Foodservice market analyst, Horizons, has forecast a period of uncertainty for the industry following last week’s EU referendum result.
“The foodservice sector will be less buoyant than it would have otherwise been – but the effects will be felt differently in different sectors,” the company stated.
“Profits – and therefore investment – are under threat.”
Horizons went on to state: “The implications are unknown but in the short term, there will be volatility in the markets – and there will possibly be a change in consumer sentiment.
“In the medium term, volatility will continue.
“And the longer term implications are unknown (at least right now) but will include uncertainty amongst operators, the supply chain and consumers.”
The firm believes that over the next few weeks the pound will lose further value and there will be a change in consumer sentiment which will translate into reduced sales and increased costs.
Changes in end user fortunes could impact back up the equipment supply chain if operators choose not to invest in further new kitchens or refurbishments.
According to Horizons, on the supply side there will be: “Reduced investment as decisions are postponed.
“This will primarily be in restaurants and QSR – but it will also be felt in the supply chain.”
However, over the longer term, the analyst predicted: “Insofar as the economy will change, the foodservice sector will be affected to a greater or lesser extent
“The industry will learn to live with higher costs – as result of the falling pound.
“Demand will probably be lower than it would have been in the referendum vote had gone the other way – but the industry is resilient and will recover (if more slowly).”