Food Service ACAFC 2010 - Usa

Overview of the Foodservice Market in the
Pacific Northwest United States
July 2010
The Government of Canada has prepared this report based on primary and secondary sources
of information. Readers should take note that the Government of Canada does not guarantee
the accuracy of any of the information contained in this report, nor does it necessarily endorse
the organizations listed herein. Readers should independently verify the accuracy and
reliability of the information. This report is intended as a concise overview of the market for
those interested in its potential and is not intended to provide in-depth analysis which may be
required by the individual exporter. Although every effort has been made to ensure that the
information is correct, Agriculture and Agri-Food Canada assumes no responsibility for its
accuracy, reliability, or for any decisions arising from the information contained herein.
Please address any comments or suggestions you have on this report to:
Ben Berry – ben.berry@agr.gc.ca

Overview of the Foodservice Market in the Pacific
Northwest United States
Table of Contents
Overview ........................................................................................................... 3
Pacific Northwest Region ...................................................................................... 5
Population and Food Consumption Trends ............................................................ 5
Opportunities and Challenges............................................................................. 7
State Economies and Canadian Trade.................................................................. 8
Alaska ............................................................................................................ 9
Idaho ........................................................................................................... 10
Oregon ......................................................................................................... 11
Washington ................................................................................................... 12
Key Metropolitan Areas ...................................................................................... 13
The Foodservice Sector ...................................................................................... 14
Commercial Foodservice Sector ........................................................................ 15
Fast Food ................................................................................................... 16
Quick/Fast-Casual........................................................................................ 17
Full-Service ................................................................................................ 18
Self-Service Cafeterias ................................................................................. 19
Cafés ......................................................................................................... 19
Food Stalls and Kiosks.................................................................................. 20
Home Delivery and Take-Away ...................................................................... 20
Travel Industry ........................................................................................... 21
Non-Commercial Foodservice Sector ................................................................. 22
Schools, Colleges and Universities.................................................................. 22
Health Institutions ....................................................................................... 22
National Foodservice Trends and Opportunities...................................................... 23
Current Trends and Reactions .......................................................................... 24
Health and Wellness..................................................................................... 24
Organics .................................................................................................... 25
Ethnic Cuisine ............................................................................................. 25
At-Home Meal Solutions ............................................................................... 26
Green Foodservice Establishments ................................................................. 26
Other Popular Trends ................................................................................... 26
Future Trends and Opportunities ...................................................................... 27
Breakfast ................................................................................................... 27
Snacking .................................................................................................... 27
Late-Night Offerings..................................................................................... 28
Key Target Markets ........................................................................................... 28
Ethnic Consumers .......................................................................................... 28
The American Indian and Alaska Native Consumer ........................................... 29
Hispanic Consumers..................................................................................... 29
African American Consumers ......................................................................... 30
Asian American Consumers ........................................................................... 30
Halal and Kosher Food Markets ........................................................................ 31
Mediterranean Food Market ............................................................................. 31
Competitive Environment ................................................................................... 31
Market Access .................................................................................................. 32
Food Distribution .............................................................................................. 32
Key Resources .................................................................................................. 33
Overview of the Foodservice Market in the Pacific Northwest United States 2

Overview of the Foodservice Market in the
Pacific Northwest United States
UPDATE April 2010: The Pacific Northwest economy, like that of the United States, has
struggled through a recession in the past couple of years. The economy began to slow in
2007 and a housing crash, credit crunch, the evaporation of consumer confidence,
energy costs and financial market uncertainty buffeted the national economy in 2008.
However, there appear to be some signs of improvement on the horizon leading into
2010. In summer 2009, gross domestic product and industrial production appeared to
hit their lowest point, and from then onward, began to strengthen. The policy-making
committee of the Federal Reserve Bank also announced that they believed the recession
to be ending (Leonhardt, 2009).
United States consumer spending and personal incomes appear to be improving. GDP is
expected to grow by 3% in 2010, after shrinking 2.4% in 2009 (AFP, 2009 and The
Economist, 2010). However, consumer confidence remains fragile (but gradually
improving) and unemployment is expected to remain elevated in 2010 (The Economist,
2009). Slow economic growth is expected to continue for 2010 as the recession recovery
continues. At the end of 2009, the restaurant and foodservice industry continued to face
difficulties during the still present recession. Despite this downturn, sales in current
dollars are expected to increase 2.5% in 2010. Adjusted for inflation, this represents flat
sales for 2010 and gradual improvement compared to the negative growth in real sales
that was experienced in 2008 and 2009 (National Restaurant Association, 2010). The
NPD Group estimates that restaurant traffic will remain weak throughout the first half of
2010, with visit rates then beginning to turn positive around mid-year (Restaurants and
Institutions, 2009). As key contributors to the economy, the restaurant industry is
expected to play an important role in the recovery of the United States economy
(National Restaurant Association, 2010). The outlook for franchise businesses is
expected to be more positive in 2010 than in 2009. Quick-service restaurants are
projected to experience economic output growth of 3.2% and employment growth of
0.8% in 2010, while the number of establishments is expected to increase 3.1%
(Restaurants and Institutions, 2009).
The information contained in this report takes into account the economic situation and
the forecasts available during this time period, but information will be further updated
once long term stability returns to this key market.
Overview
The Pacific Northwest United States, comprised of the states Alaska, Idaho, Oregon, and
Washington, offers some promising export opportunities for Canadian agri-food
companies. The Pacific Northwest states form a dynamic and growing market that has a
consumer base of approximately 12.7 million people; about 4.1% of the total American
population. Despite the importance of Washington State, where the majority of growth
in the region is occurring, the Pacific Northwest is home to several growing metropolitan
areas and medium sized-markets. The region may provide a somewhat less competitive
entry market than some of the much larger marketplaces in the United States, but the
area’s proximity to Canada has always been an advantage to Canadian exporters.

