Global consumer confidence continues to climb. A hot dog chain prepares to go public while a barbecue company gets ready to take the wraps off a virtual restaurant concept. One high-end c-store concept plans to grow, and grow quickly. These stories and more This Week in Foodservice.

Global consumer confidence remains at a record high, per data from The Conference Board. Overall global consumer confidence rose to 109 in the second quarter of 2021 from 108 in the first quarter. (Any figure greater than 100 is considered positive.) The global index now surpasses the 106 reading registered at the pandemic’s onset in the first quarter of 2021 and is the highest recorded since the survey began in 2005. Confidence rose in 42 of 65 markets surveyed, with the strongest gains in regions like North America and Europe. Not coincidentally, these areas have relatively high vaccination rates. On the other hand, confidence declined in regions wrestling with new infections, low vaccine availability and ongoing economic restrictions.

“Consumer confidence continued to climb worldwide in Q2, albeit at a much slower rate than the 10-point gain recorded in Q1,” says Dana Peterson, chief economist of The Conference Board. “This reflects a global economic recovery that remains highly uneven, with many economies still struggling to contain COVID-19 amid a shortage of vaccines, new variants and supply-chain bottlenecks that are raising prices. Nonetheless, the elevated level of global consumer confidence bodes well for spending and, consequently, the global economic revival in the second half of this year and into 2022.”

In North America, where confidence stood at a strong 110 in the first quarter, it surged to 125 in the second quarter. The Conference Board says this growth reflects continued fiscal and monetary support as well as ongoing vaccination campaigns and loosened mobility restrictions.

Both the Euro Area 16 ( up 7 points to 94) and Europe as a whole (up 5 points to 92) saw confidence climb, led by improving sentiment around financial conditions, per The Conference Board. Decreasing COVID-19 cases and accelerating vaccination rates across most of Europe contributed to the improved outlook from the first quarter’s low base.

Confidence in the Asia-Pacific region remained relatively high in the second quarter, posting a score of 115, down 3 points from the first quarter. A closer look at the data provides a more telling story, though. Sharp declines were seen in countries — led by India — that faced unexpectedly severe second or third waves of COVID-19, per The Conference Board. Sentiment in China rose, but other data suggests the level of confidence among Chinese consumers might be overstated given less optimistic reports on employment, retail sales and household saving.

In Latin America, confidence declined 6 points for a final reading of 93. Only Peru posted a positive gain.

Economic News This Week

• Initial jobless claims totaled 360,000, a decline of 26,000 for the week ending July 10. This represents the lowest number of claims since March 14, 2020, when it hit 256,000. As a side note, the previous week’s claim was revised to 386,00, an increase of 13,000. The 4-week moving average totaled 382,500, a decrease of 14,500 and the lowest total since March 14, 2020.
• Private businesses added 692,000 non-farm payroll positions in June, per ADP’s National Employment Report. Businesses with less than 50 employees added 215,000 positions. Companies with 50 to 499 employees added 236,000 jobs. And large employers, those with more than 500 employees, added 240,000 positions. Overall, this represents a decline from the 886,000 positions added in May, but an increase compared to April and March when 622,000 and 519,000 positions were added.
• Retail sales totaled $621.3 billion in June, up 0.5% from May, per an advance estimate from the S. Census Bureau. This represents an 18% increase compared to June 2020. Total retail sales for April 2021 through June 2021 increased 31.5% compared to the same period in 2020. Retail trade sales increased 0.3% from May 2021 and 15.6% compared to May 2020. Clothing and clothing accessories store sales increased 47.1% from June 2020.
• The Consumer Price Index increased 0.9% in June on a seasonally adjusted basis, per the S. Bureau of Labor Statistics. This was the largest 1-month change since June 2008 when the index rose 1.0%. And this comes on the heels of a 0.6% May increase. Over the last 12 months, the all-items index increased 5.4%, the largest 12-month increase since a 5.4% increase for the period ending August 2008. The index for used cars and trucks increased 10.5% in June. The food index increased 0.8% in June, a larger increase than the 0.4% increase reported for May. The energy index increased 1.5% June.
• Although it may not seem like it, the pandemic-induced recession was the shortest economic downturn on record, according to the National Bureau of Economic Research. In fact, the recession lasted all of two months and was over by April 2020, per the NBER data. The previous shortest recession was six months back in 1980. While short, the 2020 2020 recession were severe. Employers cut 22 million jobs in March and April 2020, and the unemployment rate hit 14.8%, the worst level since the Great Depression. Gross domestic product fell by more than 10%, per a New York Times Report. While the recession may be over, the fact remains the economy continues to deal with it in various ways, most notably supply chain challenges and labor issues.

