Your SlideShare is downloading. ×
0
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
2014 Foodservice Equipment & Supplies Industry Forecast
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

2014 Foodservice Equipment & Supplies Industry Forecast

2,436

Published on

Moderator Joe Carbonara spoke with a pair of foodservice industry experts who offered their perspective on the industry’s performance to date for 2013 and provided a glimpse into operating conditions …

Moderator Joe Carbonara spoke with a pair of foodservice industry experts who offered their perspective on the industry’s performance to date for 2013 and provided a glimpse into operating conditions for 2014 as well as identified industry segments that should continue to excel in the coming years.

Published in: Business, Travel
1 Comment
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total Views
2,436
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
71
Comments
1
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • Perceived drivers include:Increased traffic New menu items/menu upgrade Improving economy Expansion/additional locations Increased advertisingPerceived barriers include:Affordable Care ActCustomers’ conservative spendingSlow local or regional economic recoveryIncreased federal/state regulations/taxesCost of food/goods
  • Drivers Better expense management Better technology to help manage expenses including inventory management Increased traffic Reduced overhead through labor and other cuts Better pricing/contracts from vendorsBarriersIncreased staffing and cost of laborIncreased food costsIncreased energy costs Increased healthcare/benefits costUnstable/uneven economic recovery
  • DriversBetter management of operating costs (78%)Better mark-up on menu items (33%)More/better food contracts (33%)Smaller staff/decreased labor costs (33%)More volume purchases to obtain favorable pricing (25%)More vendors willing to discount (20%)Fewer menu deals/discounts (20%)BarriersIncreases in cost of food (81%)Sluggish traffic due to economy (53%)Increases in wages (44%) Increase in price of commodities/raw materials (41%)Increase in price of equipment & supplies (34%)Increase in cost of employee health care benefits (34%)Increase in other employee benefits (34%)
  • Kitchen equipment replacementComm. 69%; Non-Comm. 57%Kitchen renovationComm. 41%; Non-Comm. 27%Dining room renovationComm. 41%; Non-Comm. 20%New constructionComm. 28%; Non-comm. 14%Dining room replacementsComm. 24%; Non-Comm. 16%None of theseComm. 14%; Non-Comm. 31%
  • Factors impacting operators’ 2014 budgets.Age of current equipment/failure rate; repair/service becoming too expensiveOpening new locationsRemodeling/reconfiguring/refitting existing locationsLooking for efficiencies through equipment and new design
  • Commercial:Perceived qualityPriceService and SupportExperience with brand/ManufacturerNon-Commercial:1. Price2. Experience with brand/manufacturer3. Perceived quality4. Reputation of the brand/manufacturer
  • Interesting to note that 48 percent of the operators surveyed do not make E&S purchases online. Among commercial operators making online purchases, they do so on average 11.7 percent of the time.Among non-commercial operators making online purchases, they do so on average 6.8 percent of the time.
  • Net growth rate: : 2013: +5.38%2012: +4.20%Interesting to note that 56 percent of the dealers report this year has been about what they expected. And 35 percent report 2013 was better than expected. Only 9 percent say this year was worse than expected. That means the dealer community had reasonable expectations and seems to be in tune with client needs and plans.
  • Primary cooking equipment is playing a more important role in 2013, taking over the top spot from refrigeration/ice machines. Primary cooking equipment was mentioned in 61% percent of the responses last yearTop changes in customer purchasing habits include:Repairing more equipment than replacing (46%)Smaller order size (35%)Canceled/put projects on hold (33%)Purchasing more used equipment (31%)Top changes dealers report making in their purchasing habits include:Consolidated purchases w/manufacturers (63%)Larger but less frequent purchases (43%)Maintain lower inventory (37%)
  • Percent of dealers reporting a decrease in gross profits in 2013 doubled from 2012. DriversPrice increases (42%)Better prices from manufacturer (31%)Greater emphasis on high margin sales (27%)Lower operating expenses (18%)Expansion (8%)Service volume (6%)BarriersDiscounting by competition that leads to margin erosion (75%) Online suppliers can sell cheaper (65%)Increase in low-margin purchases (63%)High transportation/freight costs (55%)Higher overall operating cost (38%)Higher prices from MFRs (25%)High raw material cost forcing increase in product cost (13%)
  • Dealer sales growth drivers…Design build – 51%Replacement – 34%Renovations – 15%
  • Segment opportunities:CasualFast-casualFamily diningLong-term healthcareSegments with declining opportunities:Fine diningMilitarySchoolsRecreation
  • Transcript

