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The new year will bring little to no traffic growth for the total U.S. foodservice market. Quick service restaurants (QSRs), however, will increase visits by an estimated 1 percent, faring better than the flat growth achieved in 2016. The modest gain for QSRs will offset the anticipated 2 percent decline for full service restaurants, resulting in no-growth traffic for the industry overall, according to NPD Group’s daily tracking of U.S. consumers’ use restaurants and other foodservice outlets. “Restaurant operators are in a position to alter the current forecast, but will need to differentiate themselves from the competition,” says Bonnie Riggs, NPD Group’s restaurant industry analyst. “In the year ahead, it will be critical for them to stay relevant in consumers’ minds, focusing on innovative products, unique promotions, competitive pricing, stating the benefits of eating at restaurants vs. home, and delivering an enjoyable experience.” Other trends Riggs points out for 2017 include: The Future Is Now: The importance of Millennials and Gen Zs will accelerate the foodservice industry’s need to be more innovative, as these cohorts are always looking for that “experience,” something new and different. Without innovation, operators will fall out of the consideration set and risk being overlooked by a large portion of the U.S. population. Personal Choice Reigns: To stay current and relevant in this overcrowded restaurant marketplace, operators need to serve the foods people crave and be willing to customize according to consumers’ personal choices. In 2017, more restaurant operators will offer digital menu options, which will enable consumers to customize their orders. Home Sweet Home: For several years now, more than 80 percent of meals have been sourced from home; fewer than 20 percent have been sourced from foodservice, and dollars are evenly split between the two. Commodity costs are expected to continue their decline and this may help restaurant operators in terms of offsetting higher prices for labor and medical insurance costs.
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