Milling & Baking News Corporate Profiles - 2015 - (Page 58)

Industry Food Service Review: Food Service Food service Simple ingredients, complex flavors T he pace of restaurant industry growth has accelerated, driven by lower gas prices, rising incomes and an improving job market. Last year, the total restaurant industry grew 3.8% to achieve U.S. sales of $466 billion, according to Technomic Inc., Chicago. The industry has been forecast to grow 5.3% this year, and restaurant cumulative growth is expected to surpass peak levels in 2007 by 2017, Technomic said. "Consumers are definitely more optimistic," said Mary Chapman, senior director of product innovation at Technomic, in an August interview for Corporate Profiles. "Confidence has returned to pre-recession levels. But consumers are still focused on value. It's not about the lowest rock-bottom price as it is what they get for their money." Operators have faced mounting challenges this year from labor pressures, regulatory issues, higher food costs and an egg shortage in the wake of a highly pathogenic avian influenza outbreak. Top fast-food players continued to struggle to reverse lagging or burrito chain overcame a shortage of pork in its restaurants. Starbucks' traffic and sales continued to climb on expanded food offerings and seasonal beverage innovation. Despite challenges, more are optimistic about profit growth; 41% of operators surveyed by Technomic expect to generate higher earnings, up from a mere 9% in 2009. "They're optimistic overall because, long term, they see the worst of recessionary trends are behind us," Ms. Chapman said. "They see that consumers are interested in dining out and learning about food... "That said, there are a lot of people who want to feed those needs." Competition has emerged from convenience stores, improved grocery store offerings and on-line retailers, she said. "What restaurants, particularly Q.S.R.s, are focusing on are things like craveable items, the experience factor and the speed of drive-thru, which is always going to be faster than getting out of your car and going into a place," Ms. Chapman said. "So, they're Panera Bread is one of the companies removing artificial ingredients from its menu. declining sales. A new chief executive officer took the reins at McDonald's early in the year and announced aggressive turnaround efforts for the global business while cautioning against expectations of a quick fix. A comprehensive menu overhaul at Pizza Hut has failed to deliver desired results for parent company Yum! Brands. Subway has slipped down the rankings of the country's food chains after sustaining a 3% U.S. sales decline in 2014. Within the fast-casual segment Chipotle Mexican Grill's historically strong sales growth slowed in recent quarters as the 58 \ October 2015 trying to focus on what they do that these other guys can't." For the first time on record, monthly sales at restaurants surpassed grocery store sales, according to the National Restaurant Association, Washington. The gap between grocery store sales and restaurant sales began narrowing in 2010, as more consumers began purchasing groceries at alternative retail formats. December 2014 marked the first month on record that restaurant sales exceeded grocery store sales, and the trend accelerated in the months following. In June 2014, grocery store sales exceeded Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry Corporate Profiles

Table of Contents for the Digital Edition of Milling & Baking News Corporate Profiles - 2015

Milling & Baking News Corporate Profiles - 2015
Table of Contents
Editorial - With growth elusive, its pursuit only intensifies
Industry Review: Grain-based Foods
Industry Review: Packaged Foods
Can K-Cups kick-start soup?
Industry Review: Beverages
Industry Review: Meat and Poultry
Industry Review: Dairy
Industry Review: Confectionery
Industry Review: Food Service
Industry Review: Clean Label
Company Overview - Grupo Bimbo S.A.B. de C.V.
Company Overview - Campbell Soup Co.
Company Overview - Coca-Cola Co.
Company Overview - ConAgra Foods, Inc.
Company Overview - Flowers Foods, Inc.
Company Overview - General Mills, Inc.
Company Overview - The Hain Celestial Group, Inc.
Company Overview - The Hershey Co.

Milling & Baking News Corporate Profiles - 2015