Consumer Foodservice United States Report
EXECUTIVE SUMMARY
The United States of America (U.S.) has the largest economy in the world with a gross domestic product (GDP) of $14.26 trillion (2008 estimate), and a per capita GDP of $48,000 (CIA). It offers strong export opportunities for Canadian food companies. Canadian agri-food exports to the U.S. totalled more than $20.3 billion in 2008, and represented 51.5% of Canada's total agricultural exports (Global Trade Atlas).
Canada has long been the number one supplier of live animals, meat, grain mill products, bakery goods and fats and oils to the U.S. Canadian agri-food exporters have distinct advantages over international competitors in the U.S., including convenient shipping, a high degree of Canada-U.S. business integration, a similarity between Canada-U.S. consumer tastes and expectations, and duty-free tariff treatment for most agri-food products under the North American Free Trade Agreement (NAFTA).
Sales by commercial foodservice providers were estimated to be US$510 billion in 2008, driven mainly by the expansion of the fast casual dining sub-sector, coffee specialists and premiumisation in the fast food sub-sector, with non-commercial and military restaurant services accounting for US$48 billion (AAFC). The National Restaurant Association forecasts that annual restaurant sales in the U.S. will reach US$566 billion in 2009.
Commercial foodservice providers account for nearly 91% of away-from-home expenditures in the U.S. Factors driving growth in the foodservice industry include the narrowing gap between the price of eating out and at home, and the rising number of dual-earner households. Additional influences that foodservice operators are responding to are consumer attitudes on health and wellness, consumer demand for personalization and service, away-from-home dining trends, and at-home meal solutions. Unfavourable conditions hindering growth include economic uncertainty, rising fuel costs, and food safety concerns.
A variety of niche markets have been rapidly developing in the foodservice sector, such as quick casuals, upscale ethnic kitchens, and organic eateries, offering Canadian exporters diverse opportunities in this sector. The commercial foodservice sector is expanding menu choices to satisfy consumer preferences. For example, fast food outlets are redesigning their menus to offer selections similar to those available at quick casual restaurants, and restaurants and food retailers are competing to meet the needs of quick casual diners with home meal replacement products.
