Chicago, January 23, 2008, Business Wire – Citing a larger-than-expected slowdown in discretionary consumer spending, foodservice consultancy Technomic revised its 2008 U.S. foodservice industry nominal growth forecast downward from 5.1% to 3.6%. Among the two largest segments of the industry, restaurants and bars are still expected to perform slightly better than other “beyond restaurants” segments, at 3.8% and 3.1%, respectively.

In comments delivered to clients at its Foodservice Planning Program meeting, Technomic indicated that while the industry has enjoyed sustained growth up until now, weaker performance is expected in 2008. Factoring in a 4% rate of inflation, real spending will likely be down this year. “Because the restaurant industry often serves as a leading economic indicator, our opinion is that the U.S. has most likely entered a recession, or is headed for one,” added Ron Paul, president of Technomic.

Additional details on Technomic’s current forecast for all major U.S. foodservice segments can be viewed at their web site, www.technomic.com/facts/forecast.html, or by contacting Technomic at 312-876-0004.

Technomic Inc. provides food and foodservice clients with the research, insights and strategic consulting support they need to enhance their business strategies, decisions and results.

Source: Technomic, Inc.
Press Contact: Chris Urban, 312-506-3929 or curban@technomic.com