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Ethics in Action

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Macro Trends Brian Howard BUS620 Robert Tielman June 17, 2012

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In the US, the number of health problems and a general concern for living a healthy lifestyle have resulted in the growth of reduced fat products and nutritional products in the US foodservice industry. The foodservice industry grew at a compound annual growth rate (CAGR) of 2.2 percent from 2006 to 2011 and is expect to grow at a rate of 1.9 percent until 2016. The macro trends, such as employment and Gross Domestic Product growth in the economy, are expected to remain strong on account of lower inflation figures and improving employment figures in the country. As a result of economic uncertainty, US consumers are evaluating their spending and value buying is becoming a major driver in the US foodservice industry. Consumers are not only considering price as a key facet of value, but also considering quality, taste, and convenience as aspects of value buying. In the US, foodservice operators are increasingly interacting with consumers in real-time. Social networking sites and smart-phone apps have created many new opportunities for foodservice operators and marketers to interact with the customer. Foodservice operators in 2011 were forced to improve efficiency, reduce costs, and improve quality. A similar trend is expected to continue with independent restaurants and foodservice operators, as consumers are expected to visit chain operators more often. The foodservice industry is largely segmented by lifestyles as well as demographics. Factors such as income, gender, and age are what determine consumption. In order to be able to successfully market new products within the food industry or even to launch a new restaurant, several factors must be understood such as the tracking changes in consumer demographics as well as lifestyles. With the population growing at such a rapid rate and the increasing diversity that now evolves within the U.S alone, particularly in areas such as California, I feel that in order for marketers within the foodservice

3 industry to remain successful and continue to grow, it will be crucial that such elements as that of ethnicity is closely focused on. With overall population being at an all-time high and the rise of divorce and single parents today, convenience in foods is on the rise. Things such as fast food restaurants, ready to eat meals, and snack foods are amongst the top of the list in terms of popularity and the ability to be able to market such products and services has grown tremendously due to this increase. Out of nearly 1800 professional chefs surveyed, over half of them said that a food truck would be a good investment. From an outsider’s standpoint, I think that over the next 5 years, coming up with various ideas and strategies to further market the sales and use of food trucks will pay off. For many years now, I have seen the tremendous growth of the taco trucks in and around my hometown and for that matter, across the U.S., have gained popularity. We are now seeing different types of foods now in terms of ethnicity offered on trucks across the U.S. Mobile food trucks are the fastest growing trend in the foodservice industry ranging anywhere from $10,000 from a simple hot dog cart to $350,000 for customized full-scale kitchens on wheels according to Jim Sahene, CEO of Buster’s Buster's Real Ice Cream and whom has acquired a 50% share of Custom Concessions-, a manufacturer of mobile kitchen trucks and trailers. Convenience and affordability are two factors I feel make the food trucks of today as successful as they are. Over the next five years to come, I see this trend only growing and becoming more popular and available than they are today. Overall however, food trucks have all the right tools working for them in terms of Macro Trends. Demographic, Sociocultural, Economic, Technological, Regulatory and natural environments are all on the rise in terms of the foodservice industry and more importantly the food truck.

4 REFERENCES
Research and Markets Offers Report: US Foodservice: The Future of Foodservice in the US to 2016. (2012, June). Professional Services Close - Up,. Retrieved June 17, 2012, from ABI/INFORM Trade & Industry. (Document ID: 2689233131). http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/sis8735 http://www.syscond.com/PDF/Food%20Trends%202012.pdf Bruster's Real Ice Cream Joins the Mobile Kitchen Craze: Food Truck Trend Leads to Merging with Custom Concessions. (7 June). PR Newswire, Retrieved June 18, 2012, from ProQuest Newsstand. (Document ID: 2680343381).
Mullins, J. W., Walker, Jr., O. C. (2010). Marketing management: A strategic decision making approach (7th ed.). Boston: McGraw-Hill Irwin. ISBN: 9780073381169.

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