Attractive prospects for Canadian exporters lie in several Pacific Northwest markets
including Seattle-Tacoma-Bellevue, Washington; Portland-Vancouver-Beaverton,
Oregon-Washington; and Boise-City-Nampa, Idaho, which comprise significant
populations and continue to grow, although moderately. Several other smaller
metropolitan areas are also showing notable growth.
The Pacific Northwest’s growing population, particularly among Hispanic, Asian and
African American consumer groups, and a closely integrated economy and geographic
proximity to Western Canada, all combine to present a dynamic region with intriguing
opportunities for Canadian agri-food exporters. This is highlighted by that fact that
although the Pacific Northwest only accounted for 4.1% of the nation’s population in
2009, 9.5% of Canada’s total agri-food exports to the United States went to this region.
Quick Facts
 National restaurant sales are expected to reach US$580 billion in 2010,

representing 4% of United States gross domestic product (GDP) and an increase
of 2.5% from 2009.
 With 945,000 locations in 2010, the restaurant industry will employ 12.7 million
(9% of the United States workforce).
 Commercial establishment sales in 2010 are projected to reach US$530.4 billion.
Sales at eating places are expected to account for 73.3% of total commercial
sales, while retail, vending, recreation and mobile comprise 10.4%, managed
services 7.7%, lodging place restaurants 5.1%, and bars and taverns 3.5%.
 The restaurant industry’s share of the food dollar has been rising; growing from a
25% share in 1955 to a share of 49% presently.
 Value, convenience and greater menu options are expected to be key consumer
desires for the restaurant industry in 2010.
 Opportunities in 2010 are thus expected to centre on delivery/off-premise food
options and interactive activities such as cooking classes.
 The Pacific Northwest region is expected to account for 3.1% of restaurant
industry sales in the United States during 2010.
 Major growth areas in the foodservice market include quick and convenient
meals, premium products at fast food restaurants, healthy and organic options,
ethnic cuisine and at-home meal replacements.
 The Pacific Northwest region’s GDP was valued at US$585 billion in 2008;
accounting for 4.1% of the nation’s total. Washington accounts for 55.2% of the
region’s GDP.
 The Pacific Northwest region saw strong population growth of 11.4% between
2000 and 2008, and reaching 12.7 million in 2009.
As in other parts of the United States, food consumption in the Pacific Northwest region
is affected by the aging baby boom generation, smaller household sizes, time pressures
of dual-income households, and growing demand for healthy meals. Major trends
currently impacting the foodservice market include quick and convenient meals, healthy
and organic options, and ethnic cuisine. Continued growth of the ethnic food market is
expected as ethnic food increasingly enters everyday diets and more companies choose
to address the needs of these ever-growing demographic segments.

Pacific Northwest Region
The Pacific Northwest region offers a favourable business climate for Canadian exporters
wanting to test new markets, comprising approximately 4.1% of the United States
population and national GDP. The United States Pacific Northwest is also a part of a
dynamic larger economic region, along with Western Canada. Combined, they represent
one of the fastest growing regions in North America, with over 200 million people
residing in the area and gross regional product of more than US$700 billion (Pacific
Northwest Economic Region, 2007).
The Pacific Northwest’s economy centres on Oregon and Washington State, which
account for a combined 82.8% of the region’s GDP. The greater Seattle area in
Washington is very economically diverse, representing the region’s largest single market
and the wealthiest; possessing an approximate population of 3.3 million in 2007 which
accounts for over 25% of the region’s total population. This economic strength is, in
large part, due to some of the world’s most high-profile companies being based in the
area. Such prominent companies include Microsoft, Boeing, Amazon, Starbucks, and
Costco. Not surprisingly, prominent aerospace, ICT, life sciences, clean technology and
alternative energy sectors exist in the Seattle area. Oregon has a similarly diverse
economy, along with a concentration of large corporations, while Idaho’s market is
smaller than both Washington and Oregon, and mostly agriculturally driven. As a result,
Idaho may offer Canadian exporters opportunities in the form of agricultural inputs.
While the largest state geographically, Alaska represents the smallest market in the
Pacific Northwest, both by population and GDP. However, the state population has been
growing faster than the national rate and is quite a young population.
Due to the proximity of Western Canada to the Pacific Northwest, numerous

partnerships exist among United States and Canadian companies in this region. A
significant amount of Canadian direct investment is also present in the Pacific Northwest,
providing a solid foundation for further ties and business opportunities between
Canadian and United States companies in the region (Export Development Canada,
2008).
Population and Food Consumption Trends
The Pacific Northwest is home to 12.7 million people, of which approximately 52.8%
reside in Washington. The region’s aging baby boomers are steadily driving the
population’s median age of 35 upwards. However, in 2007 three of the region’s states
had a population proportion of those “65 years old and over”, that was less than the
national average of 12.6%. The one exception is Oregon, with 13.1% of the population
65 years and older. Alaska and Idaho possess surprisingly young populations, with
26.7% and 27.2% of their populations “18 years and younger”, ranking the states 4th
and 3rd in the nation respectively (U.S. Census Bureau, 2009).
While the Pacific Northwest’s population does contain a significant percentage of people
65 and over, the region’s population continues to increase in size. The region
experienced 11.4% population growth between 2000 and 2008, with each state showing
noticeable and steady growth. Idaho’s population increased by approximately 17%,
Washington’s and Oregon’s by 11% each, and Alaska’s by 9%. These growth rates are
all above the national population growth rate of 7.8% for the same time period (U.S.
Census Bureau, 2009).

