Prepared Foods logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Prepared Foods logo
  • TRENDS
    • Prepared Foods The Year Ahead
    • Innovation Month
    • *Sustainability*
  • PRODUCTS
    • Bakery
    • Beverages
    • Breakfast, Cereals & Bars
    • Candy
    • Cannabis
    • Dairy
    • Meals & Sides
    • Meat, Poultry & Seafood
    • Sauces & Marinades
    • Snacks & Appetizers
    • Soups
  • INGREDIENTS
    • Antioxidants & Nutritionals
    • Colorings
    • Dietary Fiber
    • Emulsifiers, Fat & Oils
    • Flavors, Seasonings, Spices
    • Flours, Grains, & Pasta
    • Fruits, Vegetables and Nuts
    • Gums & Starches
    • Phosphates & Acidulants
    • *Proteins*
    • Sweeteners
  • FORMULATION
    • Allergens & Intolerance
    • Authentic & Ethnic
    • Cost Reduction
    • Fat Reduction
    • Gluten Free
    • *Immunity*
    • *Natural / Organic*
    • *Plant Based & Vegetarian*
    • R&D Lab Tech / QA-QC / Food Safety
    • Shelf Stability
    • *Sugar Reduction*
  • BETTER FOR YOU
    • Functional New Products
    • Functional Ingredients
    • Functional Benefits
  • FOOD MASTER
  • MEDIA
    • Podcasts
    • Videos
    • Infographics
    • First Person Q&A
    • Favorite Products Poll
    • Play With Your Food Game
    • Webinars
  • STORE
  • EVENTS
    • Spirit of Innovation Awards
    • Industry Events
  • EMAG
    • eMagazine
    • Archive Issues
    • Advertise
  • SIGN UP!
Breaking NewsFoodservice2025 Food and Beverage Trends

IFMA Forecasts Moderate Growth for Foodservice Despite Economic Uncertainty

The Food Away from Home Association projects a 1.1% inflation-adjusted increase in 2026 supplier purchases, with menu inflation expected to ease and resilience continuing across restaurants, c-stores, cafeterias and emerging formats like ghost kitchens

By Prepared Foods Editorial Staff
IFMA logo
IMAGE COURTESY OF: IFMA The Food Away from Home Association
August 29, 2025

Economic uncertainties may have consumers ordering less often from restaurants and other sources of prepared meals, but the squeezed businesses are far from panicking.

Collectively, they'll increase their purchases of supplies and services by an inflation-adjusted 1.1% in 2026 to meet a moderate rise in consumer demand, according to a just-released forecast from IFMA The Food Away from Home Association.

The trade group also anticipates a slowdown next year in menu inflation, or what many in the industry cite as the key reason for declining orders of meals prepared outside the home. The association expects food costs to rise by 3% next year, compared with the 3.9% it projects for 2025.

The ease in pricing is expected despite the unknown impact of tariffs on the cost of imported foods and other overseas supplies for the food-away-from-home (FAFH) industry.

In addition to releasing its much-anticipated annual forecast for the multi-billion-dollar FAFH trade, IFMA The Food Away from Home Association adjusted its business expectations for 2025. The association is sticking with its February projection of a 0.9% inflation-adjusted or "real" rise in purchases by FAFH operations, which range from fine-dining one-of-a-kinds to c-stores, college dining rooms, employee cafeterias, and school lunchrooms.

The re-affirmed projection of moderate growth comes amid what many in the business characterize as a time of unprecedented uncertainty. Although the impact of the new tariffs has yet to be felt to any remarkable degree, gauges like the University of Michigan's highly respected Index of Consumer Sentiment shows the public is already spooked.

But the new association data indicate the FAFH business expects growth next year, albeit moderate.  And virtually all of the increased sales for operators will likely come from price increases. Patron traffic is expected to continue ebbing, though not as severely as has this year, according to the forecast.

Still, "the sky is not falling," said Charlie McConnell, IFMA's VP of Industry Insights, Education, and Research. "We're the foodservice industry; we'll be fine."

"The forecast for growth during this time of uncertainty speaks to the resilience of the business and the public's refusal to let economic worries temper their love of having someone else do the cooking," said Phil Kafarakis, CEO and President of IFMA The Food Away from Home Association. "The business has weathered wars, recessions, and even a pandemic. It'll emerge from this trying time ever stronger and more innovative."

