Take a look at some of the trends, challenges, and opportunities from industry profiles updated by D&B First Research editors in recent weeks, with a focus on the Food Services Sector.
Opportunity: Restaurants Partner with Food Delivery Companies — Major US restaurant chains are partnering with popular third-party food-delivery services to expand their reach in the mobile ordering market. Fast-growing upstarts such as Postmates, DoorDash, and GrubHub operate large food-delivery networks in dozens of markets, contracting with local drivers to deliver meals ordered via smartphone from restaurant operators such as Chipotle, Panera Bread, and Taco Bell. The delivery segment is poised for further growth as major players like ride-share provider Uber and online retailer Amazon expand their own meal-delivery services into new markets around the world.
See our Restaurants, Bars & Food Services report for more on this and other industry trends.
Challenge: Catering Services Face Growing Competition — Catering businesses may face growing competition from restaurants that are developing or expanding their drop-off and on-demand food services. The preferences of younger consumers may be driving this trend. Convenience-seeking millennials often desire food from their favorite restaurants rather than from traditional caterers; they also are more likely to use third-party delivery apps, which facilitate the process of transporting food from restaurants to homes or offices. The market for drop-off catering rose 20% over the past three years to reach $52.3 billion, according to Technomic data cited in Foodservice Equipment & Supplies magazine.
Find more information in the Catering Services industry profile.
Opportunity: Coffee Shops Add Beer and Wine — To counter a decline in traffic at its coffee shops after 4 p.m., Starbucks is accelerating efforts to sell wine and craft beers in its US stores. The coffee shop chain sells beer and wine at more than 70 locations. Starbucks has submitted liquor license applications for several hundred more locations across the US in recent months and is optimistic that more than 2,000 of its 12,000 US stores will soon be selling wine, beer, and small plates of food. By adding wine and beer to its Evenings menu, Starbucks expects to boost annual sales by $1 billion by 2019.
For more insight, see our Specialty Eateries industry report.
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Amy Schein is an Industry Specialist at First Research, where she covers various aspects of the media industry. She earned her BS and MA in media studies at the University of Texas at Austin. Follow Amy on Twitter.