Seniors represent a very important consumer segment in the Pacific Northwest retail
grocery market. There are more than 38 million Americans age “65 and over” in the
United States; 3.9% of which live in the Pacific Northwest. Washington alone is home to
over 766,000 seniors or 52% of the region’s total, while Oregon has a population of
nearly 500,000 or 33.2%. However, as the opportunities increase, the need to
accommodate and adjust services to serve this demographic is evident.
Due to the close proximity to the Canadian border, the Pacific Northwest region’s
consumers share many attributes with their Western Canadian counterparts. Their
willingness to try new products, especially imported gourmet and specialty foods,
presents numerous opportunities for Canadian exporters looking to penetrate the
American market. Seattle in particular remains a popular test market in the United
States due to its manageable size, consumer demographics, high per capita income
level, and isolation from neighbouring urban centres. The Seattle area is located a mere
120 miles from the Canadian border, with a population comprised of nearly half a million
consumers originally from Canada (Foreign Affairs and International Trade, 2007).
Consequently, Seattleites are willing to try new products and unique foods, creating
excellent prospects for Canadian food companies.
Despite similarities, distinct trends exist in each of the Pacific Northwest states. Age,
race, and income demographics vary from state to state and county to county. Oregon,
for example, has a significant Hispanic community, as does Idaho and Washington, while
Alaska has a larger American Indian and Alaska Native population. The Pacific Northwest
states also have an American Indian and Alaska Native population proportion nearly
three times that of the national average. Washington also has a particularly high
representation of Asian American consumers; while Alaska’s Asian population is also
higher than the national average (U.S. Census Bureau, 2007).
The region is home to several large metropolitan areas, that have experienced
considerable growth in their Hispanic and Asian consumer markets, and now represent
sizeable portions of the total consumer population. The Hispanic and Asian consumer
markets in Seattle each comprise approximately 8% of the total area population.
Portland’s Hispanic consumers represent 9% of the total market, while Asian consumers
represent 3.5%. The Spokane market is comprised of an 8% Hispanic population, while
the Anchorage market’s Hispanic and Asian consumers comprise approximately 4.5%
each of the total population (Foreign Affairs and International Trade, 2007).
In today’s Pacific Northwest region there is no longer a homogeneous consumer market

to target. Consumers must now be categorized and marketed to according to various
demographics including ethnicity, age, income, and neighbourhood of residence.
The Pacific Northwest contains some of the fastest growing metropolitan and
micropolitan areas in the United States. The Bend Oregon area is estimated to have
increased 35.9% from 2000, with a population of 158,456 making the area the 8th
fastest growing in the nation. Boise City-Nampa, Idaho was the 20th fastest growing
region in the nation, increasing 27.9% to total 599,753 in 2008. Rexburg, Idaho was the
22nd fastest with an increase of 27.4% to total 50,007. Of combined statistical areas in
the United States, Bend-Prineville, Oregon increased 33.5% from 2000 to 2008, Idaho
Falls-Blackfoot, Idaho, 16.1% and Seattle-Tacoma-Olympia, Washington, 9.9% (U.S.
Census Bureau, 2009). Washington is a leader in the region, with a high-population,
large-economy, and the most urban centres in the region. The state holds the two
largest metropolitan areas in the Pacific Northwest region, Seattle-Tacoma-Bellevue and
Portland-Vancouver-Beaverton (in Oregon-Washington).

The Pacific Northwest’s food and beverage market has a value of approximately $46
billion; more than half of which is imported (58%). Some of the most rapidly growing
demand for agricultural imports is for fresh and processed fruits and vegetables, snack
foods, tree nuts, prepared meat products, wine, beer and coffee. (Foreign Affairs and
International Trade, 2007). Not surprisingly, caffeine and coffee consumption is
particularly high in Seattle, Washington. Seattle was ranked as the second most
caffeinated city in the United States, after Tampa, and ranked number one for
caffeinated coffee consumption, by the annual HealthSaver Caffeinated Cities Survey
(The Shelby Report of the West, March 2009).
Opportunities and Challenges
While the United States is a highly competitive marketplace, the Pacific Northwest region
as a whole is a medium-size market. This type of market can provide an easier, less
competitive and less expensive market entry into the United States. Several medium-
sized metropolitan markets also exist within the region, such as Seattle and Portland
(Foreign Affairs and International Trade, 2007).
While competition from national and international competitors may be reduced,

Canadian exporters will face intense competition from small- to medium-sized local and
national food manufacturers that typically operate on a regional level in the Pacific
Northwest states, especially since the area is known for its agricultural output. Alaska is
widely recognized for its seafood. Idaho is known for its potatoes, wheat, peas and
lentils. Oregon is recognized for its berries, crops and greenhouse products, while
Washington is known for its apples, beef, milk and wheat. Although local American
suppliers remain top competitors for Canadian exporters, the Pacific Northwest market
overall is quite open.
The geographic proximity of the Pacific Northwest to the Western provinces and
Canadian border, presents an opportunity for Canadian exporters. The economic and
business relations between Western Canada and the Pacific Northwest are enablers for
building close trade relationships and partnerships that increase the prosperity of the
joined region. Nearly all of the Pacific Northwest states (Washington, Idaho, Alaska)
physically border Canadian provinces, touching British Columbia and the Yukon. This
proximity to Canada is also beneficial with regards to consumers being more likely to
have similar lifestyles and eating habits as Canadian consumers in the Northwest.
However, the market is not self-sufficient and there is strong demand for imports from
external sources. Products from other states provide significant support for food
capabilities in the region (Foreign Affairs and International Trade, 2007). Nevertheless,
the diversity in food commodities exported to Canada from the Pacific Northwest region
demonstrates that each state holds different strengths in agricultural production. The
food sector in the region also provides an increasingly larger range of niche markets,
with prepared, specialty, and value-added foods particularly promising food products in
the Pacific Northwest (Export Development Canada, 2008).
The popularity of ethnic food in the United Sates has been growing due to the growth of
certain population segments and the fact that more consumers are willing to try different
foods. Continued growth of the ethnic food market is expected as ethnic food
increasingly enters everyday diets and more companies choose to address the needs of
these ever-growing demographic segments. As a whole, the Pacific Northwest possesses
a smaller total ethnic population than the national average. However, there is still a

