The foodservice sector, which was hit hard by the recession, has shown glimpses of recovery so far this year. Throughout 2009, foodservice operators reported declines in traffic as consumers cut back on restaurant visits. When dining out, consumers also frequently limited their spending, which led to decreases in restaurant revenue. However, this year consumers are beginning to return to restaurants, says Mike Ginley, partner at NextLevel Marketing LLC, Westport, Conn.
“When the economic crisis first hit, initially we saw panic and about 85 percent of consumers cutting back their restaurant spending,” Ginley says. “That has subsided a little bit in the past year. Currently, we see about 70 percent of consumers saying that they’re cutting back their restaurant spending. So the worst seems to be over and things seem to be starting to return to normal.”