Last month Federal Reserve Chairman Ben Bernanke made global headlines when he told The Brookings Institution that the recession is "very likely over." If the recession is, in fact, over, what does that mean for the foodservice industry?
In the short term, this ray of economic hope probably does not mean much to the foodservice industry. Foodservice operators' equipment and supplies budgets are expected to decrease by 2.8 percent, on average, in 2010 according to FE&S' annual Forecast Study. In contrast, 39 percent of the operators surveyed anticipate an increase in their food and beverage expenditures, while 45 percent anticipate this budget item will remain flat. Overall, we project that foodservice equipment and supplies sales for 2010 will remain flat when compared to this year.
One of the (many) unfortunate aspects of downward business spirals is that they never call ahead to let anyone know they are coming. Once the tumultuous periods come to an end, nobody announces that the business environment has stabilized. Such is the situation for today’s foodservice industry.
Has the foodservice industry reach the bottom of this economic free fall? If so, there's nowhere to go but up.
“What is your common purpose?” That was a question posed by the Disney Institute’s Scott Milligan during a presentation at Technomic’s 2009 Trends and Directions Conference. While Milligan asked this of the record number of foodservice operators and other industry professionals in attendance, it is really a question that any member of the industry needs to be able to answer to help ensure long-term success.
In light of the much ballyhooed economic challenges the world faces today, many clever marketers have decided to play the panic card when trying to peddle their products and services. And why shouldn’t they? Throughout last year’s political campaigns both parties did an exemplary job of trying to scare us into not voting for the other candidate. As a result of this trend, a new phrase of sorts has taken root in the marketing lexicon of the day.
With the calendar rolling over to a new year, leaders of many companies are reviewing their budgets for 2007 and perhaps revisiting their strategic plans. Successful managers do this to ensure the necessary ingredients are in place for what they hope is the coming year’s recipe for success.