strong Hispanic presence in some of the states, as well as Asian American, and American
Indian and Native Alaska population representation greater than the national average
(U.S. Census Bureau, 2008).
State Economies and Canadian Trade
The Pacific Northwest region of the United States represents a notable market for
Canadian agri-food exports. While China, Chile, Brazil, Indonesia and Vietnam have
increasingly supplied agri-food products to the region, imports from Canada comprise
more than 31% of the Northwest’s total food imports (Foreign Affairs and International
Trade, 2007). Canada also provides an important market for the Pacific Northwest’s
exports. Oregon’s largest foreign export market in 2007 was Canada, accounting for
16% of Oregon’s merchandise goods, with bilateral trade of US$5.4 billion. Oregon’s
increasing partnership with Canada, particularly in relation to trade, is a large driver for
the economy of the Pacific Northwest. Strong trade relationships are also present with
the remaining Pacific Northwest states, with Canada ranking as Washington’s largest
export market, one of Idaho’s top three international export markets, and Alaska’s
fourth largest export market (Government of Canada, 2008).
A considerable amount of the Pacific Northwest states’ Canadian total imports are
agriculturally-based. Agriculture ranked as the second largest category of Canadian
imports for both Idaho and Washington in 2007, accounting for 19% and 8% of imports
respectively, while ranking third for Oregon and accounting for 10% of the state’s total
Canadian imports (Government of Canada, 2008).
Overall, the region accounted for 9.5% ($1.7 billion) of Canada’s total agri-food exports
to the United States in 2009, experiencing an increase in exports of 10.4% from 2006 to
2008. This increase is greater than Canada’s total increase in agri-food exports to the
United States (9.1%) for the same time period. While the Pacific Northwest comprises
only 4.1% of the national population, it accounts for more than double that percentage
of total Canadian agri-food imported into the nation (9.5%). From 2006 to 2008,
Canadian agri-food exports to the region grew steadily. However, in 2009, Canada’s
agri-food exports to the United States dropped 11.6%. Agri-food exports to the Pacific
Northwest correspondingly dropped, but only by 5.6%, illustrating the strength of the
region and the trade relationship with Canada.
Top Canadian agri-food export products to the Pacific Northwest in 2009 were: live
bovine (a value of $420.8 million or 25.2% of total exports to the region), refined canola
oil, colza oil and its fractions ($97.8 million or 5.9%), raw mink furskins ($65.9 million
or 3.9%), wheat nes and meslin ($53.6 million or 3.2%), and fresh cranberries,
bilberries and other similar fruits ($52 million or 3.1%). Live animals are consistently the
major export category to the Pacific Northwest, accounting for between 25% and 35% of
Canada’s annual agri-food exports to the region in the past four years.
Main Canadian agri-food export categories to the region were: live animals; edible
vegetables and certain roots and tubers, pulses; animal/vegetable fats and oils,
margarine; food industry residues and waste; fruit and nuts.
Although Canadian agri-food exports to the region grew 10.4% from 2006 to 2009,
growth in the four states varied. While Washington, by far, accounted for the largest
value of Canadian agri-food exports to the Pacific Northwest in 2009 (71.1%), growth
from 2006 to 2009 was significantly lower than the other states, at 4.2%. On the other
hand, Idaho represented 10.1% of exports to the region; demonstrating a substantial

growth of 34.5% from 2006 to 2009. With the smallest population, Alaska represented
both the smallest value of exports and growth, at 0.5% and 22.1% respectively.
However, it is worthwhile to note that while Canada’s agri-food exports to the Pacific
Northwest dropped in 2009, as did the exports to Washington, Oregon and Idaho;
Alaska was the sole state in the region to experience an increase (15.4%) in agri-food
imports from Canada.
The two largest Canadian agri-food exporting provinces to the Pacific Northwest in 2009
accounted for 76% of Canada’s total agri-food exports to the region. Alberta is the
largest agri-food exporter with exports of $647.8 million, accounting for 38.8% of total
Canadian agri-food trade to the region. British Columbia is the second largest, with
exports of $622.7 million and representing 37.3% of total Canadian agri-food exports to
the Pacific Northwest. Saskatchewan, Ontario and Manitoba follow, representing 8.2%,
6.2% and 5.4% respectively of Canada’s agri-food exports to the region.
The majority of Canadian agri-food exports to the Pacific Northwest in 2009 were
intermediate exports valued at $859.3 million. This represented 51.4% of total Canadian
agri-food exports to the region and a growth of 9.2% from 2006. Main intermediate
export categories in 2009 were: live animals; animal/vegetable fats and oils; food
industry residues and waste; furskins; and grain products, malt, and starches.
Consumer exports to the Pacific Northwest comprised 42.2% of Canada’s agri-food
exports to the region, with a value of $705.1 million, and growth of 1.7% from 2006.
Main consumer export categories were: edible vegetables and certain roots and tubers;
fruits and nuts; meat and edible meat offal; preparations of grains, pasta; and
miscellaneous edible preparations. While Canadian bulk exports represented only 6.4%
of Canada’s agri-food exports, this category experienced considerable growth of 220.3%
from 2006. This was the only category with increased exports, experiencing a 27.2%
growth in 2009. Both intermediate and consumer exports decreased 10.3% and 3.2%
respectively. Main bulk export categories were: grains, bulk or cereals; oilseeds, seeds
for sowing, fodder; coffee, tea, maté and spices; sugars and sugar confectionery; and
other textile fibres.
Pacific Northwest Region - Importance to Canadian Agri-Food Exporters

