While foodservice traffic remained steady over the recent quarter, it is unclear how the market will fare over the coming months.
A new report from The NPD Group has revealed that foodservice has remained steady across the globe over the second quarter of 2016, ending in June 2016.
Britain voted to leave the European Union just as the second quarter of 2016 ended, but at that point, they made enough foodservice visits to be the strongest global market for the quarter, reports The NPD Group, a leading global information company. Britain’s foodservice growth in the quarter ending June was driven by a balanced mix of traffic and average spend per eater increases, according to NPD Group’s CREST, which continually tracks consumer use of foodservice outlets in Australia, Brazil, Canada, China, France, Germany, Great Britain, Italy, Japan, Russia, Spain, the U.S. and now Korea.
In addition to Great Britain, Australia, France, Japan and Spain posted foodservice traffic gains and Germany visits held stable in the second quarter compared to the same quarter in 2015. China posted a rare decline in the quarter and visits were down in Canada, Italy, Russia and the U.S. As it prepared to host the Summer Olympic Games, Brazil couldn’t overcome the country’s economic woes and posted the steepest foodservice traffic decline in all countries tracked by NPD’s CREST foodservice market research.
Visits at the morning meal are growing broadly, but it is still a relatively small day part in terms of traffic share in most global markets and can’t drive overall growth like other meals can. The strongest markets, Australia and Europe, saw growth from all three main day parts of morning meal, lunch and dinner. In Spain the main day parts are morning meal and evening snack, which is dinner time, and both day parts increased traffic. Japan, China and the U.S. all showed growth at each country’s peripheral day parts.
“Last quarter’s exciting, broad growth around the world proved to be ephemeral because this quarter is much weaker,” said Bob O’Brien, senior vice president, global foodservice at The NPD Group. “Things are still growing in most of Europe, but our global analysts are wary of their near-term prospects. Chains are not as broadly strong and main day parts are weak outside of the strongest markets. And, in the U.S., Europe, Russia and Canada, there is great uncertainty about the direction of the overall environment.”