2010 Restaurant Forecast Revised Down
CHICAGO — A leading food research and consulting firm has revised its foodservice sales forecast for 2010 down. Technomic expects the restaurant industry to decline 1.6 percent this year. That is an even lower prediction that the 0.8 percent decline it had estimated in September of last year. While the forecast remains unchanged for most foodservice segments, weaker than anticipated sales in major areas including fast food, business dining, and vending segments prompts the consulting firm to adjust the shrinkage slightly lower for the overall industry.
Restaurants and their vendors will continue to contend with a challenging market throughout 2010. "Given current dynamics among consumers, we don't see the industry returning to the sales levels it previously enjoyed until 2011 or even early 2012," said David Henkes, Technomic vice president. "With demand remaining weak and bundled deals and promotions driving down check averages, topline sales growth among foodservice operators won't bounce back quickly."
- Franchise topic:
- Enter Your Own Tag:
Keep in mind that this Technomic forecast covers the entire foodservice sector--restaurants, contract, off premise, etc, and does incorporate new unit growth. This is not a same store sales number, which is usually a bit worse.
In the very recent January 2010 earnings results, it seems clear that some giant chains that can deliver balanced price/value/premium messages (McDonalds), and those companies in less than national position that still have alot of runway to develop new units and are number one in their subsector (Panera, Cheesecake Factory, Buffalo Wild Wings) can see both absolute and same store sales and profit growth. And the very recent success at Starbucks--positive same store sales, all driven by average check gains (50% was the new VIA single serve product) bears review.
John A. Gordon Chain Restaurant Earnings and Economics Experts www.pacificmanagementconsultinggroup.com
Post new comment