Canadian
Population as Total Restaurant Exports as
Population Agri-Food
State/Region Percentage of Sales (2010 Percentage
(2009)* Exports to
Region Projected) of Region
State (2009)
Alaska 0.7 million 5.5% US$1.2 billion $8.1 million 0.5%
Idaho 1.5 million 12.1% US$1.7 billion $169.1 million 10.1%
Oregon 3.8 million 30.0% US$5.7 billion $305.9 million 18.3%
Washington 6.7 million 52.3% US$9.5 billion $1,188.2 million 71.1%
Pacific Northwest 12.7 million 100.0% US$18.1 billion $1,671.3 million 100.0%
United States 307.0 million US$580.1 billion $17.6 billion
Sources: Population Finder, and The 2009 Statistical Abstract, U.S. Census Bureau; National Restaurant
Association, CATS Database
*estimate, U.S. Census Bureau
Alaska
 Total restaurant sales are expected to reach US$1.2 billion in 2010.
 In 2008, there were 1,327 eating and drinking establishments.
 The restaurant industry currently employs 26,100, and is expected to experience
a job growth of 15.3% by 2020.
 In 2010, Nielsen Claritas ranked Alaska to be the 6th best state for opening a
restaurant.

 2008 population: 686,293, ranking the state 47th in the nation and representing
0.2% of the national population. From 2000 to 2008, the population grew 9.4%,
greater than the national average of 7.8%. 2009 population is 698,473 (U.S.
Census Bureau).
 The capital of the state is Juneau, while the largest city is Anchorage with a
population of 272, 687 (USDA, 2009).
 Alaska has the youngest median age of the Pacific Northwest states, at 33.4
years, which is below the national median age of 36.6 years. Not surprisingly, the
state possesses a larger proportion of the very young, with 7.6% of Alaska’s
population “under 5 years” of age and 26.2% “under 18 years” (compared to
6.9% and 24.5% nationally), while only 7.3% are “65 and older” (compared to
12.8% nationally) (U.S. Census Bureau, 2008).
 Gross Domestic Product 2008 – all industries: US$47.9 billion, ranking the state
45th in the nation.
 Per capita personal income 2007: US$40,352, ranking the state 15th nationally
 Unemployment rate June 2009: 8.4%, ranking the state 22nd, and below the
national rate of 9.5%. The 2007 rate was 6.2%, ranking Alaska 48th.
 Geographically, Alaska is the largest state and a fifth of the size of the contiguous
United States (USDA). However, less than 1% of the land is farmed. Long
summer daylight allows for the production of world record-breaking vegetables,
with main crops being barley, hay, potatoes, and commercial seafood a main
industry. Greenhouse and nursery crops are the fastest growing agriculture
sector (USDA, 2009).
 Mineral investment is a large area of direct investment into Alaska from Canada,
with Canadian owned mines providing significant revenue to the local
government. Canadian transportation companies are also well represented,
perhaps providing an advantage to Canadian exporters.
 Canadian-Alaskan trade is vital to the state’s economy. Canada’s agri-food
exports to Alaska totalled $8.1 million in 2009, making up less than 1% of total
agri-food exports to the United States. This ranked the state 49th overall for
Canada’s agri-food exports. Despite this poor ranking, Canadian agri-food exports
grew 22.1% from 2006 to 2009.
 Top agri-food exports from Canada to Alaska were: animal feed preparations,
representing 38.5% of total agri-food exports to the state; non-roasted malt
(28.6%); live plants (15.8%); trees, edible fruit or nut, shrubs and bushes
(1.4%); and live bovine (1.3%).
Idaho
 Total restaurant sales are expected to reach US$1.7 billion in 2010, with Idaho
experiencing the second strongest state sales growth (2.8%) in the United
States.
 The restaurant industry currently employs 58,600, and is expected to experience
an 11.8% job growth by 2020.
 Idaho was ranked by Nielsen Claritas as being the 48th best state for opening a
restaurant in 2010. Coeur d’Alene was ranked as the 141st best metro location to
open a restaurant in the United States.
 2008 population: 1.5 million, ranking the state 39th in nation and representing
0.5% of the national population. Idaho’s population increased 17.3% from 2000
to 2008, and nearly 16% from 2006, making it one of the fastest growing states,
largely due to immigration from other states and countries. 2009 population
remains at 1.5 million (U.S. Census Bureau, 2008).

