Restaurants seen to regain prepandemic vibrancy next year
The country’s food service sales are projected to grow by 12 percent in 2024 and subsequently surpass prepandemic levels next year on the back of store expansions and increasing customer queues at restaurants.
“As more consumers dine out, restaurant chains open new restaurants, cafes, kiosks and bars, as well as franchise international restaurants in the Philippines,” the United States Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) said in a report.
The foreign agency said it expected the industry, particularly sales at hotels, restaurants and institutions, to flourish this year and the next amid back-to-normal consumer spending and lower inflation as tourism picks up.
“The resumption of daily face-to-face classes and work boosts food service sector sales,” it said.
The USDA-FAS noted that most consumers were opting to dine out, specifically at quick service restaurants because of their affordability and convenience.
It said customer queues at certain restaurants were reaching prepandemic level seating capacity during peak hours.
“Restaurant chains expand to new locations in rural areas, while many hotels and restaurants feature imported and premium ingredients,” the report said.
“With international tourists surpassing government targets, a strengthened tourism industry with more than five million international visitors in 2023 boosts sales as events resume in hotels and event venues,” it added.
The USDA-FAS said it anticipated a “moderate” growth of 5 percent in the food manufacturing sector despite continued expansion as they grapple with higher input costs of raw materials.
It said the increase in production costs have forced some manufacturers to jack up their prices.
The retail food sector is also seen to end the year with a 5-percent increase in sales because of thriftier spending and reduced home cooking.
“Modern retail store expansion in key cities and provinces generates additional retail sales. Stores continue exploring new imported food and beverage products to offer novel options to consumers,” the USDA-FAS said.
