News

China, Canada lead global foodservice growth

October 10, 2010

The global foodservice industry experienced growth from increased consumer spending, according to NPD. Canada and China especially helped drive the trend.

Although restaurant and foodservice visits are still down in most countries around the world, the global foodservice industry experienced increased consumer spending overall in the quarter ending June 2010 compared to the same quarter a year ago.

With China's economic recovery and increased consumer confidence, foodservice traffic increased by 13 percent, and Canada’s improved by a more modest gain of 2 percent, according to NPD's Crest, which tracks commercial foodservice usage. Spending also increased in the United States, the United Kingdom and Germany.

Countries with the steepest traffic declines in the second quarter include Italy, Japan and Spain.  Spending increased, at least slightly, in the United States, Canada, United Kingdom, Germany and China. Japan, where traffic was flat, was the only country with a measurable decline in the amount spent per person.

Country-specific trends

In China, where Western quick-service restaurants play a small role, NPD found foodservice booming in the eight major Chinese cities it tracks. The 14 percent increase in traffic was primarily driven by visit frequency.

"Chinese foodservice consumers cautiously increased their restaurant visits and new visitors started to dine out," said Christina Ma, NPD manager, China foodservice. “Visits to western quick-service restaurants increased significantly as consumers switched from full-service to quick-service restaurants.”

The increase in consumer spending at foodservice outlets for two consecutive quarters in the United Kingdom reflected the country’s somewhat improving economy.

"Although traffic was still down for most foodservice segments except quick service, the rate of decline in the second quarter was slower than the first quarter," said Guy Fielding, NPD director of business development, United Kingdom foodservice. “The travel and leisure foodservice segment and full service restaurants saw the rate of visit declines halved.