 The state capital and largest city is Boise with a population of 185,787.
 Idaho’s median age is 34.2 years and is slightly below the national average of
36.6 years. A large portion of the state’s population (27.1%) is “under 18 years”,
compared to 24.3% nationally, while the population proportion of those “under 5
years” is also above the national rate, and the proportion “65 years and older” is
only slightly below the national (U.S. Census Bureau, 2008).
43rd nationally.
 Per capita personal income 2007: US$31,197, an increase from $29,290 in 2006.
This is below the national average of US$36,714; ranking the state 40th (The
Shelby Report of the West, December 2008).
 Unemployment rate June 2009: 8.4%, ranking the state 22nd and lower than the
national average of 9.5%. The 2007 rate was 2.7%, ranking Idaho 2nd.
 Agriculture is important, employing many habitants, and producing nearly 1/3 of
potatoes grown in the United States (The Shelby Report of the West, December
2008). Idaho ranks 1st in the nation for potato production and 7th for wheat.
Despite the importance of potatoes and wheat, cattle milk is the state’s main
agricultural commodity. Of the state’s agricultural exports, 23.2% are destined
for Canada (USDA, 2009).
 Canada’s agri-food exports to Idaho totalled $169.1 million in 2009; representing
1% of Canada’s total agri-food exports to the United States and thus ranking the
state to be 28th overall. From 2006 to 2009, Canadian agri-food exports to the
state experienced considerable growth, increasing 34.6%. This was significantly
higher than the national growth rate of 9.1%.
 Top agri-food export products from Canada to Idaho were: rape/colza seed,
representing 18.4% of exports; refined canola, colza oil (11.8%); live bovine
(10.3%); lucerne/alfalfa seeds (10.3%); and barley (5.1%) (CATS, 2010).
Oregon
 The restaurant industry currently employs 165,200, and is expecting a 13.7% job
growth by 2020.
 Oregon was ranked the 9th best state to open a restaurant in the United Sates.
Medford, Oregon was ranked as the 74th best metro location in the United States,
while Bend, Oregon was placed 82nd.
 2008 population: 3.8 million, ranking the state 27th in the nation and
representing 1.2% of the national population. From 2000 to 2008, Oregon’s
population grew 10.5%, higher than the national average of 7.8%. 2009
population is 3,825,657 (U.S. Census Bureau, 2008).
 Salem is the state capital, and Portland the largest city with a population of 562,
960.
 Oregon’s median age is 37.8, just slightly above the national average of 36.6
years. The population age proportions closely follow that of the national average,
with a population “65 years and older” only slightly higher than the national rate
26th nationally.
 Per capita personal income 2007: US$34,784, ranking the state 28th and
increasing from US$33,299 in 2006 (The Shelby Report of the West, December
2008). Personal income is expected to continue to increase positively, with
growth of 4.4% and 5.6% expected for 2009 and 2010 (Potiowsky, 2008).

 Unemployment rate June 2009: 12.2%, ranking the state 49th and higher than
the national average of 9.5%. The 2007 rate was 5.2%, ranking Oregon 42nd.
 Oregon has strong wine and salmon industries, ranking third nationally for
wineries, with 303 wineries, and possessing the world’s largest salmon-fishing
industry (The Shelby Report of the West, December 2008). Greenhouse and
nursery products, grass seed, hay, wheat, potatoes, Christmas trees, onions, and
pears are the state’s main crops, while beef cattle and dairy products are main
livestock commodities (USDA, 2009).
 Oregon’s diverse economy results in an eclectic trade combination, and Canada is
the state’s largest foreign export destination. Canada and Oregon also share a
strong energy relationship, bilateral tourism industry, and numerous relationships
and partnerships exist between Canadian companies and Oregon.
 Alaska also aids in Canada’s exports internationally. The Port of Portland
represents an important transportation connection for Canadian goods and is a
gateway to the Asia Pacific market.
 Canada’s agri-food exports to Oregon totalled $305.9 million in 2009;
representing 1.7% of exports to the United States and thus ranking the state to
be 19th overall. From 2006 to 2009, Canada’s agri-food exports to Oregon grew
26.8%.
 Top agri-food exports from Canada to Oregon were: wheat and meslin,
representing 17.5% of exports; refined canola, colza oil (10.9%); fresh or chilled
boneless bovine cuts (10.6%); frozen fruits and edible nuts (6.5%); and oats
(5.8%)
 Grains, bulk or cereals are consistently a noticeable export category to Oregon,
representing between 10-24% of Canada’s annual agri-food exports to the state
from 2007 to 2009 (CATS, 2010).
Washington
 The restaurant industry currently employs 279,000, and is expected to
experience a 10.6% job growth by 2020.
 2008 population: 6.5 million, ranking the state 13th in the nation and
representing 2.2% of the national population. From 2000 to 2008, Washington’s
population increased 10.8%, noticeably higher than the national average of
7.8%. 2009 population is 6,664,195 (U.S. Census Bureau, 2008).
 Significant immigration growth is forecast for Washington, with a net immigration
of 27% expected to occur in the next 20 years (Foreign Affairs and International
Trade Canada, 2007).
 Olympia is the state capital, while the largest city is Seattle with a population of
563, 374 (USDA, 2009).
 Washington’s median age is 37.1, just slightly above the national average of 36.6
years.
14th in the nation.
 Real GDP growth for the state is expected to continue to modestly increase
through 2011, with annual growth of 2.2%, 3.0%, and 3.2% expected from 2009
to 2011 (Bertolin, 2008).
 Per capita personal income 2007: US$40,414, ranking the state 14th in the nation
and a slight increase from 2006. Personal income is expected to grow 4.4% in
2009, 5.1% in 2010, and 5.6% in 2011, with personal disposable income
expected to experience similar positive growth (Bertolin, 2008).

