The article “Consumer Foodservice
Global Overview: Finding Growth in a Fragmenting World” analyses how the food service industry was in 2010 and where it is projected to be through 2015
from a global prospective. This report projects the recovery progress from the
year following the recession and years to come through examining the growth
percentages of transactions, outlets, and sales in the food services industry
and concludes that the industry will slowly continue to grow
In 2010,
while there was all around growth in percentages, full service restaurants were
the most lucrative, producing half of the sales for the industry as whole.
China is a main contributor to this, holding the most full-service restaurants
world-wide. In fact, Asia is the strong forces behind the restaurant industry;
Asia Pacific having 11,000 shares in 2010. I found this most interesting
because the U.S. is so seemingly dominated by franchises and fast-food that I
didn’t take into account that this may not be the case globally. 50% of chain
sales come from North America however; our weak economy cannot globally dominate
when the economies of other places such as Asia are so strong.
One
interesting point about the industry that I found is although the North
American sales in chains are strong; the expected growth in the future is
stagnant. There are several well developed brands in the economy, but according
to the report the expected new markets along with the demand for value pricing
will slow down sale growth. It is suggested that for further progression in the
industry, more chains need to be throughout China, India, and Brazil because of
their strong foodservice success. This makes
me wonder why there is not a stronger presence of chains in these areas already.
Were there setbacks in attempts to franchise there and if so what were they? Or
were there even that many attempts? Are they present there and just failing?
I
feel that the future of this industry will continue to progress because the
demand of food will always exist because it is a necessity; this is when
economics comes into play. The people’s taste may change, and that could shift
the demand curves for different types of food industries—such as fast food or cafés--up
or down. However, the overall industry of food service will benefit from all of
the combined demand, making progression overtime.
Cited Source:
(2011). Consumer Food Service Global Overview: Finding growth in a fragmenting world. Global Briefing , Retrieved from http://www.portal.euromonitor.com/Portal/Pages/Analysis/AnalysisPage.aspx
I definitely agree with you the quick service restaurants will continue to grow—not so much because food is a necessity, but because the world is becoming such a fast-paced place where people (young and old) hardly have time to sit down and eat a home-cooked meal. Quite frankly, eating breakfast at McDonald's and grabbing take-out from Applebee's is much more practical. Perhaps, the reason that growth of these restaurants in North America will not be as large as in the past, though, is because the population is becoming more health-conscience. Therefore, the more demand there is for healthier food in restaurants and the like, the more prices will increase and then consumers will be less willing to spend their money on the more expensive food.
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