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Technomic Comments on Food Sales

03/27/2020

Market research group, Technomic, forecasts a decline in sales by the food service sector ranging from 11 percent to 27 percent in 2020 compared to the previous year.  Shelter in place mandates have resulted in consumers resorting to eat-at-home, forcing QSRs to rely on takeout and drive- through, and home delivery in the case of casual and family dining establishments.

The trend away from restaurants was intensified during the past week with reports of greater susceptibility among the 18 to 34-year old age group and the concurrent decline in the stock market, which has eroded retirement funds.

 

The food service industry has been impacted by school districts suspending classes although in some areas, programs provide meals to needy recipients funded by USDA.

 

Technomic recommended that suppliers should be transparent with their customers, especially with regard to precautions to prevent transmission of Covid-19.  Predictions by responsible public health authorities suggest that the outbreak will persist for many weeks and accordingly suppliers should make appropriate adjustments based on lower offtake by the food service industry.