The foodservice industry tends to be a leading indicator of how well the economy is going to perform, says Joe Pawlak, vice president of Chicago-based Technomic Inc. “When a recession is coming, typically foodservice sales will start dropping about six months before that, because it’s a discretionary purchase and one of the few things consumers will cut back on,” he explains. “Conversely, once we come out of a recession, foodservice is one of the few areas that comes back, where consumers are going to spend more because they have more discretionary dollars in their pockets. They may not be going back to buying houses or cars, but they’re spending whatever extra money they’re starting to get back in foodservice.”
Technomic reports that overall food and non-alcohol beverage sales in the foodservice industry reached more than $625 billion in 2013, achieving 3.8 percent nominal growth and 0.9 percent actual growth, according to its May 2013 data. This includes venues in schools; medical facilities; lodging, transportation and recreation areas; and military bases, as well as caterers; restaurants; and foodservice in supermarkets, convenience stores and other retailers. Technomic also predicts that this growth will continue into 2014 with 4.1 percent nominal growth and 1.1 percent actual growth.