Sales of foodservice equipment and supplies returned to positive territory and beat industry estimates during the fourth quarter of 2024, per data from the Manufacturers Agents Association for the Foodservice Industry (MAFSI).

The MAFSI Business Barometer reported a 0.2% increase in equipment and supplies sales, which is greater than the 0.6% decline reps had forecast. This also snapped a streak of 13 consecutive quarters of declining sales, per MAFSI.

Looking ahead, reps project equipment and supplies sales will increase 1.2% for the first quarter of 2025 and 2.7% for the full year.

In terms of sales by product category during the fourth quarter of 2024, furniture led the way with a 1.2% increase, followed by equipment at 0.5%. Supply items and tabletop items saw sales decline 0.8% and 1.3%, respectively. Sales by region also varied significantly. Canada and the Southern U.S. saw sales increase 2.8% 1.8%, while the Western U.S. was at flat and the Midwest and Northeast saw sales declines of 0.3% and 1.9%.

On another positive note, 38% of reps reported an increase in quoting activity and only 13% report a decline in this all-important activity. Also, 31% of reps saw an increase in consultant activity, while only 12% reported a decline in this area. Taken together, these metrics indicate a strengthening of the foodservice equipment and supplies sales pipeline.

“Obviously, the major caveat is the impact of tariffs both on stainless steel and aluminum, and products from Canada, Mexico, China, Europe and elsewhere. Likely this will lead to higher prices and shrinking demand as end users are already impacted by higher labor (costs) and food prices,” per the report’s executive summary written by Michael Posternak, CEO PBAC and Associates, Eastchester, N.Y. The tariff issue makes it nearly impossible to forecast. “Manufacturers are leaving all options open so as not to get caught in a price squeeze.”