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Food service

Preparation of food outside the home

  • 6 min read
  • 6 chapters

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Through Industry (economics), Business and Institution

Suppliers to food service operators are food service distributors, who provide small wares (kitchen utensils) and foods. Some companies manufacture products in both consumer and food service versions. The consumer version usually comes in individual-sized packages with elaborate label design for retail sale. The food service version is packaged in a much larger industrial size and often lacks the colorful label designs of the consumer version.

Statistics

United States

The food system, including food service and food retailing, supplied $1.24 trillion worth of food in 2010 in the US. $594 billion of this was supplied by food service facilities, defined by the USDA as any place which prepares food for immediate consumption on site, including locations that are not primarily engaged in dispensing meals such as recreational facilities and retail stores. Full-service and fast food restaurants account for 77% of all food service sales, with full-service restaurants accounting for just slightly more than fast food in 2010. The shifts in the market shares between fast food and full-service restaurants to market demand changes the offerings of both foods and services of both types of restaurants.

According to the National Restaurant Association a growing trend among US consumers for the food service industry is global cuisine with 66% of US consumers eating more widely in 2015 than in 2010, 80% of consumers eating 'ethnic' cuisines at least once a month, and 29% trying a new 'ethnic' cuisine within the last year.

The food service distributor market size is, as of 2015, $231 billion in the US; the national broadline market is controlled by US Foods and Sysco which combined have a 60-70% share of the market and were blocked from merging by the FTC for reasons of market power.

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