    • 1. Foodservice Equipment & Supplies’ 2014 Industry Forecast
    • 2. Today’s Agenda  Review data from FE&S’ 2014 Foodservice Equipment and Supplies Industry Forecast.  Explore the economic issues impacting the foodservice industry with industry experts Hudson Riehle and Darren Tristano.  Forecast the operating environment for 2014.  Answer your questions.
    • 3. Meet Our Panelists Darren Tristano Executive Vice President, Technomic Twitter: @darrentristano Hudson Riehle Sr. VP, Research & Knowledge Group National Restaurant Association Twitter: @HudsonRiehle
    • 4. Foodservice Equipment & Supplies’ 2014 Industry Forecast These slides are part of a free webcast, available until October 2014. Click to access it here: http://www.fesmag.com/2014forecast
    • 5. 2014 FOODSERVICE OPERATOR OUTLOOK
    • 6. Operators: 2013 Anticipated Sales Compared to 2012 Net growth rate: 2013: +3.50% 2012: +3.37% 2011: +2.20% Decrease 20% Increase 44% 2013 Change by Market Sector Stay the same 36% Comm. Non-comm Increase 53% 36% Same 27% 50% Decrease 20% 14%
    • 7. Operators: Projected Gross Profit for 2013 Net growth rate Gross Profit: Decrease 26% 2013: +0.8% 2012: +0.7% 2011: +0.1% Increase 33% 2013 Change by Market Sector Comm Non-comm Increase Stay the same 41% 40% 28% Same 20% 48% Decrease 40% 24%
    • 8. Operators: Anticipated Sales Growth for 2014 Decrease 11% Net projected growth rate 2014: + 3.72% Increase 49% 2014 Change by Market Sector Stay the same 40% Comm Non-comm Increase 63% 40% Same 27% 48% Decrease 10% 12%
    • 9. Operators: Projected Gross Profit for 2014 Decrease 16% Net growth rate 2014 Gross Profit: + 1.23% Increase 41% 2014 Change by Market Sector Stay the same 43% Comm Non-comm Increase 47% 37% Same 30% 49% Decrease 23% 14%
    • 10. Operators: 5-Year Gross Profits 60% 50% 40% 30% 20% 10% 0% 2009 2010 Increase 2011 Remain the Same 2012 Decrease 2013
    • 11. OPERATOR PURCHASING BEHAVIORS
    • 12. Operators: Activities Planned for 2014 60% Kitchen Equipment Replacement 33% Kitchen Renovation Dining Room Renovation 29% New Construction 20% Dining Room Replacements 19% 25% None of these 0% 20% 40% 60% 80% 100%
    • 13. Operators: Percent of 2014 E&S Budget by Activity Type Green/ Sustainable Initiatives 6% New Construction 11% Renovations 24% 2014 Change by Market Sector Replacement Purchases 59% Comm Non-comm New Construction 13% 10% Renovation 30% 21% Replacement 52% 62% 5% 7% Green
    • 14. Operators: 2014 E&S Budget 2014 E&S Budget 2014 E&S Budget Growth 9% Decrease 12% Increase 43% 19% $2.5 million or more $500K-$2.49 million 30% $100-$499.9K Remain the same 45% 42% Comm Non-comm Increase 40% 44% Same 47% 44% Decrease 13% 12% Under $100K
    • 15. Operators: Percent of E&S Budget by Product Category 2014 2012 2011 13.6% 14.9% 17.6% 11.9% 17.9% 2013 10.9% 5.5% 5.7% 12.4% 9.6% 11.6% 5.0% 9.8% 8.0% 10.8% 4.6% 11.2% 8.0% 8.3% 4.7% 4.5% 6.0% 10.4% 10.0% 11.8% 4.1% 4.4% 5.0% 4.3% 4.0% 3.3% 3.4% 3.8% 14.9% 16.2% 17.1% 14.2% 9.2% 8.3% 8.7% 9.8% 6.8% 6.3% 11.5% Primary Cooking Eqpt. Refrigeration Warewashing/ Safety Food Prep Eqpt. Serving Eqpt. Storage & Handling Eqpt. Smallwares Tabletop Items Furnishings Paper Goods/ Disposables Jan/San Supplies
