ABSTRACT
This chapter describes the away-from-home food industry and its significance for the livestock sector. Food service sales for away-from-home consumption have been claiming a larger share of food dollars, but may be leveling off at 45 cents per food dollar spent. The performance of the food service sector is more difficult to characterize than grocery retailing because of the differences in products and services provided. One of the ways some food service firms are able to maintain high returns is through the use of substantial advertising. Overall, food service and some chains in particular, remains very profitable but declining labor productivity, while wages rise due to security and increased competition from supermarkets and convenience stores, is putting pressure on prices and margins. Increasingly, firms are franchises, which means fewer independent buyers for livestock products. Yet, food service remains a highly important and visible outlet for red meats.
