Tag Archives: market landscape

CHD Expert Assesses the 2014 US Healthcare Foodservice Industry Market Landscape

3 Feb

Due to Obamacare the healthcare industry in 2014 is changing dramatically, and CHD Expert evaluates the status of the foodservice industry within our nations hospitals and healthcare facilities.

Many of the Obamacare reforms officially kicked in on January 1, 2014, which means changes for the healthcare industry.

For companies trying to capitalize on the increased spending by hospitals looking to upgrade their foodservice facilities and services, CHD Expert provides an overview of the current foodservice healthcare market landscape, highlighting opportunities for businesses that cater to the healthcare industry.

A growing number of hospitals across the United States have begun to invest more in their foodservice operations in order to create a friendly, hotel-like experience, complete with room service, cafeterias, gardens, and local produce. Foodservice helps the overall feel of a hospital, and with Obamacare in action, more health care facilities will look to improve their overall experience as it could assist in receiving funds.

According to CHD Expert’s data, there are over 54,000 healthcare facilities in the United States. This includes hospitals, rehabilitation centers, nursing homes, assisted or senior living centers, and other healthcare establishments. In addition to examining market size, CHD Expert’s data provides details around facility locations, and determines that healthcare facilities fall primarily within major cities and larger metropolitan areas.

CHD Experts data breaks down public and privately owned facilities and indicates that public institutions dominate the current healthcare industry. Approximately 86 percent of healthcare facilities are publicly operated. Comparatively, about 13 percent of the market is categorized as private institutions.

Of over 3,700 US hospitals, only 38 percent have self-operated foodservice operations. The majority of hospitals are managed by Foodservice Management Companies, the “big three” consisting of Sodexo, Aramark and Compass. Sodexo holds a majority of the market share with 27 percent of the Hospital market and 44 percent of the total managed hospitals.

Over 75 percent of hospitals also participate with a GPO (Group Purchasing Organization) to receive product discounts on food purchases. The GPOs with the highest market share of hospital participation are Premier, VHA and HPG. Of all of these participating hospitals, 46 percent have 100-500 beds. On the opposite side, over 30 percent have only 1-50 beds representing the smaller hospital market.

CHD Expert also reports that approximately 44.1 percent of all healthcare providers have between 100 to 500 beds. In terms of hospital size based on the number of beds, New York, California, and Pennsylvania all have at least one healthcare facility with more than 1,000 beds. The data also reveals that 40.3 percent of the healthcare facilities serve between 51 to 100 meals on a daily basis. On a larger scale, the total number of patients going through all US hospitals on an average day totals over 643,000.

Other filters CHD Expert have available to dissect the data include: Number of Meals Served Per Day and Number of Employees. There are also contacts available for each Hospital to include titles of, Purchasing, Foodservice Director and Chefs where available.

“Obamacare is influencing how a lot of businesses are structured, and this is certainly the case in the healthcare industry,” stated Catherine Kearns, General Manager for CHD Expert North America. “The US has some of the world’s most modern hospitals but since many Americans struggle with obesity, hospitals are reevaluating how they feed hundreds of thousands of people on a daily basis. This is highly coveted information for foodservice providers who cater their products or services to hospitals and other healthcare facilities. By understanding the numbers behind hospitals and healthcare facilities, providers can better focus their sales efforts and position themselves to acquire purchase orders from these healthcare facilities. Changes in healthcare are happening, and if your organization does business with healthcare facilities, this information could be critical to helping you land new accounts.”

To obtain more information about CHD Expert’s findings, or with general questions about education foodservice data, please contact Catherine Kearns – cathy(at)chd-expert(dot)com

About CHD North America

CHD Expert is the global 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 supporting 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 5 million operators worldwide. For additional information, please visit http://www.chd-expert.com or call 1-888-CHD-0154.

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CHD Expert Releases New Product, Restaurant Chain Locator, Enabling Key Decision Makers To Visualize The Foodservice Market Landscape At The Click Of A Button

21 Nov

CHD Expert, debuts their newest foodservice marketing intelligence tool, Restaurant Chain Locator, helping food service businesses find, track, and footprint chain restaurants across the United States.

Chicago-based foodservice database, marketing, and analytics firm, CHD Expert unveils its latest innovation in foodservice data, The Restaurant Chain Locator. The new Restaurant Chain Locator tool is part of CHD Expert’s interactive online database platform that provides restaurant chains and foodservice providers with new ways to evaluate the foodservice market landscape. This tool identifies the chain operator landscape and density, and can postulate the data onto specific geographic maps, provide aggregated counts, graphs and other business intelligence around the chain and independent operators. The Restaurant Chain Locator has the ability to overlay current U.S. Census bureau information to further evaluate decisions in comparison with other geo-specific key indicators.

According to the latest figures from CHD Expert’s foodservice database, there are over 227,000 total chain restaurants located in the United States. These 227,000 chain restaurants consist of more than 1,900 unique restaurant brands. Subway leads the way with over 25,000 locations across the United States. McDonalds, Starbucks, Pizza Hut and Burger King round out the top 5 most prevalent U.S. restaurant chains. Chain restaurants are defined as restaurants with more than nine units in operation throughout the US. See Figure 1 for the chain restaurant density heat map by zip code.

