Technomic Releases Its 2014 Foodservice Industry Forecast

Universities, hospitals, senior living expected to be among the industry's bright spots.

May 22—The feeding operations of colleges and universities, hospitals and senior living facilities are expected to outpace the rest of the foodservice industry in sales growth during 2014, according to a new forecast from Technomic Inc.

Since releasing its last forecast in January 2013, the Chicago-based foodservice research firm has seen slight slippage in 2013 growth expectations for the overall industry, from a nominal 3.9 percent (in January) to 3.8 percent (current projections).

But some improvement is expected over the longer term, especially in non-commercial foodservice, with 2014 industry growth forecasted at 4.1 percent. Colleges and universities, hospitals and senior living are all expected to outpace the restaurant side of the industry.

"In general, foodservice is still facing headwinds that are tempering consumers' willingness to eat out," explains Joe Pawlak, Technomic Vice President. "Slow employment gains and stagnant disposable personal income are a drag on growth. Coupled with the January tax holiday expiration and pending government spending cuts from sequestration, consumers are more cautious about their own discretionary spending."

Pawlak noted that better foodservice growth is anticipated in 2014, but consumer uncertainty surrounding their share of costs resulting from implementation of the Affordable Care Act are expected to moderate industry results.

More From FoodService Director

Ideas and Innovation
staff pack

To keep staff motivated, we locked them in a room together. As part of a midsemester training session, we formed work groups and sent them to a local Escape Room to see which team could play the game together most effectively and escape first. Not only was this training a great team-building experience, but it supported a local new business and gave our staff a memorable experience.

Ideas and Innovation
star employee

Senior leadership meets twice a year to do organizational talent planning for every position from the top down. We talk about who are the potential high-performers, and go through how they can grow. People are your differentiator—you need to take care of your assets, and your assets are your human resources.

Industry News & Opinion

Students at the University of Michigan in Ann Arbor will be served student-grown produce from the campus farm at dining halls this fall, M Live reports.

The dining team received its first batch of produce from UM’s on-campus farm in June, after students received the proper USDA certification to grow, harvest and deliver food to campus dining halls. In order to figure out what produce is needed, students communicate with the dining department weekly, and Michigan Dining purchases items accordingly.

"The students are involved from seed to plate," Executive Chef Frank Turchan...

Sponsored Content
college students eating

From Ovention.

Today’s colleges and universities know they should offer more than a large selection of breakfast cereals in the morning and chicken tenders at lunch to appeal to students. When it comes to what’s trending on campuses, here’s a look at what directors can tune into to boost engagement.

1. Expanded dining hours

Late-night options have long been a popular fixture on college campuses, but if it’s too late, students often choose to venture to off-campus retailers to satisfy their cravings. According to Technomic’s 2017 College & University Consumer Trend...

FSD Resources