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."