Data indicates that chains are more heavily located in major cities, with some zip codes containing more than 55+ different chain restaurants. On the contrary, there are zip codes that contain two chain restaurants or less. Some restaurant chains and foodservice providers might see low density areas as a growth opportunity, while others may want to focus on the more heavily populated zip codes. This depends on the businesses’ strategy.

Executives who are looking to expand or consolidate their restaurants’ locations can use Restaurant Chain Locator to evaluate the market landscape and make strategic decisions. This tool allows restaurant chains to visualize their locations and the footprint of operators around each of their units for competitive intelligence as well as new location placement strategy.

Restaurant Chain Locator features include the ability to: locate competitor establishments, visualize density of independents and chains locations within a given market or segment, view census demographics, and map out the results of their selection. With all the intelligence available in the database, a restaurant chain can now view footprints by segment, menu type, annual sales, #employees and average check, giving them more intelligence around their competitors in any given market.

“The restaurant industry is one of the most dynamic and volatile industries to be involved in,” stated Catherine Kearns General Manager of CHD Expert North America. “Restaurants open and close on a regular basis and when considering expansion it is vital to understand the current market landscape and evaluate from a macro perspective. The insight provided by this tool is a game changer for foodservice professionals who are looking to better understand their competitive landscape.”

To get a free demonstration of Restaurant Chain Locator please contact bbloom(at)chd-expert(dot)com.

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 our clients in their sales and marketing strategies by providing the most comprehensive and accurate foodservice census housing market information for more than 4 million operators worldwide. For more information or learn about all of our products available, please visit CHD-Expert.com.

CHD Expert Releases The Latest Restaurant Data, Focusing On Independent Restaurants in a Market Landscape Overview

5 Nov

CHD Expert’s Latest Restaurant Data Indicates That In The Current US Market Landscape, Independent Restaurants Out Number Chain Restaurants Two To One.

Leading foodservice data and analytics company CHD Expert, releases the latest figures around the current United States restaurant landscape and evaluates how independent restaurants stack up against the more widely recognized chain brands. All data in this report is pulled from CHD Expert’s Restaurant Database as of October 2013. Currently in the United States there are 678,691 total restaurants in operation, equating to approximately 1 restaurant for every 467 American citizens*.

While some of the most recognizable global brands are famous American chain restaurants, in the United States the total number of independent restaurants outnumbers chains almost exactly two to one. Currently there are 454,695 total independent restaurants in operation in the United States, whereas there are 224,266 chain restaurants in operation.

However in terms of annual sales, independent restaurants generally gross less than chain restaurants. 67.3 percent of independent restaurants gross less than $500,000 a year, whereas only 24.8 percent of chain restaurants aggregate less than $500,000 annually. Considering the highest grossing restaurant segment, only 1,023 independent restaurants achieve more than $5,000,000 dollars annually, whereas 1,234 chain restaurants fall into this category.

Breaking down the states and District of Colombia by their mix of independent restaurants compared to chains, the four states** with the highest percentage of independent restaurants all reside on the North East Coast. New York leads the nation with the highest percentage of independent restaurants with 82.1 percent of the state’s restaurants being independent. This is not surprising, as the five boroughs of New York City, particularly Manhattan, are largely comprised of unique restaurants. After New York is New Jersey with 78.5 percent independent restaurants, followed by Washington DC at 77.6 percent, and then Maine at 76.4 percent.

Considering states with the most independent restaurants by volume, California leads the states with 12.9% of the US Total comprising of over 58,540 total independent restaurants, bringing in almost $30 billion in sales annually to the California economy. New York is second on the list with 40,928 total independent restaurants, followed by Texas with 33,171 then Florida with 29,449. Rounding out the top ten states by independent restaurants are PA, NJ, IL, OH, NC and MA. See figure 1.

chains-vs-independents-top-10-states

The footprint of independent restaurants in QSR (Quick Service Restaurants) and FSR (Full Service Restaurants) is significant. Independent restaurants make up over 90% of the FSR market, whereas in QSR it drops to 43%.

fsr-lsr-independents-2013

A majority of independent restaurants fall into the full service category. They represent almost 69% of all unique independent restaurants throughout the nation, with retail sales of over $189 billion annually, whereas limited service restaurants sales achieve $$52 billion per year.

“For foodservice professionals who sell their products to restaurants, it is critical to understand the market landscape in your territory”, stated Brad T. Bloom, Director of Sales for CHD Expert North America. “It is a misconception that foodservice manufacturers and distributors need to engage with the large chains to land big sales. Often times the low hanging fruit can be the local independents, who’s decision makers can be much easier to get a hold of and sell to. It is more difficult than ever for sales professionals to engage restaurant owners or decision makers, but with relevant restaurant data, sales professionals can spend more time developing strategies that increase sales and less time researching.”

To obtain more information about CHD Experts findings, or with general questions about foodservice data, please contact Nicolas Watson – nwatson@chd-expert.com

* Based on US Census population clock estimates October 20, 2013
** Washington DC is considered a state for this exercise

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