Technomic sees slower restaurant growth in '08
January 23, 2008
by FoodBusinessNews.net Staff
CHICAGO — Nominal growth in the U.S. food service industry is expected to trend downward to 3.6% in 2008 from 5.3% in 2007, according to market research firm Technomic. The research firm cited "a larger-than-expected slowdown in discretionary consumer spending" as the principal driver of the downtrend.
"Because the restaurant industry often serves as a leading economic indicator, our opinion is that the U.S. has most likely entered a recession, or is headed for one," said Ron Paul, president of Technomic.
Technomic said it factored in a 4% rate of inflation in determining real spending will drop in 2008.
According to the forecast, total restaurants and bars nominal growth is expected to decline to 3.8% from 5.9%, with limited service dropping to 5% from 6.6%, full service easing to 2.5% from 5.2%, and bars and taverns holding pat at 4%.