Foodservice News This Week

• June sales at foodservice and drinking place sales increased 2.3% from May 2021 and 40.2% from June of 2020, per the S. Census Bureau. For the period of April 2021 through June 2021, sales at foodservice and drinking places are up 17.7% compared to January through March 2021. And compared to April 2020 through June 2020, sales for this 3-month period are up 71.8%.
• Chicago-area hot dog chain Portillo’s plans to go public. The restaurant company filed the necessary paperwork with the Securities Exchange Commission. Per various published reports, the company hopes to generate $2.5 billion to $3 billion from the initial public offering. To put that in some context, Berkshire Hathaway paid $1 billion when it acquired Portillo’s in 2014. The chain has remained relatively active in recent years, expanding from its Chicago area home base to the Minneapolis and Phoenix, Ariz., markets. And earlier this summer, Portillo’s announced plans for a drive-thru only location in Joliet, Ill., which is just south of Chicago.
• A virtual restaurant concept prepares to take flight. Wing Boss, as its name implies, is a smoked chicken wing concept Dickey’s Barbecue launched during the pandemic. Now, after operating behind the scenes as a delivery-only concept from more than 70 locations, Wing Boss is ready to step to the front with its first ever brick-and-mortar restaurant. Set to open later this summer in Addison, Texas, the 1,500-square-foot-location will feature a full-service bar and several televisions to allow guests to watch sporting events, etc.
• Upscale convenience store Foxtrot plans to open 50 units over the next 2 years. This comes after Foxtrot raised $42 million in February. Foxtrot aims to have 19 stores by the end of 2021. The chain currently has nine Chicago stores and two each in Dallas and Washington, D.C. Foxtrot’s product mix includes a selection of snacks and grocery items, along with prepared foods, craft beer and wine, which can be delivered to nearby customers in an hour or less.
• Dining and experience-based businesses remain the best way to still draw a crowd. At least that appears to be the thinking among some real estate companies. If you are looking for proof look no further than Pinstripes, a dining and entertainment concept that includes games like bocce and bowling. Next year Pinstripes will open locations in two of Unibail-Rodamco-Westfield’s high-profile U.S. malls, Westfield Garden State Plaza in Paramus, N.J., and Westfield Topanga in Los Angeles. The chain also has development deals in place for up to 20 more units.
• Growth Chains: A&W Restaurants plans to open franchised restaurants in Charlotte, N.C.; Las Vegas; and St. Louis. So far this year, the iconic root beer and burger chain has signed agreements for nine new U.S. franchise restaurants. There are currently more than 900 A&Ws in the U.S. and Asia. Dream Dinners, a family meal kit concept, added its fifth Colorado franchise with the opening of a retail kitchen in Castle Rock. The other Colorado Dream Dinners are in Arvada, Centennial, North Colorado Springs and Parker. The opening — the first of at least three planned for this year — comes as Dream Dinners prepares to relaunch national franchising next month, per a company release. Next month Dream Dinners plans to expand home delivery to areas not served by a local kitchen. In all, customers across 30 states will be able to take delivery of the company’s meal kits. The Dolly Llama, a Los Angeles-based waffle and ice cream concept, inked franchise deals for Tyler, Texas and Jacksonville, Fla. These represent the four-year-old company’s initial entry into franchising.

Editor’s note: Unfortunately, we regret to inform you there will be no Green Sheet this week. We hope to be able to update this next week.