Recession Slams On Restaurant And Foodservice Industry

The deep global recession has affected the public's appetite for patronizing foodservice/restaurant outlets, especially in developed economies.


According to NPD.com, ``Feeling the sting of a bleak global economy, consumers around the world cut back on visiting foodservice outlets in the first quarter of the year, according to The NPD Group, a leading market research company. NPD’s CREST®, which tracks consumer usage of foodservice in Canada, France, Germany, Italy, Japan, Spain, United Kingdom, and United States, reports foodservice traffic declines in France, Germany, Italy, Japan, Spain, United Kingdom, and the United States. Traffic was essentially flat in Canada. Total spending at foodservice outlets fell in all of the reported countries with the exception of Canada and the United States.

``With the exception of Japan, traffic counts declined at quick service (fast food) restaurants in the monitored countries. Full service foodservice concepts posted virtually no growth around the world. Most foodservice daypart segments (i.e. morning meal, lunch, supper, and evening snack) declined in nearly every country. Supper was weak everywhere but France. Germany and the United States experienced some growth in the morning meal daypart. The evening snack daypart showed the most encouraging trend, with increases or flat results in three countries."(bold emphasis added)

The Wall Street Journal adds, ``Spending fared somewhat better: the average spent per check declined in Japan, the U.K., Italy and Spain, but rose slightly in the U.S., Canada, France and Germany.

``In dollar terms, the average check remains highest in France, at $8.11, followed by Japan at $7.87 and Germany at $7.55. Diners spent the least per meal on average in Italy, just $5.56. The U.S. fell roughly in the middle, with a $6.51 average check."

``The restaurant industry has suffered deep cuts amidt consumer pullbacks. In the U.S., restaurant traffic fell at the steepest pace since 1981 in the spring quarter ended May 2009, according to NPD.

``In response, many restaurants have been slashing prices in a bid to lure diners through the door - a strategy that has eaten into profits while not drawing as many customers as restaurants hoped".

Presently booming markets, which has apparently lifted sentiments, ought to bring on some improvements to this bleak picture.