Foodservice Trends for the New Year

The new year is expected to bring good tidings to the foodservice industry, predicts Datassential, with an overall growth rate of 1%. A strong labor market, leveling inflation, and growth in consumer spending all bode well for foodservice in 2025, reports Datassential.

On-site foodservice operations are projected to see the highest growth rate. Fast-casual and QSR are in prime positions for success, too, add the Datassential analysts. There’s been some “blurring” of segments, they add. In competing segments, the winner is not necessarily intuitive. Casual dining sometimes beats out fast casual for price and value; QSRs sometimes beat out C-stores. With perceived value driving consumer decisions, “This segment blurring is likely to mean consumers are more open to a wider range of foodservice outlets for a wider range of their dining needs,” reports Datassential.

For on-site dining operations such as schools, healthcare, and colleges and universities, growth rates will be highest, predicts the International Foodservice Manufacturers Association (IFMA), with 2.8% overall growth.

In school foodservice, IFMA cites challenges such as declining enrollment and labor shortages. On the positive side, though, operators see strong participation rates and local food partnerships bolstering success.

College and university foodservice operators face off-campus living and declines in meal plan participation. They are poised to succeed, however, with menus that appeal to a diverse customer base, reliance on grab-and-go, and adoption of technologies.

The longterm care and senior living arms of healthcare are declining, while hospitals census counts are stable, says IFMA. Operators are leveraging meal kits and take-home meals to raise their overall revenues.

Off-site foodservice will dip

Meanwhile, the takeout and delivery arm of the foodservice business will gradually give way to on-site foodservice experiences, predicts Datassential. The Diner Dispatch survey from US Foods indicates that more than half of consumers are choosing dining in over takeout or delivery, with a significant uptick since 2023.

They note that consumers are spending more on foodservice every month, with women spending the most. In addition, they see consumers gravitating towards fast-casual and casual foodservice.

How to succeed in 2025

To succeed in the new year, foodservice operators can embrace the rising tide. Operators in all segments can play on the success of casual and QSR by offering value-driven options with speedy convenience. Some additional tactics:

• Assess service models and outlets to align with consumer lifestyles.
• Build value and culinary diversity into menus.
• Continue tracking menu trends to engage guests.
• Tap into growing consumer interests in better-for-you menu offerings.
• Ensure a strong on-site customer experience to build loyalty.

Discover more insights for your foodservice segment in the Chicken of the Sea foodservice segment pages. For more strategies to help with new year planning, check out free continuing education courses at tunaversity.com: The New Menu Planning and Inside Consumer Demand. Here’s to a prosperous New Year!