THE country’s food-service sales this year is projected to expand by 12 percent year-on-year to a 3-year high of $9.36 billion that, an international agency added, is driven by the reopening of full-service restaurants following the easing of restrictions against Covid-19.
However, the United States Department of Agriculture-Foreign Agricultural Service (USDA-FAS) in Manila said the Philippines’s food service sales this year would remain “far below” than pre-pandemic levels. The country’s food-service sales last year reached $8.373 billion, recovering from $7.973 billion in 2020.
The country’s food service sales reached a record-high of $14.582 in 2019, a year before the Covid-19 pandemic hit the global economy.
“FAS Manila projects consumer food service sales to increase 12 percent in 2022, with full-service restaurants outperforming and cafes and bars underperforming the sector as a whole,” the USDA-FAS Manila said in a Global Agricultural Information Network (Gain) report.
“After gaining a foothold and beginning to build back in 2021, the food service industry will remain far below pre-pandemic levels in 2022,” the USDA-FAS Manila added.
The USDA-FAS Manila pointed out that the easing of government restrictions related to the Covid-19 pandemic encouraged more people to dine-in and hold events this year. With the returning foot traffic, the USDA-FAS Manila explained that restaurant chains pursued “expansions.”
The international agency also noted that hotels are experiencing again “more event bookings as local and international tourism pick up.”
“Meanwhile, some consumers still prefer the convenience and safety of online deliveries, drive-throughs and curbside pickups. Higher inflation and logistical costs have increased operational costs while the difficulty hiring employees remains,” it said.
The USDA-FAS Manila said the limited-service restaurants account for more than half of the Philippines’s food service sales last year at $4.704 billion followed by full-service restaurants at $1.435 billion. The USDA-FAS Manila added that street stalls or kiosks accounted for 14 percent of total sales ($1.173 billion) while cafes and bars contributed 13 percent at $1.062 billion.
The USDA-FAS Manila projected that full-service restaurant sales would rise by 16 percent—the highest growth rate among all segments of the industry—to a 3-year high of $1.66 billion from last year’s $1.435 billion.
“Post forecasts full-service restaurants to hit a 16 percent growth, coming from a low base. After two years in the pandemic, consumers are becoming more confident to dine in restaurants,” it said.
The international agency projected that sales of limited-service restaurants would grow by 12 percent on an annual basis to $5.264 billion while sales of street stalls and kiosks would increase by the same rate to $1.314 billion.
“Post estimates that limited-service restaurants pose a smaller growth compared to full-service restaurants,” the USDA-FAS Manila said.
“Post forecasts street stalls and kiosks sales growth at 12 percent in 2022. Street stalls and kiosks benefited from improved foot traffic in shopping malls and public transportation hubs.,” the USDA-FAS Manila added.