    • 16. Operators: Percent of E&S Budget by Product Category Commercial Non-Commercial 15.8% 25.8% 10.3% 5.3% 9.9% 13.5% 3.9% 8.4% 5.3% 11.2% 2.6% 3.1% 17.8% 11.5% 6.4% 4.6% 7.3% 3.3% 5.9% 10.9% 10.3% 6.9% Primary Cooking Eqpt Refrigeration Warewashing/ Safety Food Prep Eqpt. Serving Eqpt. Storage & Handling Eqpt. Smallwares Tabletop Items Furnishings Paper Goods/ Disposables Jan/San Supplies
    • 17. Operators: Percent of E&S Purchases by Channel Cash & On-line Catalog Carry/Club House Stores 8% 2% Direct from MFR 12% Other 2% Traditional E&S Dealers 50% Change by Market Sector E&S Dealers Comm 43% Non-comm 54% Broadline DSR 20% MFR Direct Broadline Distributors 26% 35% 10% 14% 1% 2% Club store/C&C Online Catalog Other 11% 0% 4% 6%
    • 18. DEALER OUTLOOK FOR 2014
    • 19. Dealers: 2013 Projected Sales Volume Compared to 2012 Decrease 4% Stay the same 21% Increase 75% Trend: (% Better) 2014: 35% 2013: 44% 2012: 29% 2011: 36%
    • 20. Dealers: Product Categories Driving 2013 Sales Growth Primary Cooking Eqpt. 74% Refrigeration/Ice Machines 72% Food Prep Eqpt. 54% Warewashing/Safety Eqpt. 51% Smallwares 39% 39% 32% Storage & Handling Eqpt. Serving Eqpt. 29% Tabletop Items Furnishings 27% 12% Paper Goods/Disposables Janitorial/Sanitation 7% Other 3% 0% 10% Service, Fabrication 20% 30% 40% 50% 60% 70% 80% 90% 100%
    • 21. Dealers: Projected 2013 Gross Profit Net growth rate Gross Profit: Decrease 16% 2013: +1.80% 2012: +3.76% Increase 45% Stay the same 39%
    • 22. Dealers: Projected 2014 Sales Growth Decrease 5% Stay the same 15% Net projected growth rate 2014: + 6.48% Increase 80%
    • 23. Dealers’ Booked Business: Next Fiscal Year Compared to This Time Last Year Net rate ahead of last year: Less 11% Trend: (% More) 2013: 46% 2012: 49% 2011: 45% 2010: 34% 2013: +3.80% 2012: +2.41% More 46% Same 43%
    • 24. Dealers: Product Categories Driving 2014 Sales Growth 77% Refrigeration/Ice Machines Primary Cooking Eqpt 70% Food Prep Eqpt 56% Warewashing/Safety Eqpt 47% Smallwares 47% Storage & Handling eqpt 37% Serving Eqpt 37% 33% Tabletop Items Furnishings 28% 19% Janitorial/Sanitation Paper Goods/Disposables 14% 4% Other 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
    • 25. QUESTIONS FOR OUR PANELISTS
    • 26. What impact, if any, did the government shutdown have on the foodservice industry?
    • 27. FE&S 2014 Equipment and Supplies Forecast Assessing the shutdown: Impact was mostly regional and probably did more damage to the consumer’s psyche. 21 percent of consumers expect the economy to be better in 6 months, while 26 percent expect things to be worse. Restaurant operators see things in a similar light: 23 percent expect improvement, 22 expect things to be worse and 55 percent anticipate the status quo.
    • 28. FE&S 2014 Equipment and Supplies Forecast Consumers’ mindset: Consumer confidence has yet to rebound Slightly more cautious with spending but feel better about their own situations Facing a handful of key concerns including gas prices, grocery prices, their own financial health, healthcare costs and job security
    • 29. What will 2014 look like for the foodservice industry?
    • 30. FE&S’ 2014 Equipment and Supplies Forecast Technomic’s take: 2013 will see industry sales grow by 3.8 percent, down slightly from 2012’s 5.2 percent In 2014 the industry will experience 4.1 percent nominal growth, 1 percent real growth Continued mixed results in the coming year
