Executive Counsellor Guild

FOOD SERVICE OVERVIEW

According to the National Restaurant Association (NRA), the restaurant industry is fast becoming more influential and important in the U.S. economy, as it spans almost 40 industry segments including commercial dining and non-commercial dining like school cafeterias and military restaurant services. According to the NRA, the restaurant industry has nearly $476 billion in sales and 12.2 million employees, making it the largest private sector employer in the United States in 2005.

Restaurant industry sales are predicted to rise almost 5 percent in the year 2005. The NRA states that about half of every food dollar in America is spent on food away from home.

The NRA reports that the driving factor in the industry's growth continues to be unyielding consumer demand and rising consumer incomes.

Three major trends in the industry are: eating out in a healthy manner, growing number of choices for types of meals when dining outside the home, and the diversification of the food service workforce.

Dr. Hayden Stewart, an agricultural economist for USDA's Economic Research Service and co-author of the report "The Demand for Food Away from Home: Full-Service or Fast Food?" notes that as American incomes grow, Americans tend to spend more on goods and services which includes leisure. Food away from home is a form of leisure as it frees households from having to buy, clean, cook, and prepare their own meals.

In addition, Dr. Stewart said that family size plays a considerable role in the decision of American families to eat out. "Larger families have lower cost per person for at home food because the cost of the ingredients per person diminishes when there are more people," said Dr. Stewart. Smaller families, including single parent families, may find it more costly to prepare meals at home considering the higher costs per person.

Dr. Stewart noted that as many Americans become more "convenience oriented" many full-service restaurants are starting to look for ways meet the demands of their customer's timetables. He also noted that many fast food restaurants are trying to attract more customers by offering more "full-service restaurant qualities" like a wider menu variety and better service.

Online Resources:

National Restaurant Association
www.restaurant.org
The NRA is the leading business association for the restaurant industry. NRA's 60,000 member companies represent 300,000 restaurant establishments. Includes links to state restaurant associations.

Society for Foodservice Management
www.sfm-online.org
The pre-eminent national association serving the needs and interests of executives in the onsite foodservice industry. SFM represents major corporate liaison personnel and independent operators as well as national and regional foodservice contract management companies.

American Culinary Federation
www.acfchefs.org
A professional, not-for-profit organization for chefs and cooks to promote the professional image of American chefs worldwide through education among culinarians at all levels, from apprentices to the most accomplished certified master chefs.

Women's Foodservice Forum
www.womensfoodserviceforum.com
Engages the foodservice industry to develop leadership talent and ensure career advancement for executive women. All segments of the industry are reflected in the membership, including restaurant operations, manufacturing, distribution and publishing.

International Dairy Deli Bakery
www.iddanet.org
The IDDBA is a trade association that brings together food retailers, manufacturers, brokers, distributors, and interested food industry professionals who are united in providing quality dairy, deli, and bakery products to the consumer.

The Food Institute
www.foodinstitute.com
Founded in 1928, The Food Institute is a non-profit information and reporting association. Membership, more than 2,200 companies in 50 states and in over 40 foreign countries, spans the entire food distribution system, from seed companies to grocery chains and all bases between. Members include growers, food processors, importers, exporters, brokers, wholesalers, supermarket chains, independent retailers, food industry suppliers, foodservice distributors, advertising and banking executives, government officials, and others.

American School Foodservice Association
www.asfsa.org
ASFSA has been advancing the availability, quality and acceptance of school nutrition programs as an integral part of education since 1946. The Association strives to see that all children have access to healthful school meals and nutrition education. Recognized as the authority on school nutrition programs, ASFSA has 52 state affiliates, hundreds of local chapters and over 55,000 members.

International Foodservice Distributors Association
www.ifdaonline.org
Represents foodservice distributors throughout the U.S., Canada and internationally. IFDA's 135 members include broadline and specialty foodservice distributors that supply food and related products to restaurants, institutions and other food-away-from-home foodservice operations.

The National Society for Healthcare Foodservice Management
www.hfm.org
The only professional society dedicated exclusively to senior independent non-contract healthcare foodservice management professionals and their suppliers.

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