Agriculture Reference
In-Depth Information
Table 1.4
Concentration ratios for top four, eight, and twenty fi rms' share of
U.S. grocery store sales, 1992-2009
Year
Top 4 Firms %
Top 8 Firms %
Top 20 Firms %
1992
17
26
39
1997
19
31
46
2002
30
44
56
2003
33
47
59
2004
34
47
59
2005
36
49
62
2006
35
48
60
2007
38
50
64
2008
38
51
65
2009
37
50
64
Source: Kaufman and Kumcu 2010.
argue that fewer and larger retail food outlets will mean a more general selection offered
by retailers, others insist that larger retailers can offer a broader assortment of more
competitively priced products to customers. The industry is mature, and performance will be
driven by disposable income, consumer tastes and preferences, and female participation
in the workforce.
Food service
The food services sector comprises the largest share of the 2008 food dollar, at 33.7 percent
(
Figure 1.3)
. The food service industry, which employs 9.2 million people, consists of three
major types of fi rms—traditional restaurants, fast food/quick service restaurants, and insti-
tutional food service fi rms. The nation's 528,000 restaurants hit $533 billion in sales in
2009, up from $248 billion in 1990 (
Figure 1.8
)
.
The food service industry saw steady growth, especially since 1990 as busy people, dual
career families, and a more affl uent, mobile society chose the luxury, or some would say the
necessity, of eating more meals away from home. In 1960, only 26 percent of the food dollar
was spent on food away from home (
Figure 1.9
)
. Since 2000, the proportion of the food
dollar spent eating out and at home has been almost equal. The USDA predicts that by 2020,
52 percent of the food dollar will be spent on food away from home.
TRADITIONAL RESTAURANTS
Traditional restaurants, also called full-service restaurants, saw sales of roughly $213 billion
in 2009 (Clauson and Leibtag 2011). Despite a slowdown in the general economy, affl uent
baby boomers are the most frequent customers at full-service restaurants. Refl ecting a
cultural change among Americans, eating out at full-service restaurants plays an important
social function for today's customers. Whereas 30 years ago socializing and entertaining
were done at one's home, today's consumer meets family, friends, and co-workers at the
local restaurant for leisure, conversation, and convenience. There is a growing disparity
among restaurant types. Substantial growth is expected for casual dining restaurants with per
person checks in the range of $15-$20. These full-service restaurants may cater to families
