This Week in Foodservice provides a high-level summary of the economic data, financial news, menu updates and numerous other statistical packages and developments that impact foodservice operators, consultants, dealers, manufacturers, reps and service agents. In his weekly blog, Jerry Stiegler aggregates key industry data through his infamous Green Sheet and provides some brief analysis that will help foodservice professionals navigate the sea of information. Jerry is a long-time member of the foodservice industry, whose experience includes working for Restaurants & Institutions magazine and FE&S.
The No. 1 foodservice chain will be … Starbucks? Operators continued to hire in December. The NPD Group sees restaurant traffic stalled this year. Prediction is that menu prices will remain high but restaurants will offer deals and promotions. Well known Wall Street analyst Mark Kalinowski predicts that Starbucks will increase its restaurant count by 8.4 percent and same-store sales by +5.0 percent in 2017. Further, he believes some time in the future Starbucks will have the industry’s largest market capitalization, bypassing current leader McDonald’s.
The Food Institute sets “real sales” at restaurants higher than other projections; Worldwide restaurant traffic rose in the third quarter and Technomic believes foodservice sales will improve in 2017.
U.S. retail sales were almost flat in November but restaurants sales increased. One source speculates that consumers are still going to restaurants but avoiding major chains. Knapp-Track sales data remains consistently negative. Menu prices continue to increase.
Foodservice executive picked for Trump’s cabinet. Foodservice traffic goes negative in the third quarter. Chipotle will try and restore good service as move to recover. McDonald’s will reintroduce their McCafe concept next year. These stories and a whole lot more this week in foodservice.
Are healthier fast-food chains the wave of the future? Technomic reduces its estimated restaurant sales growth in 2016 and 2017. Foodservice operators doubled the number of people hired in November from October. Technology isn’t going to save restaurants.
Stories worth another look: Consumers ate out on Thanksgiving and Black Friday. The Department of Labor’s new rules on overtime pay were put on hold by a federal judge. Dunkin’ Donuts to de-emphasize food sales and push beverages.
Stories worth another look: U.S. retail sales were up in October but restaurant sales fell. Initial jobless claims hit a 40-year low. Home delivery could drive millions in restaurant sales. McDonald’s newly designed operations are up and running.
Stories worth a second look: Fresh perspective on the “restaurant recession.” Starbucks isn’t worried about the impact of people forsaking brick and mortar retailers. Starbuck’s Roastery is enjoying success. C-stores future is in foodservice. Burger King makes a commitment to grow in Canada.
Stories worth a second look: Boston Globe columnist takes a look at effects of minimum wage; the foodservice industry added over 9,000 employees in October; Buffalo Wild Wings has major expansion plans for its taco chain; YUM’s China operation is officially a separate company; and the NFL’s declining TV ratings are getting the blame for soft sales at some chains. Plus, we have the latest comp store sales for over a dozen chains.
This Week In Foodservice: Restaurants Meet Customer Demands (Minus Noise); Obamacare Impacting Restaurant Sales (Says One); and Chipotle Abandons Asian Concept (in Favor of Burgers and Pizza)
Stories worth a second look this week: How Americans really feel about cooking; menu prices continue to climb; research indicates a $15 an hour wage will hurt those it is supposed to help; Millennials are the biggest spenders when it comes to eating out; and McDonald’s surprises Wall Street.