The statistics underlying the 2026 forecast and updated 2025 projections were compiled for IFMA The Food Away from Home Association by Datassential, a well-respected researcher that specializes in foodservice.

Additional color was provided by the members of the association's Foodservice Leadership Councils, the segment-specific groups of operator members who keep the association grounded in real-world issues and opportunities.

Other key findings of the research:

- Purchases from FAFH suppliers should total $37.4 billion in 2026.
- That translates into a forecast of $1.1 trillion in total FAFH sales to consumers next year.
- Not all of that business will be shared evenly. Restaurants will continue to land the greatest share by far, with forecast sales of $783.9 billion.
- Even with that large sector, there's no tide floating all boats. The fast-casual sector will continue to lead in sales growth, with an expected growth of 2%.
- "Ghost" or virtual restaurants—delivery and takeout-only concepts whose menu items are prepared in the kitchens of other brands—are far from dead. Sales are forecast to top $2 billion in 2026.

KEYWORDS: Foodservice Operators inflation restaurant trends

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Women in beverge isle

    Ingredient Demonization May Not Drive Consumer Behavior

    While tracking cultural conversations around demonized...
    2025 Food and Beverage Trends
    By: Prepared Foods Editorial Staff
  • Bubs Candy Packages

    Sweden’s Viral Candy Brand BUBS Lands in US Retail Nationwide

    TikTok videos of BUB's unique chewy-meets-marshmallow...
    Candy
    By: Prepared Foods Editorial Staff
  • Innovation Month Logo Orange

    Introducing Innovation Month: A Deep Dive into the Future of Food & Beverage

    The next wave of food innovation is here. Dive into the...
    Breaking News
    By: Prepared Foods Editorial Staff
Manage My Account
  • eMagazine Subscription
  • Newsletters
  • Manage My Preferences
  • Online Registration
  • Subscription Customer Service

More Videos

Popular Stories

General Mills US250 Packages

General Mills Launches 79 Limited-Edition Summer Products

Circana Pacesetters 2026

Circana Highlights 2025 CPG Pacesetters

Bushs Baked Beans LTO Flavors

Bush’s Beans Debuts Summer-Inspired Flavors

PF Webinar sponsored by FoodChain: Signals to Shelf: Turning Consumer Insight into Executable Innovation

Events

June 18, 2025

Master the Art of Plant-Based Dairy

ON DEMAND: Whether you're in R&D, formulation, or innovation, this session will provide enzyme-driven insights to improve your plant-based dairy portfolio.

June 25, 2025

Market in Motion: Active Nutrition

ON DEMAND: Once targeted at athletes, active nutrition products with benefits like energy, focus, hydration, and protein are now winning over everyday consumers seeking support for their busy lifestyles.

View All Submit An Event

Products

Recent Advances in Ready-to-Eat Food Technology

Recent Advances in Ready-to-Eat Food Technology

See More Products

CHECK OUT OUR NEW POWER TRENDS

Immunity Logo
Natural & Organic Logo
Plant Based Logo
Protein Logo
Sugar Reduction Logo Sustainability Logo

Related Articles

  • Birds Eye View of People Eating at Table

    New Tariffs May Raise Costs for Foodservice Operators, Prompting Price Increases

    See More
  • Trends in Prepared Foods for Foodservice

    See More
  • Organic claims were featured in more than 50% of new baby/toddler foods in 2015

    Market Growth for Natural, Clean Label Products

    See More

Related Products

See More Products
  • The-Food-Business-Toolkit-Plus-1-Hour-Cover (1).jpg

    The Food Business Toolkit for Entrepreneurs (ebook)

  • bigfood.jpg

    Big Food: Critical perspectives on the global growth of the food and beverage industry

  • Food Safety for the 21st Century: Managing HACCP and Food Safety throughout the Global Supply Chain

See More Products
×

Unlock the Future of Food and Beverage Innovation

Are you a leader in research & development? Stay ahead of the curve with Prepared Foods, the premier source of information and insights for today's trend leaders and taste-makers in food and beverage manufacturing.

JOIN TODAY
  • Resources
    • Advertise
    • Contact Us
    • Food Master
    • Store
    • Join
  • Sign Up Today
    • Create Account
    • eMagazine
    • Newsletters
    • Customer Service
    • Manage Preferences
  • Services
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • Stay Connected
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

Design, CMS, Hosting & Web Development :: ePublishing