US foodservice sector needs two years to fully recover
Foodservice sector in the US will need at least two years to fully recover from the coronavirus crisis, according to a Rabobank report. The industry must adapt to new realities such as new social gathering norms and spending patterns, estimates Amit Sharma, senior analyst – consumer foods.
Although the worst of Covid-19’s impact on US foodservice seems to be left behind, with sales declines gradually moderate from down 50% at peak, to down 12% to 14% over the next 12 months, a full recovery will be seen at the end of 2022, according to Rabobank’s report, "US Foodservice in the Post-COVID-19 World."
“We expect this recovery to continue to strengthen and sales to return to pre-COVID-19 levels by mid- to late 2022, as restaurants adapt to new social gathering norms and spending patterns”.
“More importantly, these changes will have a lasting impact on the US foodservice landscape and growth trajectory. Long-term growth will likely be 50 to 100 basis points below the pre-COVID outlook, with a new set of winners and losers based on their relative positioning (winners: limited-service, chains, off-premise; losers: full-service, independent, eat-in), financial strength (greater consolidation, M&A), and operational flexibility (automation, ghost kitchens, digital),” commented Mr Sharma.