals. However, early r esults from McDonald’s value platform have yet to show a measurable impact on same -store sales despite the mild boosts in traffic. Last quarter, McDonald’s U.S. business’ same -store sales fell by 0.7% — the first decline it reported in the key metric since 2020. Restaurant Dive The morning daypart is growing significantly for Quick Service Restaurants, now accounting for 8% of that segment’s total sal es. Driving this are upward trends in office-based employment with resumption of morning commutes and coffee stops, as well as restaurant breakfast meetings and office catering demand. Implications for Distributors are product demand shifts toward hot beverage supplies (cups, lids, sleeves, stirrers, etc.). NACS / convenience.org Fredonia Research findings presented at a recent fiber packaging conference that plastic is starting to lose market share in several areas, largely due to shifts in consumer preferences, regulatory changes, corporate sustainability goals and investor pressure, and advancements in the production, performance, and quality of alternative materials like molded fiber. Demand for single-use foodservice products made from molded fiber is forecast increase 10% per year through 2028. Fredonia Research
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