Noncommercial Foodservice Showing Signs Of Growth, Says Technomic

CHICAGO — Even though most of the focus in the foodservice industry is on major restaurant chains, the noncommercial sector is also a thriving realm for foodservice. Noncommercial operations accounted for 34 percent of total U.S. foodservice sales in 2012, garnering over $200 billion in sales (retail sales equivalent).

In 2013, Technomic expects the strongest (nominal) growth in the healthcare (4.5 percent) and business & industry (4.0 percent) subsegments. As a whole, noncommercial foodservice operations are forecast to grow 3.7 percent, representing many and varied opportunities for suppliers to the industry.

"Noncommercial foodservice players are looking to other segments like fast-casual to adopt best practices," says Darren Tristano , Executive Vice President of Technomic, Inc. "More consumers want food that is high-quality, fresh, and flavorful.  Whether they are traveling, attending school or work or just concerned about their children's school lunches, they've come to expect better options and operators need to deliver it."

Technomic defines the noncommercial segment as including colleges & universities, K-12 school districts, healthcare, retail meal solutions, convenience stores, travel centers, lodging/hotels, recreation, travel, business & industry, military, corrections, daycare, group purchasing organizations, and foodservice management firms.

To help foodservice executives understand the various untapped segments within noncommercial foodservice, Technomic's Top 1000 Noncommercial online resource and companion report provides exclusive rankings and profiles of the leading noncommercial segments. Interesting findings include:

  • Just over 50 percent of the Top 100 Colleges and Universities are operated by foodservice management companies.
  • The Top 100 Healthcare facilities (including hospitals, long-term care and senior living) include roughly 85,000 beds, with foodservice purchases estimated at $350 million in 2012.
  • Out of the Top 60 Hotel brands profiled, 42 percent are upscale, 30 percent are midscale, 20 percent are luxury and 8 percent are economy.
  • The ten largest foodservice management companies saw estimated sales of $7.5 billion in the Business & Industry segment in 2012.
  • The Recreation segment covers casinos, cruise lines, movie theaters, bowling centers, museums & zoos, race tracks, ski resorts, sports club management companies, stadiums & arenas and theme & amusement parks.

Technomic's Top 1000 Noncommercial online resource provides a continuous comprehensive industry overview, rankings of leaders in each noncommercial segment, with an introduction and methodology used for each noncommercial segment.  A printed report is also available covering the current findings with profiles of each operator.

To learn more about this report, please visit Technomic.com or contact one of the individuals listed below. For Technomic updates, please follow us on Twitter,  LinkedIn or our blog.

About Technomic

Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry.

Source: Technomic