Food service sales seen to reach $14 billion
MANILA, Philippines — Food service sales in the country would expand at a double-digit pace next year, surpassing pre-pandemic level to over $14 billion, driven by industry expansion as more Filipinos are expected to dine out amid a better inflation climate.
The US Department of Agriculture-Foreign Agricultural Service in Manila (USDA-FAS) projected that food service sales nationwide in 2025 would rise by 11 percent to $14.58 billion from $13.13 billion this year.
The latest forecast is even higher than the $14.15 billion recorded sales by the food service industry in 2019, before the COVID-19 pandemic hit.
“FAS Manila sees food service sales increasing in hotels, restaurants, and institutions in 2025,” the international agency said in a report.
“As food service chains open more outlets and generate higher sales, the food service industry flourishes amidst back-to-normal consumer spending and lower inflation,” it added.
The continuous increase in event bookings and influx of tourists in the country would also contribute to the expansion in food service sales next year, USDA-FAS Manila said.
“Restaurant chains expand to new locations in rural areas, while many hotels and restaurants feature imported and premium ingredients,” it said.
“Key stores open new branches, franchise international restaurants, and offer promotions to generate higher sales,” it added.
The international agency noted that more than half of food service sales or about 56 percent comes from limited-service restaurants.
Full-service restaurants account for 17 percent, street stalls and kiosks contribute 14 percent and cafes and bars hold a 13 percent share in the overall food service sales nationwide, according to USDA-FAS Manila.
Sales of limited-service restaurants, which include fastfood chains, are expected to expand by 12 percent next year to $8.25 billion from $7.37 billion.
Likewise, full-service restaurants are expected to sustain a double-digit rate of expansion next year as new stores open especially in the rural areas.
USDA-FAS Manila projected that full-service restaurant sales would increase by 10 percent year-on-year to $2.39 billion from $2.18 billion.
Full-service restaurants include the likes of Shakey’s, Max’s, Kenny Rogers, Pizza Hut and Pancake House.
Cafes and bars would post a 15-percent growth next year with sales reaching $1.99 billion as new stores open nationwide, according to USDA-FAS Manila.
Furthermore, sales of street stalls and kiosks would grow by 12 percent next year to $1.94 billion from $1.85 billion as Filipinos continue to seek convenience for food items amid increased traffic.
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