 Unemployment rate June 2009: 9.3%, ranking the state 34th and only slightly
below the national average of 9.5%. The 2007 rate was 4.5%, ranking
Washington 27th.
 Two key sectors in Washington are Aerospace and Software, which continue to
expand and aid in stimulating employment growth and investment in the state
(Bertolin, 2008).
 Washington is the 4th largest wheat producer in the United States. Apples, milk,
potatoes, cattle and calves are other key agricultural commodities, and chicken
production has been increasing (USDA, 2009). Washington also has a significant
fishing sector, featuring salmon, halibut, bottomfish, oysters and crabs (The
Shelby Report of the West, December 2008).
 Canada’s agri-food exports to Washington totalled $1.2 billion in 2009;
representing 6.7% of exports to the United States and thus ranking the state to
be 4th overall. Canada’s agri-food exports to Washington grew 4.2% from 2006 to
2009.
 Top Canadian agri-food exports to the state were: live bovine, representing
33.9% of exports; raw mink furskins (5.5%); cranberries, bilberries and other
related fruits (4.1%); fresh or chilled tomatoes (4%); and refined canola, colza
oil (3.7%).
 Live animals are consistently a large export category to Washington, representing
between 30-42% of Canada’s annual agri-food exports to the state from 2006 to
2009 (CATS, 2010).
Key Metropolitan Areas
Seattle-Tacoma-Bellevue, Washington
 Ranked 15th in 2009 with an estimated population of 3.4 million.
 Population growth of 1.7% from 2008 to 2009, ranking the area to be 72nd
overall.
 There has been significant growth in the Asian and Hispanic consumer market,
each representing an estimated 8% of the total population (Foreign Affairs and
International Trade Canada, 2007).
 Seattle ranked 4th out of Forbes’ list of America’s fastest growing large
metropolitan areas, with Gross Metropolitan Product growth of 22.7% projected
to occur from 2007 to 2012. This is largely due to Microsoft and Boeing’s
significant presence, as well as the area having the fifth largest concentration of
biotech companies in the nation (Pentland and Wingfield).
 Seattle also ranked as the 18th best metro area in Forbes’ 2010 Best Places for
Business and Careers.
 Median household income for Seattle is $62,717, while income growth is 1.5%
(annualized over five years).
Portland-Vancouver-Beaverton, Oregon-Washington
 Portland-Vancouver was ranked by Nielsen Claritas as the 107th best metro
location for opening a restaurant in the United States in 2010.
 In 2009, the area was ranked 23rd in the nation with an estimated population of
2.2 million.
 Population growth of 1.5% from 2008 to 2009, ranking the area to be 54th
overall.

 Portland has experienced a noticeable influx of Hispanic consumers, representing
approximately 9% of the total population, while Asian consumers comprise 3.5%
(Foreign Affairs and International Trade, 2007).
 Portland ranked as the 19th best metro area in Forbes’ 2010 Best Places for
 Median household income for Portland is $55,948, while income growth is 3.2%.
Boise City-Nampa, Idaho

 Estimated population of 606,376 in 2009, ranking the area 85th in the nation.
 Population growth of 1.3% from 2008 to 2009, ranking the area to be 100th
overall.
 Boise ranked 3rd in the nation as Forbes’ best metros for business and careers in
2007 (Badenhausen).
 Boise ranked as the 25th best metro area in Forbes’ 2010 Best Places for Business
and Careers.
 Median household income for Boise is $51,025, while income growth is -0.3%.
Anchorage, Alaska
 According to the Nielsen Claritas Restaurant Growth Index (RGI), Anchorage is
the 20th best metro location to open a new restaurant in 2010 and beyond.
Neilsen bases their best location rankings for new restaurants largely on college
towns and vacations spots; not necessarily the biggest cities.
 With 998 restaurants in the metro area and US$861,467 sales per restaurant,
total restaurant sales are US$859.7 million. Restaurant sales per capita are
US$2,305.
 Anchorage ranked as the 44th best metro area in Forbes’ 2010 Best Places for
 Median household income is $67,751, while income growth is 2.9%.
Pacific Northwest United States (U.S.) – Fastest Growing Metropolitan Areas (2009)
Population Growth
U.S. Rank Metropolitan Area Population
2008-09
2 Kennewick-Pasco-Richland, WA 0.246 million 3.6%
7 Logan, UT-ID 0.128 million 2.9%
16 Idaho Falls, ID 0.126 million 2.4%
17 Anchorage, AK 0.375 million 2.4%
25 Olympia, WA 0.251 million 2.2%
49 Bellingham, WA 0.200 million 1.8%
50 Coeur d'Alene, ID 0.139 million 1.7%
54 Portland-Vancouver-Beaverton, OR-WA 2.242 million 1.7%
72 Seattle-Tacoma-Bellevue, WA 3.408 million 1.5%
84 Salem, OR 0.396 million 1.4%
89 Spokane, WA 0.469 million 1.4%
100 Boise City-Nampa, ID 0.606 million 1.3%
135 Corvallis, OR 0.083 million 1.0%
183 Eugene-Springfield, OR 0.351 million 0.8%
240 Medford, OR 0.201 million 0.5%
The Foodservice Sector
The National Restaurant Association forecasts that annual restaurant sales in the United
States will reach US$580 billion in 2010, with 12.7 million employees and 945,000
locations. This is an increase from the forecasted restaurant sales of US$566 billion for
2009. Eating places are the primary contributors to commercial foodservice sector sales

