Archive | August, 2012

How will the 2012 Drought Affect Food Prices Next Year?

23 Aug

Here at CHD Expert, we’ve been tweeting about it in social media, but today we found a great infographic that displays a lot of great information about the 2012 Drought and what affect it is having on the corn crops.  

Since we are in the foodservice industry,  happenings in the farming industry do affect our business from certain aspects. And over the past few months, we’ve been reading several articles about the impact the 2012 drought is going to have on food prices.

According to the CNN Article titled, “Little hope for worsening drought in U.S. Plains,”  this year’s harsh conditions suggest that food prices next year could surge by as much as 4.5%, the USDA reported. Check out the Infographic below created by Circle of Blue to get a better understanding as to why the drought will have such a negative affect on food prices.

by Circle of Blue

This infographic has a timeline of major drought-related events for the U.S. corn industry, as well as the expected weather-related consequences on the 2012 corn crop.

We hope that this has provided you with a bit more information as to why the cost of food is predicted to increase over the next year. On a total side note, this really explains why it costs between $4 to $5 for your favorite cereal too! Corn = Cereal (see the bottom of the infographic.)

CHD Expert reports that traditional restaurants fared better than the competition during the first half of 2012

22 Aug

Based on its tracking of U.S. restaurant openings, closings and changes in ownership, CHD Expert finds plenty of evidence that traditional restaurants offering value-oriented foods fared better than others during the first six months of 2012.

 Among 12 different types of restaurants tracked by CHD Expert full service family-style restaurants, cafes and diners experienced the most net growth with 3 percent more units, followed by delivery and take-away (only) limited-service restaurants (2.5 percent) and fast casual restaurants (2.4 percent).  Therefore, if slow economic times tend to put a damper on risk-taking, then new data on restaurant units confirms that consumers and restaurant operators are staying in the ‘comfort zone.’

“While we’re certainly encouraged to see more restaurant segments growing than declining, it does appear that consumers remain frugal about their spending, looking for safe economical solutions without compromising on quality,” said Cathy Kearns, General Manager at CHD Expert.

Based on the type of menu served, 2012 restaurant openings also reflected the appeal of familiar favorites. The best growth from January to June occurred in the American/Traditional category, with 5 percent more units, followed by Mexican restaurants (up 3.1 percent).

In contrast, the declines were seen in frozen desserts, with units down 1.1 percent. Kearns noted that since the data only reflects the first six months of 2012 it is difficult to determine whether declines in frozen desserts reflect seasonal patterns or consumers’ efforts to eliminate unnecessary spending. While the number of traditional ice cream units declined, frozen yogurt is still performing well, largely due to consumer interest in healthier snack options.

Notable geographic differences were also apparent, with the three highest-growth states all located in the East. West Virginia topped the list with a 3.6 percent net increase in restaurant units, followed by New York (2.6 percent) and Connecticut (2.2 percent). Interestingly, the biggest declines also came from this region with Delaware losing 2.6 percent of its restaurant units in the first six months of 2012.

The new unit data is derived from one of several U.S. and international foodservice databases managed by CHD Expert, which also provides market research, marketing and sales tools and data management services for the foodservice industry.

CHD Expert is the worldwide leader in collecting, managing and analyzing data for the Away-from-Home Global Foodservice Market. For more than 10 years CHD Expert has been dedicated to support Foodservice channel members in providing a global vision and an in-depth understanding of the industry (in Europe, North America and Asia Pacific).

Our objective is to support food service providers in their sales and marketing strategies by providing the most comprehensive and accurate foodservice census, housing operator intelligence for more than 4 million operators worldwide.

For more information please contact Catherine Kearns – Tel: (312) 768 6916 –

What is HORECA?

14 Aug

HORECA is an acronym that refers to a foodservice industry sector that sells food and/or beverages. The word HORECA itself combines the first two letters of the words: HOtel, REstaurant, CAfé, or HOtel, REstaurants, CAtering (depending on who you ask).

The term HORECA originated in Holland and is commonly used among European and Asian businesses. However as the global market continues to become smaller, the term HORECA has entered United States industry jargon.  And here at CHD Expert we are a global company, and our foodservice expertise reaches all 6 major continents (sorry Antarctica).

Here at CHD Expert, we realize that working in the HORECA segment is becoming a need of our industry, and we offer a product called the HORECA Barometer.

This tool allows users to:

  • Measure HORECA operators’ confidence levels
  • Find out operators’ financial well being
  • Identify evolutions of market trends and prospects

If you are interested in finding out more about HORECA, or about the foodservice industry in general, give us a call and we will be happy to provide you with more information. 1-888-243-0154

Full Service Restaurants Vs. Limited Service Restaurants: What’s the difference?

3 Aug

Today we are going to give a little bit of education around full service restaurants and limited service restaurants. The angle we want to take is: What is the difference between full service restaurants and limited service restaurants and how each industry is changing. Let’s begin by first defining both terms:

Full Service Restaurants: Establishments with a relatively broad menu along with table, counter and/or booth service and a wait staff. These establishments offer meals and snacks for immediate consumption primarily on-premise, though they may also offer takeout service.

 Limited Service Restaurants: Establishments whose patrons generally order or select items and pay before eating. Food and drink may be consumed on premises, taken out, or delivered to customers’ locations.

However, one of the interesting pieces of news that came out last week is that these two types of restaurants are slowly blurring.  According to our partners at Technomic, their latest press release reported that ten years ago Limited Service Restaurants (LSRs) made up 47 percent of the total commercial foodservice industry while full-service restaurants (FSRs) made up 53 percent. Now the landscape has reversed; LSRs account for 53 percent and FSRs 47 percent. Within the LSR segment fast-casual restaurants continue to gain market share while fast-food restaurants are working overtime to upscale their menu and concept positioningnot only to keep pace, but to compete directly with fast-casual leaders.

A great example of this is McDonalds. They are an LSR that has created a updated version of McDonald’s that has cosy leather chairs, a contemporary look and feel and delivers a “place to hang out”  vibe. The moment you walk by this storefront, you know that this is a hip, upscale version of McDonalds.

Understanding the landscape is key, especially for foodservice industry professionals who want to market to LSRs and FSRs. That’s why we help our clients visualize the foodservice landscape by providing them with data, operator contact information and more. If you have any questions about our foodservice offering or want to learn more about our products solutions, visit our website:

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