This moment in time for foodservice seems especially pivotal given the unsettled nature of the industry. Momentous changes in technology, sourcing practices, labor and consumer dining behaviors, among others, are forcing operators to rethink their traditional habits and attitudes and evolve to where the industry is heading. Operators have a mix of both concern and optimism for the current state of the industry and the road ahead.
This year looks to be a heightened version of 2016, according to Winsight’s State of Foodservice survey. Many of last year’s challenges linger, while some have intensified.
Operators across all channels say labor is more burdensome this year, while convenience-store operators also strongly express that government regulations are posing a greater threat to their profitability.
Staying on top of consumer interest in off-premise, new technology and clean eating are also taxing for operators. This is especially demanding as consumers start to expect these offerings.
Despite these challenges, operators remain hopeful. More than two-thirds of respondents (68%) have a favorable outlook on sales growth over the next year. That’s down only slightly from the 73% who said the same in 2016.
Why the positivity amid so many headwinds? For one, many of the challenges can lead to operational improvements and growth opportunities. Advancements in automation and process engineering that allow operators to do more with fewer and lower-level workers are helping solve labor issues. And operators across all channels say high-speed, multiuse and automated equipment is a more worthwhile investment today compared to a year ago.
Also, more than half of restaurant operators and a third of noncommercial operators see catering as a growth channel due to consumer demand for off-premise dining. More than four out of 10 restaurant operators, and two-fifths of noncommercial and c-store operators, see the promise of delivery service driving new business.
These are just some of the findings from this year’s survey, developed via a partnership among CSP, Convenience Store Products, FoodService Director and Restaurant Business magazines, and market research firm Technomic. The survey maps shared and distinct opportunities and challenges by gathering the collected viewpoints of nearly 600 restaurant, noncommercial and c-store operators who influence purchasing and menu decisions related to their company’s foodservice operations.
The Foodservice Handbook is a resourceful, one-stop guide for industry insights that serves as a valuable decision-making tool throughout the year.
Table of Contents
Operator Snapshot
Daypart Opportunities
Menu Trends
Operational Needs
Industry Challenges
Operator Outlook
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