Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Channel Strategies

Channel Strategies

Foodservice industry regains footing after multiple years of decline

New, innovative offerings play key role in beverage’s performance within the channel

By Taylor Karg
CocaCola Freestyle

(Image courtesy of The Coca-Cola Co.)

June 21, 2022

In the 1980 American romantic comedy “The Comeback Kid,” Bubba Newman, a minor league baseball player, decides to quit the sport and do something else, as he feels down and out with his life. However, by finding romance and forming life-changing relationships while coaching a group of underprivileged kids, Newman demonstrates perseverance and the ability to overcome downturns and rebounds to victory. Following multiple years of downturn, the foodservice industry, much like Newman, has demonstrated perseverance and is making a comeback. 

Despite a rough few years brought on by the COVID-19 pandemic, the foodservice industry is beginning to regain its footing, experts note. 

“Over the last year, restaurants and other on-premise outlets that were most negatively impacted by the pandemic fared the best,” says Gary Hemphill, managing director of research for New York-based Beverage Marketing Corporation (BMC). “It was a rebound year, in a sense. After [multiple years of] soft performance, on-premise outlets regained their footing as people increasingly went out.”

 

Brisk Dragon Paradise Sparkling Iced Tea
Brisk Dragon Paradise Sparkling Iced Tea is available exclusively at Taco Bell restaurants nationwide. The drink is a blend of tropical dragon fruit, raspberry and blackberry flavors with a hibiscus tea base.
Image courtesy of PepsiCo

 

On-premise visits to outlets such as independent restaurants are contributing to the industry’s recovery. According to a press release from Port Washington, N.Y.-based market research group The NPD Group, visits to independent restaurants increased by 12% in the 12 months ending in March. These locally owned operations still represent 53% of total restaurants in the United States, despite bearing the brunt of the pandemic dining room lockdowns and restrictions, the press release states. 

Although significant, independent restaurants aren’t the only operation contributing to the foodservice industry’s recovery. David Henkes, senior principal and head of strategic partnerships at Chicago-based Technomic, highlights the impact chains have had during the past few years. “Boosted by the reversal of pandemic-related operating restrictions combined with historically high levels of inflation, Top 500 chain sales volume hit a total of $361 billion in 2021, increasing by 18% on an annual basis,” he says.

Henkes adds that the performance of the Top 500 chains managed to surpass its pre-pandemic benchmark, with 2021 sales improving by more than 8% relative to 2019.

When it comes to fast-food chains, chicken concepts maintained a heavy momentum during the past year. “Paced by strong growth of heavy-hitters like Chick-fil-A, Raising Cane’s Chicken Fingers and Wingstop, the chicken menu category achieved double-digit sales growth once again in 2021, as sales expanded by more than 13% on an annual basis,” Henkes explains. 

An evolving situation

Although the foodservice industry is faring positively, it’s not without its challenges. Specifically, the industry is dealing with staffing shortages as a result of the pandemic, experts note. 

“After laying off employees during the depths of the pandemic, it’s been a challenge for many restaurants to get these employees to return,” BMC’s Hemphill says. “Some restaurants have simply tried to do more with less. Others have cut back on service or limited hours of operation. Some restaurants have had to increase pay. It’s an evolving situation.”

Technomic’s Henkes echoes similar sentiments on the staffing challenges currently plaguing restaurants, noting that it’s actually one of the biggest challenges industry operators have. “[Operators] are responding to these challenges by increasing wages to attract talent, and when they don’t have the labor, they’re often shutting down parts of the dining room or closing early,” he says. 

Staffing challenges present an opportunity for change, experts note. Historically low pay, inadequate benefits and long hours that have plagued the foodservice industry for decades are now further compounded by concerns about personal safety and stability raised by the pandemic, according to Mintel’s “2022 US Foodservice Trends” report. 

To attract and retain talent, operators are reassessing their business models to truly take care of their employees as much as their diners, which means menus and work weeks are getting shorter, automation is streamlining food preparation and higher wages and expanded employee benefits are becoming the industry norm, the report continues. 

Beverages’ vital role

Beverage sales have played a vital role in the foodservice industry’s recovery during the past year. 

“In general, beverages are highly profitable,” Technomic’s Henkes says. “As in-person dining has returned, operators have been able to reclaim lost beverage sales. We expect beverages to grow faster than the industry as a result, although the recovery to full pre-pandemic sales levels may take several years with off-premise still an elevated part of the industry.”

Henkes specifically points to the positive performance of premium beverages including mocktails, low-to-no alcohol drinks, bubble teas and cold-brew coffees. 

BMC’s Hemphill adds that beverages with functional attributes such as health and wellness and energy also are driving the market forward.

For beverages to continue their positive performance within the foodservice industry, experts note that restaurateurs are going to have to get creative with their offerings ― and a number of them are. 

For example, Purchase, N.Y.-based iced tea brand Brisk, recently announced the launch of Brisk Dragon Paradise Sparkling Iced Tea, available exclusively at Taco Bell restaurants nationwide. The drink is a blend of tropical dragon fruit, raspberry and blackberry flavors with a hibiscus tea base. 

The Coca-Cola Co., Atlanta, also is getting creative with its beverage offerings. At the 2022 National Restaurant Association Show, it debuted the Coca-Cola Freestyle 8100, a new back-of-house dispenser developed specifically for the crew serve-occasion. The dispenser, complete with more than 200 beverage choices, streamlines drink pouring for foodservice crews, helping reduce drive-thru wait times for diners while providing the quality and variety customers crave, the company stated in a press release. 

New beverage innovations, such as the Coca-Cola dispenser and other retailer-exclusive offerings, will contribute to the foodservice industry’s steady performance this year. As for the industry’s future, experts predict continued recovery, but carefully are watching to see if inflationary pressures or economic downturn will deter performance.  

KEYWORDS: beverage equipment Coca-Cola Freestyle machine foodservice restaurants

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Taylor karg beverage industry
Taylor Karg, former associate editor of Beverage Industry, wrote and edited for the magazine’s print and online components. She also represented the magazine at events and trade shows. Taylor graduated with a Bachelor’s of Journalism degree from the University of Missouri – Columbia.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Wine & Spirits
    By: Lauren Sabetta
  • Younger generation displays unique habits when it comes to beverage consumption

    Generation Z shakes things up in beverage

    Experts share that Gen Z is changing the standard on what...
    Beverage News
    By: Chloe Alverson
Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

halfday sodas

Beverage-makers turn to fiber, prebiotics and more to support consumer needs

Anheuser-Busch Brewing Futures

Anheuser-Busch announces $300 million investment in US manufacturing

smoothie

Opportunities abound for relaxation, stress-relief beverages

Vote for your favorite new product

Have your say in what makes it to the top this month!
Vote for your favorite new product and help us celebrate excellence.


VOTE NOW!

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Califia Yogurt - Beverage Industry

    2018 State of the Beverage Industry: Dairy alternatives drive success for category

    See More
  • Fairlife Core Power Coffee and Dunkin Donuts Dulce de Leche - Beverage Industry

    2018 State of the Beverage Industry: Premiumization in the coffee category drives majority of sales

    See More
  • LIFE WTR Bottles by Pepsi Co. - Beverage Industry

    2018 State of the Beverage Industry: Bottled water remains the No. 1 beverage in the United States

    See More
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing