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Technomic’s Latest TIndex Release Reveals Reasons for Softening of Foodservice Industry Growth
Technomic’s August TIndex, Technomic’s index on the total foodservice industry, showed decelerated growth. The number dropped to 98.1 in August from 101.1 in July, meaning the industry declined 1.9% over a two-year basis but has grown by 28% compared to the same month in 2020.
“There are a few clear reasons for this softening,” explains Joe Pawlak, managing principal at Technomic. “First, of course, is due to increased fears of the delta variant. This deceleration is also seen mostly within the travel and leisure segments..."
Foodservice Industry 1.1% Larger in July 2021 than July 2019
Technomic’s TIndex, the index on total foodservice industry reported monthly, was down slightly in July from June. However, this number still represents strong industry results versus 2019. The foodservice industry was 1.1% larger in July 2021 compared to 2019 and 31% larger compared to 2020.
“Softening in some noncommercial segments is the reason for the drop in the TIndex, but restaurant sales remain strong,” explains Joe Pawlak, managing principal at Technomic. “As of the end of July, there has been...
Technomic Study Uncovers Labor Crisis for Foodservice Industry May Not be Temporary
Technomic recently released the Crisis on the Front Lines Multi Client Study uncovering drivers and deterrents to unit-level employment in the commercial restaurant industry among job seekers and current employees. The strategic study also uncovers strategies and tactics for operators as they navigate staffing locations and positioning their brand as employers of choice.
“Foodservice operators are facing new challenges in connecting with job-seekers while also keeping up with...
Technomic Reveals How the Global Chicken Menu Category is Poised for Growth
Technomic released a deep dive into the chicken menu category uncovering global foodservice sales, COVID-19’s impact on the category, consumer consumption insights and preferences, menu trends, and the top global and leading local chains, with the 2021 Chicken Global Menu Category Report. This report is a deliverable of the Global Foodservice Navigator program, which offers the tools and guidance to remain ahead of consumer, menu and operator trends across 25 countries.
“Chicken chains have been resilient amid the pandemic and the menu category remains primed for future growth,” explains Aaron Jourden, senior research manager of global at Technomic. “With accelerating competition among...
Restaurant Sales Grew in June as Industry Recovery Continues
Restaurant sales continued to grow in June as consumers looked for a much-needed night out, according to the National Restaurant Association.
For the month, eating and drinking places netted $70.6 billion in total sales on a seasonally adjusted basis, per preliminary data from the U.S. Census Bureau. That total was a 2.3% rise from May’s volume and is the fifth increase in the first half of the year.
The Association said that sales in June were $4.4 billion (6.6%) above pre-pandemic levels in 2020...
Technomic's Take: Roadblock to Recovery for Restaurants
By all accounts, the restaurant industry is roaring back to life as vaccination distribution spreads, dine-in restrictions are lifted and improved weather throughout most of the country sends consumers flocking to restaurants to dine with friends and family. Operators are reporting same-store sales approaching, and in some cases exceeding, pre-pandemic levels as pent-up demand drives the dine-in surge and off-premise orders remain strong.
For restaurant operators eager to return to full capacity, however, significant headwinds remain as the restaurant industry struggles to fill jobs to meet this booming demand. The biggest challenge facing operators in this current recovery period is finding staff willing to work. There are numerous other factors that are impacting...
Technomic Reveals Steady Performance Improvement for U.S. Foodservice
Technomic released the April TIndex (Technomic Index), an index that provides a benchmark to help analysts and industry leaders track the health of the foodservice industry in the United States.
“For the month of April, the TIndex increased to 94.6 from 94.1 in March, showing strengthening results especially within the restaurant segments,” explains Joe Pawlak, managing principal at Technomic. “This represents the continued performance improvement and recovery of the industry as...
Technomic Reports Top 500 Chain Restaurant Sales Fell by More than 8% in 2020Technomic just released one of the most highly anticipated reports, the 2021 Top 500 Chain Restaurant Report, which includes expert findings and insights into the sales performance of U.S. chain restaurants from 2020. The report is built using decades of historical data with detailed analysis into the foodservice industry and overarching trends, including the impact of COVID-19 and performance rankings, as well as annual sales and unit counts by chain and segment.
