Society for Foodservice Management

December 5, 2011

The weak employment situation contributed to continued low consumer confidence and a sluggish environment in which the foodservice industry operates. In addition, food inflation rose, but more for food at home than for food away from home. In some regards, this was a benefit to foodservice. When prices at the grocery store are rising faster than restaurant prices, supermarkets have less of a pricing advantage. Higher commodity prices, on the other hand, have eaten into foodservice operator and manufacturer margins. Recently, grains and beef have suffered most from rising commodity prices, while chicken prices have been more stable. In foodservice, this disparity accompanied more chicken promotions and stronger trends for chicken products.  Beef appeared to have received less marketing support, and burgers, in particular, were weak.

The NPD Group is the industry’s leading source for foodservice trends and restaurant market research data. NPD’s CREST® service, which continually tracks consumers’ use of commercial and non-commercial foodservice, assists foodservice manufacturers, foodservice operators and other foodservice organizations with strategic planning and positioning, product/menu development and consumer targeting.

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