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Important Foodservice Trends Impacting Costs in 2020


As a foodservice manufacturer, there are many obstacles you have to contend with. The route to market for manufactures to reach consumers at the food establishment, regardless of segment, is already inherently complex. Manufacturers must go through multiple layers of distribution or purchasing organizations. These touch points have to be discussed with your sales team or partners. You’ll also need to be sure that you’re at the top of mind at each decision point. Not to mention, the hassle of managing contracts and reconciling payments.


The foodservice landscape is difficult enough without any additional challenges. But unfortunately, there are many other macroeconomic and emerging trends that food service organizations are confronted with. All of which tend to have a dramatic impact on topline growth and have an effect on cost structure and margins. All of these foodservice trends are creating a margin squeeze impacting a manufacturers ability to earn profit. As a consequence, we see distributors and operators finding way to attack their profits and losses at different levels.


Organizations that have built high competencies in these emerging foodservice trends are positioned to weather the storm and perhaps emerge as leaders.


The current impact on tariffs is creating uncertainties, particularly with commodities. “In 2018, the Trump administration initiated a series of tariff increases against imports from China. The government of China responded with its own tariff increases, which caused U.S. exports to China, most notably agricultural products, to drop significantly.”  – Read More


More consumers prefer to eat their restaurant meals somewhere other than an actual restaurant. “Delivery, takeout, and drive-thru orders accounts for 60% of restaurant occasions. These shifts are pushing restaurants to design with an eye for delivery, with menu redesigns, alternative takeout packaging and separate kitchens dedicated to mobile orders. Others are going even further, eliminating the restaurant altogether.” – Read More


Food safety remains a high priority. Block Chain allows tracking of ownership and tamper resistance. “Blockchain can trace and record transactions to strengthen food management, safety and quality in the food industry.” – Read More


Consumer preferences continue to change rapidly. There’s a greater demand for convenience and more discerning tastes. “Not only are consumers seeking healthier and more affordable options, but they also expect the convenience provided by impressive distribution networks. These evolving expectations are putting pressure on the industry to adapt to an ever-changing consumer.” – Read More


Wellness, diet, and fitness has continued to dominate these trends. “Food trend forecasts show natural energy, probiotics and plant-based foods will be the three sectors fueling the health and wellness trend in 2019.” – Read More


As new regulations come up and we experience driver shortages, we’re now seeing crowdsourcing being utilized to deliver products. “Transportation issues are forcing manufacturers to change distribution and production schedules and as a result, inventory costs also are increasing. In many cases, the same trucks are used to transport ingredients and materials, so the inbound delivery of key supplies is impacted as well.”

7. COVID-19

No one was fully prepared for a deadly virus to sweep the world at an instant, including foodservice manufacturers, distributors, and operators. Across the globe, closures of restaurants and bars due to COVID-19 have created a domino effect among related industries such as food production and food and beverage shipping. Food retailers are among the most impacted by the coronavirus as supply chains are seeing shortages in the midst of panic buying.

Strategy& partnered with Exceedra to discuss how the COVID-19 pandemic has effected the consumer, trading partners, and revenue management. – Watch Webinar

Foodservice expert, Jim Klass, shares his thoughts on how the future of the industry will look after COVID-19 and how businesses can adapt.  – Watch Webinar

With Exceedra Trade Promotion Management, we help bridge the gap between these industry challenges and complexities. By analyzing foodservice trends, we find common issues that organizations are faced with and give them access to insights that can help shape trade investment decisions with customers. Whether at a local level, segment, or channel level.

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