TL;DR
Foodservice spending rose 3 percent in 2015, while visits remained flat due to higher prices and a battle for share within the industry. The increase in spending can be attributed to higher prices and a shift in consumer behavior, with in-home meals increasing over the past several years.
Here’s a mystery for you: How can foodservice spending be on the rise if more people aren’t visiting restaurants? Citing data from The NPD Group, CSPnet.com reported foodservice spending rose 3 percent during the year ending April 2015. However, in this same time period, visits were flat.
The answer: Spending increases can be attributed to higher prices, of course.
"It's a battle for share within the foodservice industry and a battle for food dollars between in-home and away-from-home dining," Bonnie Riggs, NPD restaurant industry analyst, said. "In order to grow, foodservice manufacturers and operators need to have a clear understanding of consumer expectations and then they need to meet those expectations. If they don't, someone else will."
It’s now especially important for food purveyors to focus on attracting business, as they’re no longer just competing with other restaurants. Data shows that in-home meals have been increasing for the past several years.
In this story
This story was originally published in 1851 Franchise on June 9, 2015. Burnaze summarizes and links to the original reporting.
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