You’re not the only one grappling to get more foodservice consumers in your stores, and growth projections for the greater industry in 2015 reflect that.
After an estimated 2.5% nominal sales growth in 2014, c-store foodservice is expected to see 2.0% growth in 2015, according to Chicago-based Technomic. If adjusted for inflation, the segment will be flat. Compare that to limited-service restaurants, with an estimated 2.5% nominal growth in 2014 and 3% growth in 2015—so a little more than flat when adjusted for inflation.
Donna Hood Crecca, senior director of Technomic, says any growth in this economic environment is encouraging. “C-stores are expected to lag quick-service restaurants, but only by half a point, so they’re tracking that segment, which is the primary competitor for the on-the-go dining occasion,” she says.
“It continues to be a take-share environment for c-store foodservice, so it’s crucial operators stay focused.”
But forget restaurants for a moment. The biggest threat is arguably supermarket foodservice. The segment, which already generates double the amount of sales as c-stores in terms of foodservice, is expected to see 6% growth in both 2014 and 2015. That’s 2.4% growth in 2014 and 3.9% in 2015 when adjusted for inflation.
“Our projection for foodservice growth in supermarkets is as robust as it’s ever been,” says Crecca. “Foodservice is a strategic priority for many supermarket and grocery operators—in some cases it’s ‘mission critical.’ ”
The grocery channel already has a leg up on local, organic and sustainable products, and you can expect them to leverage that as the demand for such items grows.
So as you continue to close the gap on restaurants, watch the grocers. See how they innovate, translate their ideas to your brand, and keep chipping away at share of sales.
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