Frozen food can reduce pressure on foodservice industry

The call follows a report which predicts that the industry will experience continued decline and squeezed margins in 2012. The Horizons Foodservice Review of the Year uses past industry data to predict the outlook for the 'out of home' market. The report suggests that whilst the flexibility of the industry means the outlook is not nearly as bleak as that of other sectors, the foodservice market will continue to be hit in 2012 with an overall expectation of negative growth. It also forecasts a continued decline in consumer confidence. However, the report suggests that innovations and cost control teamed with increased discounting can help operators combat this decline, something that Young suggests frozen food can help with. Commenting on this Young said: "With consumers looking to spend less on eating out and the cost sector suffering at the hands of government cuts, the pressure is on for foodservice operators to reign in expenditure to combat what is predicted to be a difficult 2012. "In this tough economic climate there is a compelling business case for using frozen food. Independent research commissioned by BFFF shows that chain restaurants, managed pubs and cost sector operators can save an average of 24% buying in ready-made meals, rather than making a duplicate recipe from scratch. Buying frozen saves money because of competitive and stable food prices, the ability to control portion sizes and wastage, reduced utilities use, and the opportunity to cut labour costs. This will help businesses reduce their overheads, produce more accurate pricing models and protect their profits. "By switching to frozen, margins can be significantly reduced, helping to shore up the bottom line or allowing savings to be passed onto the customer through discounting for example, something that the Horizons report suggests will help shield the eat out market from the brunt of the economic decline."