    • 31. FE&S’ 2014 Equipment and Supplies Forecast Technomic’s projected growth rate by segment: Limited-service restaurants will grow by 4 percent in 2013 and 4.5 percent in 2014 Full-service restaurants will grow by 3.5 percent in 2013 and 2014 Bars and taverns will grow by 4.5 percent in 2013 and 5 percent in 2014 In other words, restaurants will be in a take-share mode in 2014.
    • 32. What are some industry bright spots heading into 2014?
    • 33. FE&S’ 2014 Equipment and Supplies Forecast Three reasons for optimism: 93 percent of consumers say they enjoy going to restaurants One out of two consumers say they are not dining out as often as they would like Industry hiring up; 294,700 positions over last year Restaurants report sales and traffic numbers up
    • 34. FE&S’ 2014 Equipment and Supplies Forecast Fast-casual remains a beacon of hope: Technomic projects growth rates of up to 10 percent in the next 3 to 5 years Lots of demand for fast-casual restaurants Franchising is a key factor in growth Segment resonates with Millenials, the top dining out generation
    • 35. What are some reasons for concern heading into 2014?
    • 36. FE&S’ 2014 Equipment and Supplies Forecast Three reasons for concern heading into 2014: 1. Potential for more government gridlock after the first of the year 2. Industry growth rates still below prerecession levels 3. Job creation still slower than previous recoveries
    • 37. FE&S’ 2014 Equipment and Supplies Forecast Five Biggest Business Challenges Facing Operators: 1. Increasing food costs 2. Unknown healthcare costs 3. Labor costs 4. Retaining quality employees 5. Energy and other operating costs Source: FE&S’ 2014 Operator Forecast Study
    • 38. How are operators adapting to today’s business climate?
    • 39. FE&S’ 2014 Equipment and Supplies Forecast Ways operators are adapting: Getting overhead under control, which includes doing more with less square footage Developing new prototypes to gain access to new geographic markets Continuing to invest in their businesses to serve other dayparts and take advantage of off-premise dining opportunities Driving revenues through sales of menu items consumed off premise
    • 40. FE&S 2014 Equipment and Supplies Forecast Ways operators are adapting: Managing food costs Looking to drive greater efficiencies into their businesses
    • 41. Questions? ©2011 Foodservice Equipment & Supplies – 2012 Industry Forecast
    • 42. Key Takeaways  2013 will be a good year but not as good as 2012  Uncertainty continues to cloud the industry’s outlook  2014 will bring minimal growth, resulting in a take-share environment for restaurants  Operators have held off as long as they can and need to start replacing key pieces of equipment  Margins remain compressed for operators and suppliers alike
    • 43. Reminders  You can download today’s slides by clicking on the green folder below.  This webcast will be available in archive format shortly via www.fesmag.com.  View past FE&S webcasts at: www.fesmag.com/resources/webcasts  We are listening, too: send your ideas for future webcasts to joe@zoombagroup.com.
    • 44. Keep in Touch! Visit FE&S online at: www.fesmag.com Follow us on Twitter: @FESmagazine, @FES_Editor ©2011 Foodservice Equipment & Supplies – 2012 Industry Forecast

    ×