Food service sector predicted to expand 20% this year
The country’s food service sector is projected to grow by 20 percent to $13 billion this year from about $11 billion a year prior, banking on the recovery of the tourism and hotel industry, the US Department of Agriculture (USDA) said.
In a report, the USDA’s Foreign Agricultural Service (FAS) said it is expecting the industry to recover to prepandemic levels by early next year.
“Dining in restaurants, catering and events will continue to boost sales while food deliveries offer convenience,” the USDA-FAS said.
“Although limited-service restaurants still form a majority of food service, street kiosks outperformed limited-service restaurants, full-service restaurants, cafés and bars in sales growth,” it said.
The USDA-FAS said dine-in customers are queueing in some restaurants, especially on weekends while event bookings are beginning to fill up hotel venues.
Certain restaurant chains fast-track the opening of stores to meet local and international franchise agreements while the majority of food establishments are launching new restaurant concepts, according to the USDA-FAS.
Customers are anticipated to continue using online delivery platforms, drive-throughs and curbside pickups but not as frequently as during the pandemic.
Higher food sales
After outperforming all categories last year, the foreign agency is projecting street stalls and kiosk sales to reach 25 percent growth in 2023.
Sales of full-service restaurants are forecast to experience “more robust growth,” overtaking limited-service restaurant sales, which are estimated to grow slower this year after key players surpassed prepandemic sales in 2022.
Although café and bar sales registered a 26-percent increase in the previous year, the USDA-FAS is foreseeing its sales to expand though far from the prepandemic level.
Limited-service restaurants dominate the sector with a market share of 55 percent, followed by full-service restaurants with 17 percent, the report said, adding street stalls/kiosks, and cafés and bars account for 15 percent and 13 percent, respectively.
“As the seventh-largest market for US consumer-oriented exports, the Philippine food service sector provides strong opportunities for meat products, dairy products, fruits, vegetables, bakery products, chocolate and sugar confectionery, sauces, condiments, seasonings, nonalcoholic beverages, and wines,” the report said. INQ
