White Paper
Turning The Tables - A Menu For Success In A Tough Economy
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•White Paper: Turning The Tables - A Menu For Success In A Tough Economy
By Todd L. Hooper, Principal
While many restaurant chains and foodservice distributors were braced for a continued slow-down in consumer spending, few fully anticipated the structural shift in consumer spending habits due to the unprecedented economic events of recent months. Credit-based consumption is out, and savings, debt reduction and value shopping are in. Consumers are de-leveraging and changing where and how they buy.
Between 1997 and 2007, the total consumer dollars available for spending from personal income, consumer credit and home equity increased an average of $372B each year. In 2008, total consumer dollars won't increase. They will actually drop an estimated $36B, and the downward trend is expected to continue into 2009. Based on this drop and recent inflationary pressure on non-discretionary items, Kurt Salmon Associates projects a decrease in discretionary spending of 3% to 6% in the next year. Further, as economic events continue to unfold, these projections may prove to be optimistic. This change in consumer behavior poses significant challenges for the foodservice industry.
Click Here To Download:•White Paper: Turning The Tables - A Menu For Success In A Tough Economy
