Weekly Roundup – Week of 8.5.24
August 9, 2024
Explore this week’s top food and beverage-related news – all curated by our team of strategists and food enthusiasts:
IFMA’s 2024/2025 Food Away-From-Home Projections Show Modest Growth
According to IFMA, the International Foodservice Manufacturers Association, the overall FAFH industry is expected to grow by 0.9% in 2024, despite challenges like slowing consumer traffic and cautious spending, especially among lower-income consumers. On-site segments, such as colleges, universities, and healthcare foodservice, are predicted to outpace restaurant growth, with the total restaurant category expected to grow by just 0.5%. Inflation projections for 2024 have been revised down to 3.8%, reflecting a slowdown in costs for FAFH operators. Looking ahead to 2025, IFMA anticipates slightly higher growth of 1.0%, with potential boosts from declining energy prices and lower interest rates. Read Full Article
Food Retailers Face 7 Industry Challenges
In 2024, grocers are experiencing economic challenges as the profitability they enjoyed during the COVID-19 pandemic diminishes, forcing a focus on value. Consumers remain concerned about grocery prices, leading them to shop at multiple retailers to find the best deals. In-store shopping has rebounded post-pandemic, highlighting the importance of in-store experiences. The definition of “grocery shopping” is evolving as convenience stores, mass discounters, and big-box chains like Walmart and Target expand their grocery offerings. Grocers must now navigate significant changes in consumer behavior and industry dynamics. Learn More
Walmart Expands Its Fast-Casual Dining Options
Walmart is growing its in-store dining options by partnering with Crave Hot Dogs & BBQ to introduce fast-casual Crave Express locations in select stores nationwide. These small-format restaurants will offer signature dishes like hot dogs and BBQ sandwiches, available both in-store and through delivery services like Grubhub and DoorDash. This move is part of Walmart’s broader strategy to enhance its foodservice offerings, attracting more customers by teaming up with various restaurant chains to provide a diverse dining experience within its stores. Read More
Investors Remain Optimistic Despite Declines In Packaged Foods
The packaged food industry is facing significant challenges, as seen in recent quarterly earnings reports from major companies like Kraft Heinz, Hershey, and Nestle, which showed notable declines in organic sales and volumes. Despite these struggles, investors remain surprisingly optimistic, with food stocks outperforming the broader market amid volatility. This resilience is attributed to lower-than-expected earnings declines and a shift toward defensive investments as concerns grow over other sectors, such as tech. However, questions remain about the sector’s ability to sustain this momentum, especially if economic conditions worsen. Read Story
C-Stores Innovate Foodservice Offerings
The convenience store industry is capitalizing on its longstanding value advantage over restaurants by innovating its foodservice offerings. Major chains like Wawa and Sheetz have set the standard with robust food programs, and now smaller operators are stepping up with new menus and in-store dining concepts. This trend reflects a broader push within the industry to enhance customer experiences through tech upgrades, advanced beverage programs, and even kitchen robots, as highlighted in C-Store Dive’s in-depth Trendline report on the evolving landscape of C-Store foodservice. Download Report
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