Issue link: https://www.e-digitaleditions.com/i/447632
18 FEDA News & Views I often get asked what I believe are some of the key trends that are, or will be, impacting the global foodservice industry. Well, here are my thoughts. The list below is not meant to be all inclusive in nature, as daily events and occurrences could, and will, have an impact. I have tried to segment them into "Macro" and "Operational" areas, though it should be noted that several of the macro trends could also be viewed as operational in nature, and of course, just the opposite as well. So, here goes. Macro Trends Impacting Our Industry Energy Efficiency Greater emphasis is being placed on energy-efficient prod- ucts. This will only get more important as the global demand for energy increases, especially with the rapid growth of the middle class in a growing number of countries combined with the rising cost of energy. Sustainability Primarily driven by consumers and end user/operators, this driver is starting to impact all constituents within the supply chain and covers everything from resource utilization/con- servation (water & energy); waste management; efficiencies; organic foods; sourcing, etc. If you are not onboard, you need to be, and quickly. Rising Cost of Food The OECD is forecasting that the price of basic food stuffs (grains and rice) will increase by more than 40 percent by 2018 from 2012 levels. This is impacting the entire food sup- ply chain and forcing operators to raise menu prices, seek alternatives and/or "squeeze" the greatest yield that they can from current food purchases. I believe that it will also spur the advancement of different food "alternatives." Rising Labor Costs On a global basis, labor costs are rising for operators in the foodservice industry and importing "cheap" labor is becoming less and less attractive (as growing government regulations are being designed to hire at home). As such, operators are looking to all supply chain constituents to help them deal with their labor issues. Lack of Qualified Labor Tied closely with the above dynamic, it is becoming more and more difficult all of the time to find people to work in this industry—across all market segments and constituent groups—who are "qualified." Other industries are more appeal- ing to today's qualified laborers because the foodservice indus- try is perceived as being a low-tech, low-intellectual industry. Food Safety Issues This continues to grow in importance on a daily basis. More governments are putting additional rules and regulations in place to help control and monitor any food-safety-related issues. As the global food supply chain continues to expand and grow, food-safety-sourcing issues will become an even big- ger issue in the future. Growth of International Chains All major markets of the world, India, China, South America, Indonesia, Russia, etc. (representing approximately 50 percent of the world's population), are developing new chains and chain concepts that, in many cases, are expanding at rates greater than traditional global chains such as McDonalds, YUM, Burger King, etc. What an opportunity this is for all constitu- ents in the supply chain. Growing Global Middle Class As the middle class expands rather rapidly in the BRIC countries, and many other countries as well, the increase in discretionary disposal income is allowing people to eat out more frequently. The net result of this is that more foodservice operations are being established. continued on page 20 By Doug Fryett