Technomic Reveals Initial 2014 Foodservice Industry Forecast

Moderate foodservice growth is anticipated for 2014, with growth at independent restaurants outpacing growth at chains.

May 23, 2013

CHICAGO – Technomic released its expectations for foodservice industry performance through 2014 earlier this week, updating its earlier forecast that it released in January.

Since that earlier report, Technomic has lowered its expectations for the industry, from a nominal 3.9% to 3.8%. However, it raised its 2014 industry forecast to 4.1%.

"In general, foodservice is still facing headwinds that are tempering consumers' willingness to eat out," explained Joe Pawlak, Technomic Vice President. "Slow employment gains and stagnant disposable personal income are a drag on growth. Coupled with the January tax holiday expiration and pending government spending cuts from sequestration, consumers are more cautious about their own discretionary spending."

Pawlak said uncertainty about costs resulting from the Affordable Care Act is tempering results. However, he mentioned several industry bright spots, including the following:

  • Sales growth for independent restaurants is outpacing growth at chains
  • Supermarket foodservice is expected to outperform restaurants and bars this year and in 2014

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