Technomic Lowers Foodservice Forecast - Again
A Chicago foodservice consulting firm yesterday for a second time downgraded its 2008 U.S. foodservice industry nominal growth forecast from 3.6 percent to 2.2 percent, citing worsening economic indicators.
Technomic's original forecast in late 2007 called for 5.1 percent growth this year. Still, some chains are still turning in solid growth, the group says, but on the whole, limited-service restaurant growth has slowed substantially, and full-service restaurants are facing even greater challenges.
"Retail hosts, including supermarket foodservice and c-stores are one bright spot," says Ron Paul, president of Technomic. "We expect this group to enjoy solid 5 percent growth this year - further evidence of our observation that consumers are 'trading down' to more economical foodservice alternatives."
According to the National Restaurant Association's 2008 Restaurant Industry Forecast, released in December, restaurant sales are projected to reach $558 billion in 2008, the 17th consecutive year of real-sales growth and up 4.4 percent from 2007.
The majority of seafood Americans consume occurs away from home.