It would seem that sales of foodservice equipment and supplies continue to gradually settle back into the industry’s normal, pre-pandemic growth levels, per the latest data from the Manufacturers’ Agents Association for the Foodservice Industry (MAFSI.)

Sales of foodservice equipment and supplies increased 6.6% during the first quarter of 2023, per the MAFSI Business Barometer. This represents a 2.1% decline from the fourth quarter of 2022. Adding some context to this data, MAFSI points out “that over the long haul, our industry has grown traditionally in the range of 3% to 5% annually. In actuality, we are normalizing.

Along those lines, reps project sales of foodservice equipment and supplies will increase 4.5% during the second quarter of 2023.

Looking at sales growth by product area, tabletop increased 6.7%, equipment 6.6%, supply items 6.1% and furniture 5.5%. Geographically, first quarter sales growth by region included 8.8% in the South, 7.0% in the Northeast, 6.7% in the Midwest, 5.9% in the West and 4.2% in Canada.

In terms of how active the overall foodservice marketplace remains, 41% of reps reported an increase in quoting activity from the fourth quarter of 2022 to the first quarter of 2023. In addition, 37% of reps report no change in this metric compared to 22% that report a decline. Looking at consultant activity, which also can serve as a harbinger of things to come, 28% of reps report an increase while 63% report no change. Only 9% report less activity among foodservice consultants.

“Overall, business is looking likely to be stable in the second quarter, but concerns are rising for the second half of 2023 and beyond,” MAFSI in the executive summary written by Michael R. Posternak, CEO, PBAC & Associates LTD. Eastchester, NY. “The impact of higher interest rates may be taking a toll on demand for foodservice products. Manufacturers are reporting sharp declines in lead times and corresponding incoming order rates. This is due to four main functions: many dealers are overstocked, the lessened need to advance order to ensure “on time” delivery, the expectation of stability/decline in pricing after high inflation, and the lessening of demand for higher priced products given the need for a ‘return on investment” at the end-user level.”

Source: FESMag.com