Corporate Profiles - 2023 - 44

GRAIN-BASED FOODS
Foodservice
Operators spice up menus, shake up leadership
in pandemic's wake
estaurant industry sales were expected to reach $997 billion in
2023, up 11% from prior-year estimates, according to the National
Restaurant Association (NRA), Washington. Supporting the
outlook was a return to normalcy as the impact of the pandemic fades,
R
supply chain disruptions ease and labor tightness becomes less acute.
" The restaurant and foodservice industry is fueling the American
economy, " said Michelle Korsmo, president and chief executive officer
of the association. " Our hiring rate and wage increases are outpacing
the overall private sector, and this year our industry will contribute
nearly $1 trillion to the economy. "
The association predicted 500,000 new restaurant jobs would be
added by the end of the year; however, most operators in a survey
expected employment recruitment and retention would remain challenging.
Many predicted a rise in technology and automation to fill
the labor gaps.
At the NRA Show in May, exhibitors presented solutions to the labor
crunch in the form of ordering kiosks, food preparation and cooking,
and even delivery robots.
" Technology is assisting with job satisfaction, " said David Henkes,
senior principal, Technomic Inc., Chicago, at the event. " No one wants
to be the '(french) fry guy.' Technology is taking away mundane positions
through automation. "
A POST-PANDEMIC REBOUND
The restaurant industry continued to recover early in the year from
pandemic-related losses, according to the market researcher Circana,
Chicago. Total restaurant visits rose by 2% in February compared to a
year ago, and quick-service restaurant visits, which represent 82% of
total restaurant industry visits, rose 3%.
The full-service fine dining restaurant category experienced a 13%
decline in visits.
Circana data showed strength in the morning and lunch dayparts.
Morning meal restaurant visits grew by 10% in February compared to
a year ago and were up 2% compared to three years ago.
" We're seeing strong customer traffic at breakfast and morning
snack, which means consumers are looking for convenience and portable
meals and snacks, " said David Portalatin, food industry adviser
for Circana. " On the other hand, dinner and lunch visit growth has been
slower due to home-centric behaviors being stickier at these dayparts.
" At lunch, consumers have other choices, including bringing items
from home or going to a workplace cafeteria, offering subsidized pricing
or no-cost options. Additionally, the higher average check for lunch
44 \ October 2023
McDonald's Corp.
NET INCOME
in millions
2020
2021
2022
$6,177
$7,545
$4,731
Source: McDonald's Corp.
REVENUES
in millions
2020
2021
2022
$28,183
$23,223
$19,208
Source: McDonald's Corp.
Restaurant Brands International, Inc.
NET INCOME
in millions
2020
2021
2022
$1,482
$1,253
$750
Source: Restaurant Brands International, Inc.
REVENUES
in millions
2020
2021
2022
$6,505
$5,739
$4,968
Source: Restaurant Brands International, Inc.
and dinner may make them less appealing to some consumers. "
Wendy's Co., Dublin, Ohio, aimed to capture some of the momentum
during the morning daypart. Executives in May said the fast-food chain
had plans for increased activity to drive the breakfast business in the
United States and Canada by building awareness around core items,
launching menu innovation and promoting targeted offers.
Meanwhile, McDonald's Corp., Chicago, in July said it was discontinuing
its McCafe bakery lineup that included such breakfast pastries
as apple fritters, blueberry muffins and cinnamon rolls. The move was
made a few months after McDonald's expanded a market test with
Krispy Kreme to sell donuts at select restaurants.
New menu items at Pizza Hut, KFC and Taco Bell tap into new consumption
occasions, said executives of parent company Yum! Brands,
Inc., Louisville, Ky.
At Pizza Hut, Melts is a handheld item featuring two slices of thincrust
pizza folded, baked and served with a dipping sauce. The product
is geared toward an individual meal versus the family-sharing occasion
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Corporate Profiles - 2023

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