Food & Beverage

Calmer seas ahead for U.S. foodservice industry

Adobe Stock

February 1, 2023

After several years of pandemic disruption the U.S. foodservice industry has stabilized "pandemic losses," with pockets of growth that indicate calmer seas ahead, according to research from The NPD Group.

U.S. commercial foodservice customer traffic to restaurants and other foodservice outlets ended 2022 flat compared to a year ago, but consumer spending at foodservice outlets was up 4% due to higher prices, according to a press release on the research.

Retail foodservice, specifically convenience store foodservice traffic, was a growth area with convenience store visits up 2% last year versus the year before.

Restaurant traffic, representing most of all foodservice visits, was down 1% in the 12 months ending December versus a year ago, with most of the visit losses from full-service restaurants.

Visits to quick service restaurants, representing 82% of total restaurant traffic, were flat last year versus the prior year.

Morning meal has been a bright spot for foodservice over the past two years, and restaurants and retail foodservice have contributed to the growth. The breakfast and morning snack period traffic to restaurants and retail foodservice outlets increased by 2% in 2022, over a double-digit gain in 2021. Restaurant morning meal visits were up 2% in the 12 months ending December compared to the prior year's double-digit increase. Traffic at the retail foodservice morning meal, most of which was to convenience stores, was up 4% last year, following a 3% gain in 2021.

Digital ordering for carry-out has continued to grow since the height of the pandemic, according to the release. Over the past three years, total restaurant digital orders for carry-out increased by 115%, and in the 12 months ending December, increased by 4% compared to the year before. Quick service digital orders for carry-out grew by 9% in 2022 versus the prior year and have increased by 108% over the last three years.

"Looking forward to 2023, we anticipate improvements in supply chain disruptions, inflation deceleration and increased consumer use of foodservice," David Portalatin, NPD food industry advisor and author of Eating Patterns in America, said in the release. "And while we expect challenges in 2023, we believe the U.S. foodservice industry will continue down the path of recovery this year, although growth will be modest."