The restaurant industry continues to struggle in the face of the lagging economy, rising commodity prices, and reduced consumer confidence. However, according to the National Restaurant Association, the industry is on target to record sales of $604 billion in 2011, a 3.6 percent increase compared to 2010′s revenue levels, though still below 2005-2006 levels. In contrast, Chicago-based market research firm Technomic projects the industry will realize a 0.6 percent decline in sales for 2011 (see previous post).
Technomic conducted a study of 500 consumers with many indicating a continued lack of confidence in financial recovery and an intention to limit or reduce restaurant spending in 2012. So, as we look ahead to 2012, most industry observers believe that we will have to scratch and claw to achieve growth. It remains a “take share” environment across the industry - foodservice taking from retail -distributors taking from other distributors, sales agencies taking from other agencies, manufacturers taking from manufacturers, and restaurants taking from restaurants. Consolidation will continue. Cost cutting without investment in more efficient technology will hinder results. Those who continue to do “business as usual” will likely struggle and lose share.
Whatever your place in the foodservice market, if you are not the low-cost leader or a true innovator, then understanding the needs and wants of your customer base and adjusting accordingly will help you win. Foodservice Rewards offers operators a way to get more when they purchase brands. The program offers manufacturers an extremely efficient way to know their operator customers – not just the big ones. Next year, Foodservice Rewards will be celebrating our 10th anniversary of delivering measurable results for our sponsors. Many in our industry tend to hang on to “old ways” of doing things when we know they are neither effective nor measurable, but rather they keep us “busy”. As we look to 2012, let’s all make a resolution to try something new and set a measurable goal against it!