Foodservice Industry Perspective
Q4 2023 Market Update
SUMMARY: North American restaurants have regained pre-pandemic operational levels and viability
September marked the 33rd consecutive month of employment growth in the restaurant industry, according to the National Restaurant Association. The category now has 12.37 million jobs, versus 12.34 million in February 2020, before the domestic onset of Covid. Overall, the leisure and hospitality segment added about 96,000 jobs in September, above the average monthly gain of 61,000 throughout the previous 12 months. (Nations Restaurant News)
Restaurant growth is forecasted to be 1.4% in 2024, an increase from the -1.1% downturn in total industry performance seen so far in 2023 Segment-specific growth rates break down as follows: .
➢ Limited- Service Restaurants ….. 1.9%, increasing from -.3% in 2023 ➢ Full- Service Restaurants …. .5%, increasing from -2.4% ➢ Supermarket Foodservice …. 3% increasing from 2%
Travel and Leisure leads all foodservice sector-level growth projections for 2024 at 6.1%, driven by continued strength in Transportation foodservice (airports) up 3.5% after growing 12% this year and 60% in 2022.
Top restaurant chain growth is expected to be 2.7% in the Limited-Service class, 101 to 500 locations size. (Technomic)
Twenty percent more Canadians order takeout restaurant meals than order meals to be delivered. Reasons most given are to get their food faster (42%) and to avoid delivery fees (40%) (DoorDash)
Consumer Price Index estimates for Food Away from Home is forecast to decline by nearly half in what it has been in 2023, from a rate of 6.5% to 3.5% in 2024. (Technomic, US Census Bureau)
590 foodservice operators Technomic 2023 Corporate Social Responsibility & Sustainability Multi Client Study
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