Consumers continue to look to the foodservice segment for quick and convenient snacks and meals. From 2015 to 2017, the limited-service restaurant (LSR) segment grew 11.8 percent, according to Chicago-based Mintel.. “LSRs have key opportunities with consumers when it comes to offering convenience and affordable prices, and specific chains have started to find a stride with what works,” the market research firm states in its December 2017 report “Dining Out in 2018.” As evidence of this, Mintel points to the growth of New York-based Shake Shack, Atlanta-based Arby’s and Irvine, Calif.-based Taco Bell, which have announced plans to open more locations in the coming years. Mintel projects that the LSR segment will continue to grow 4 percent a year to $353 billion by 2022.
Beverages are playing a key role in the foodservice segment’s growth. Chicago-based Technomic, a Winsight Co., reports that beverages accounted for more than $181 billion in annual sales and more than 113 billion servings in 2016. Staples, such as carbonated soft drinks (CSDs) and coffee, are driving the overall volume, but specialty coffee, bottled water and energy drinks are growing rapidly and are projected to continue this growth throughout the next three to five years.