Foodservice businesses around the country are going through unprecedented challenges due to the COVID-19 pandemic. However, as restaurants and other foodservice retailers strive to stay in business, understanding and leveraging the latest data trends can be a key success factor for staying afloat. Luckily, with the help of modern technology, it’s possible to have a glance at what’s going on in the US foodservice market right in front of your eyes.
If you’re a restaurant technology provider, manufacturer, supplier, or even a sales professional, there’s a lot you need to know about the US foodservice market. In this article, we’ll explore the ins and outs of the market, discuss trends that could be helpful when targeting the US food industry, and how to use data-driven insights to gain a better understanding of the space.
Overview of the US Foodservice Market
The US foodservice industry is ever-changing and is consistently reinventing itself. According to a report by the National Restaurant Association, the US restaurant industry generated $863 billion in sales in 2020. Plus, this sector is projected to grow at 5.7% per year till 2029, reaching $1.2 trillion. As the industry continues to expand, so do the opportunities and challenges.
In the US, restaurant and other foodservice categories make up a significant portion of the overall food economy. This market is quite diversified, and includes fast-casual and fast-food restaurants, full-service restaurants, catering operations, theme restaurants, catering operations, cafeterias, kiosks, and franchise operations.
Also, the US foodservice market is highly regulated, making it important to keep up with state and federal regulations that impact the industry. This is especially true for quick-service restaurants, which are more tightly regulated than other types of dining operations.
Data-Driven Insights for the US Foodservice Market
Understanding the foodservice market requires more than just surface-level insights. Advanced data analytics can help you uncover comprehensive information including operating costs, menu items, consumer tastes, competition, and many more. Utilizing data-driven insights can be a powerful tool in helping you understand the larger foodservice market, as well as enabling you to uncover actionable insights and ideas that would take you a long time and lots of resources to uncover on your own.
Brizo is a foodservice market intelligence platform that provides comprehensive insights and analytics to help businesses gain comprehensive market understanding. Their insights include in-depth menu data and restaurant tech coverage, giving you detailed insights into key trends and offerings in the foodservice market. Plus, unique data fields give you detailed insight into price points, customer profiles, competitive landscape, and more.
Using data-driven insights, you can enhance your decision making-process and gain powerful insights into the market. This includes identifying high-opportunity areas, gaining a better understanding of customer behaviour, and creating more targeted marketing and sales strategies.
Additionally, you can use data-driven insights for sales prospecting, marketing, and searching for new kitchen and production opportunities. This includes streamlining your production innovation and strategically expanding your brand.
Challenges and Opportunities in the US Foodservice Market
One of the biggest challenges to both consumers and businesses in the foodservice market is rising food prices. As the cost of ingredients, labor, and other inputs continue to increase, food costs will inevitably rise. This is especially challenging for businesses with slim margins, and can create a challenge to staying competitive or even staying afloat.
Furthermore, restaurants will also have to contend with changing consumer preferences. There is increased consumer demand for tasty, healthier, and organic food options. This can to create unique opportunities for businesses willing to meet customer demands, while also making it a challenge to stay ahead of the competition.
Lastly, modern restaurant technology also presents challenges and opportunities to restaurant owners. From touchless ordering systems to online delivery, restaurants must adapt with the times to stay competitive. Restaurateurs must also contend with cyber-security threats, maintaining efficient kitchens, and customer relations. Understanding and leveraging modern technology while finding a balance between convenience and cost can be challenging, yet also a great opportunity for restaurants who are willing to take on the challenge.
Final considerations
The US foodservice market is undergoing rapid changes that require businesses to stay ahead of the curve. Foodservice providers must contend with rising food prices, changing consumer preferences and restaurant technology to remain competitive and profitable. Luckily, data-driven insights can empower businesses to gain comprehensive market understand and gain a competitive edge. From sales prospecting to marketing and production, datasets and analytics can be used to propel your business to the next level.
