Monday, March 8, 2010

Technomic Says Foodservice Sales Expected to Decline

Weaker than anticipated sales in major areas including fast food, business dining, and vending segments prompted market researcher Technomic to revise its 2010 U.S. foodservice industry sales forecast. Technomic predicts the industry to decline 1.6 percent, down from the 0.8 percent decline it previously estimated.

In comments first delivered to clients at its Foodservice Planning Program meeting, Technomic acknowledged that some segments will outperform the industry at large, most notably education, supermarket foodservice and healthcare. All segments will continue to contend with a foodservice environment that will remain challenging throughout 2010.

“Given current dynamics among consumers, we don't see the industry returning to the sales levels it previously enjoyed until 2011 or even early 2012,” said David Henkes, Technomic vice president. "With demand remaining weak and bundled deals and promotions driving down check averages, topline sales growth among foodservice operators won’t bounce back quickly.”

Read more at the Technomic Website

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