Foodservice consumer spending up but visits decline, reports NPD

Jan. 29, 2015, Chicago – There is good and bad news for restaurant
operators in terms customer spending for restaurant operators, and both
gains and losses for Canada in the third quarter of 2014, suggests
market research by The NPD Group.

The good news is that consumers across
the globe spent more money when they visited restaurants and
foodservice outlets, but the bad news is that they visited these outlets
less in many countries in the third calendar quarter of 2013, the firm said in a news release.

There were consumer spending gains
in Australia, Canada, Continental Europe, except for Italy, China,
Great Britain, and Japan, but traffic losses in Canada, China, Italy,
and Spain.

Consumer foodservice spending in Australia grew by four per cent in the
third quarter compared to same quarter year ago, and traffic increased
by two per cent. Good weather in Great Britain contributed to the two per cent
increase in foodservice consumer spending and one per cent gain in visits,
reports NPD Group’s CREST foodservice market research, which
continually tracks commercial foodservice usage in Australia, Canada,
China, France, Germany, Italy, Japan, Russia, Spain, Great Britain, and
the United States. The United States foodservice market posted a one
per cent increase in traffic in the quarter after more than a year of no
visit growth.

* Russia represents 8 cities ^ China represents 8 cities Trend data not available for Japan for 2014 Source: The NPD Group/CREST© (*In US Dollars – converted 11/06/14)

Visits to quick-service restaurants (QSRs) were mostly flat around
the world in the third quarter compared to same quarter year ago. The
traffic growth in the U.S. was driven by slight gains in the full
service and QSR segments. The Russian market was propped up exclusively
by QSRs, however, on the flip side; China was brought down by a weak QSR
segment. All segments grew in Australia for the first time since 2009.

Breakfast traffic was healthy in many global foodservice markets this
quarter. The growth in the breakfast daypart propped up the weak
Continental European markets.

Lunch, the key daypart for the foodservice
industry in every country, was up in six of the global markets tracked. Without a strong lunch daypart, no foodservice market is
likely to grow. This upturn for lunch may be a sign of a turn toward
growth in some global markets.

Restaurant chains drove many of the markets tracked by NPD Group.
Australia, the strongest global foodservice market this quarter, is the
only country where both chains and independents grew. Food safety
concerns had a significant negative impact on restaurant chains in
China.

“The state of the global foodservice markets in the third quarter of
2014 was a reflection of each country’s economic conditions and its
consumers’ confidence in their own financial situation, said Bob O’Brien, NPD's global senior vice-president foodservice, in the release.
“The more stable economies will see foodservice continue to grow in
2015, but recent developments in monetary valuations, travel alerts, and
growing consumer concerns will most likely have a negative impact for
many foodservice markets across the globe at least in the first half of
the year.”