“Disrupted by the COVID-19 pandemic, the Top 500 chain restaurants saw sales fall by $27 billion in 2020, decreasing by more than 8% compared to 2019,” explains Kevin Schimpf, senior research manager at Technomic. “As many small chains and independent restaurants struggled to...
Technomic Releases 2021 Foodservice Industry Predictions for the U.S., Canada and Global Markets
Technomic has released three different whitepapers for the U.S., Canada and global markets, sharing foodservice industry predictions for the new year. The good news is that there is one thing the predictions have in common: a clearer road to recovery. With the approval and distribution of vaccines, we're able to see a light at the end of the tunnel for the following predictions to thrive.
Overall, Technomic foresees strong to moderate growth—specifically in the U.S. and Canada—over the next 12 months, being led by aggressive strategies...
Technomic Reports on the Current State of the Evolving Foodservice Technology Channel
Technomic recently released The State of Foodservice Technology 2020 covering operator survey results that explore the current landscape of technology use, identify priorities for future investment and provide insights into emerging trends.
“The report uncovers the current landscape of technology use in restaurants, identifies operator plans and priorities for future investment, and provides more clarity on the factors that are accelerating or, in some cases, hindering deeper integration of technology into restaurant operations,” explains Melissa Wilson, principal at Technomic...
Technomic's Take: 2021 Global Trends Outlook
We can only guess what’s in store for 2021 in the global restaurant space. 2020 showed us—among so many things—that what’s expected and what happens don’t always align, to say the least. That said, we think our 2020 restaurant trend forecast holds up fairly well given the reality of the marketplace affected so drastically by the pandemic. Ghost kitchens certainly moved mainstream. Vegan fare got more space to stretch and grow. Plant-based meats continued to inform product development, especially across Asia. Beverage chains certainly broke out from the crowd—again, especially in Asia. And halloumi, pinsa pizzas and sliders had strong showings on chain menus across the world. So, what’s in store for the coming year...
Technomic's Take: What to Expect in Canada in 2021
As we head into 2021, the world of foodservice remains in unprecedented territory as we collectively deal with the immediate and long-lasting impacts of the COVID-19 pandemic. While many unknowns linger as the world anxiously awaits an end to the virus, we do know that those who demonstrate the most versatility in response to industry, consumer and cultural shifts are best set to succeed in the coming year. Read ahead for Technomic’s expert predictions to better equip yourself for what’s to come and how to prepare for a post-pandemic world.
1. The Road to Recovery Steadies
Foodservice will experience the start of a financial recovery in 2021, but sales results across segments will be a mixed bag. Limited-service restaurants will turn...
Consumers Likely to Continue Increased Usage of Takeout and Delivery
With indoor dining restaurant traffic significantly curtailed due to COVID-19 restrictions and concerns, the availability of takeout and delivery options became more important for consumers and restaurants. Many foodservice operators began offering these options recently, and consumers have increased their usage of takeout and delivery.
According to the National Restaurant Association, the uptick in takeout and delivery frequency was visible across each of the three major dayparts in recent months. The Association reported that 66% of consumers said they ordered takeout or delivery for dinner last week. That is up from 58% during the last week of February.
The trend was similar for lunch. About 47% of consumers ordered takeout or delivery for lunch last week, a level that has...
Technomic's Take: What’s to Come in 2021
It’s not easy to forecast the future when the ground keeps shifting underneath. The foodservice industry has had to be more nimble than ever this past year, and everyone is eager to bounce back and embrace a clear sense of normalcy. Yet several big questions loom large: Is a COVID-19 vaccine on the horizon soon? Which areas of the country will recover quickest? And when will consumers feel comfortable about dining indoors again?
Despite the many ambiguities that exist, Technomic's outlook for the industry remains optimistic. Up-to-the-minute strategies are positioning foodservice segments to kick off a wider resurgence through 2021. Optimizing the menu, directly...
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