K-12 Segment Deep Dive
After more than 70 years as a government-subsidized program, school foodservice continues to struggle with its image and its financial stability. As foodservice directors wait for the delayed reauthorization of the Healthy, Hunger-Free Kids Act, they fight to keep their balance sheets in the black while seeing their programs become more complex than ever. Growth has stalled for school foodservice, with revenue actually expected to shrink by 1.2% in FY 2020. Operators search for ways to deal with funding and regulatory challenges, and are ever hopeful that manufacturers can help them meet those challenges.
College & University Segment Deep Dive
Of all the non-restaurant segments of the foodservice industry, the college and university market most mimics the commercial side of the business. As a matter of fact, many existing restaurant concepts—from quick-serve to, in a few cases, fining dining—are represented on college campus. As a result, operators are looking for more product variety from food manufacturer, even as they struggle with labor issues and try to find a balance between using broadline distribution and satisfying customers’ desires for more fresh, local and environmentally sustainable items.
Business & Industry Segment Deep Dive
The Business & Industry foodservice market continues to grow (1.8% projected for FY 2020) but the landscape is changing. This market segment has gone from foodservice being viewed as a “necessary evil,” to one in which food can be a star attraction. Particularly among technology companies, food programs are being used to attract and retain talent. This opens up opportunities for food manufacturers to offer higher-end products and ingredients, and to help sustain the segment’s growth.
Healthcare Segment Deep Dive
A growing and evolving market perfectly describes healthcare foodservice, which is composed of hospitals, long-term care facilities (aka nursing homes) and senior living. With hospitals and senior living, in particular, expected to grow by 2.0% and 2.1%, respectively, food manufacturers have ample opportunity to sell to this market.