and are expected to generate US$388.5 billion in sales in 2010 (73% of total commercial
sales), followed by managed services (7.7%), retail, vending, recreation and mobile
foodservice (10.4%), lodging place restaurants (5%), and bars and taverns (3.5%). On
a typical day in 2010, restaurant industry sales are predicted to be US$1.6 billion, and
more than 130 million individuals will be patrons of foodservice. Slightly less than half
(44%) of adults state that restaurants are an essential part of their lifestyle, while 40%
of adults agree that purchasing meals from restaurants, take-out, and delivery places,
makes them more productive. Although the foodservice industry has seen growth in the
past 10 years, recent economic uncertainties and rising business costs have negatively
impacted this sector. In order to remain competitive, foodservice operators are
attempting to differentiate themselves from their competitors and offer value-added
products and services in order to attract new customers. To meet customer demands
and continue to grow, the restaurant industry will have to adapt to new menu trends
and evolving consumer preferences.
The foodservice sector is also being impacted by new regulations and lawsuits relating to
product labelling and ingredients in states throughout the United States. In May 2008,
New York City became the first municipality to enact menu-labelling requirements.
Within the Pacific Northwest, the King County Board of Health in Seattle, Washington
adopted regulations requiring certain chain restaurants to display nutritional information
on their menus. The state or Oregon, as well as the Multnomah County Board of Health
in Oregon have also passed similar menu labelling regulations. The movement toward
menu-labelling requirements continues to gain momentum, and could have a significant
impact on the foodservice industry in the United States.
Growing concerns at a national level about the health risks associated with trans fats are
also impacting the foodservice sector. As a result, California has declared that the state
will enact regulations phasing out the use of trans fats in restaurants beginning in 2010,
while New York City has banned trans-fats at restaurants since December 2006. Many
leading fast food restaurants have been working to eliminate trans fats from their
products while maintaining flavour. Although growing concern about trans fats has yet
to strongly impact all states, it is expected to have an influence on the foodservice
sector at a national level.
Commercial Foodservice Sector

Commercial foodservice providers account for nearly 80% of away from home
expenditures. Current trends within the commercial foodservice sector include fast food
outlets redesigning their menus to offer more premium and healthy options, as well as
full-service restaurants improving service and take-away options to compete with
quick/fast-casual and fast food options. Restaurants are also competing to meet the
needs of time-constrained diners with home meal replacement products. Restaurants
are offering healthier choices and attempting to associate their food products with
popular health-oriented brands in order to tap into the trend toward healthier eating.
There is a growing demand for ethnic cuisine, with Asian (particularly Chinese and
Japanese) fast food and full-service restaurants seeing strong growth. With the slowing
economy, restaurant operators are also expected to use more regional ethnic cuisine
and specific flavours as a way of differentiating themselves in the marketplace; such as
Jalisco-style Mexican, and Korean and Vietnamese as opposed to simply ‘Asian’ cuisine
(Crews, 2009).
Overall, the consumer foodservice sector has seen limited growth in recent years with
economic uncertainty leading to a growing number of consumers opting to eat at home
rather than dine out. This is resulting in decreasing consumer traffic within the consumer

foodservice market, especially in the full-service restaurant sector. Many consumers are
also “trading down” from full-service restaurants to more affordable fast food and
quick/fast-casual alternatives. However, foodservice outlets continue to diversify their
menu and promotional offerings to expand their consumer base and tap into new market
opportunities.
Fast Food
 Fast food value sales grew by 4% in 2008 to total US$186 million. This amount
was driven by the number of consumers who are trading down from full-service
formats to a more affordable alternative. However, it also deals with the
challenge of consumers eating at home more frequently (Euromonitor
International, Fast Food, 2009).
 The number of fast food outlets in the United States grew 1% in 2008 to reach
249,992 units (Euromonitor International, Fast Food, 2009).
 Take-away sales accounted for 74% of value sales in 2008 (Euromonitor
International, Fast Food, 2009).
 Burger fast food sales accounted for 48% of total sector sales in 2008
(Euromonitor International, Fast Food, 2009).
 Fast food chains dominate the American fast food market in terms of sales,
transactions and number of outlets.
The fast food sector has seen moderate growth in recent years. Value-conscious
consumers are increasingly trading down from full-service restaurants to dine at fast
food formats to save money. Although fast food restaurants often have lower-quality
and less innovation than their full-service competitors, the fast food sector satisfies
consumer demand for speed, convenience and value. Consumers are also increasingly
demanding food that can be eaten on-the-go (often in their car), a segment of the
market that is well addressed by the fast food sector. In order to remain competitive,
fast food restaurants are increasingly offering a more premium experience, greater
menu selection, and better service, while maintaining a low-price strategy that attracts
consumers. For instance, both Burger King and McDonald’s have upgraded their beef
patties and are now offering Angus beef burgers. Premium products are becoming an
important business strategy for leading fast food chains. Meanwhile, the fast food sector
continues to promote value-priced food and the “value menu” continues to maintain
popularity.
United States - Leading Foodservice Chain

Brands by Number of Outlets (2008)
Rank Brand Outlets
1 Subway 21,635
2 McDonald’s 13,867
3 Starbucks 10,987
4 Pizza Hut 7,564
5 Burger King 7,213
6 Dunkin’ Donuts 5,863
7 Wendy’s 5,742
8 7-Eleven 5,622
9 Taco Bell 5,588
10 KFC 5,253
Source: Euromonitor International, Consumer Foodservice, 2009
Hamburgers, a perennial favourite in the United States, continue to remain extremely

popular and are one of the fastest growing sub-sectors. Hamburger fast food sales
accounted for 48% of sales in 2008 with 44% of all restaurants having a burger on their

menu; representing a 7% increase from 2006. Burger chains have also been
consistently effective at adapting to the changing American fast food market. For
instance, McDonald's has begun offering premium coffee to attract customers.
One of the other fastest growing sub-sectors within the fast food market is Asian fast
food chains. The rapid expansion of chains such as Panda Express and Noodles & Co.
has fuelled growth. Asian outlets, particularly Chinese and Japanese, are experiencing
growing popularity in the United States. Other Asian restaurants, such as Thai, Indian
and Vietnamese, are predicted to see strong future growth, despite only currently
controlling a small market share.
Quick-service gourmet coffee and bakery sandwiches are other top performers in the
American foodservice market. Although beverages currently only make up 7% of total
fast food sales, they are growing in importance in the highly competitive fast food sector
(Euromonitor International, Fast Food, July 2008). In 2006, both Dunkin’ Donuts and
McDonald’s successfully introduced value-priced premium drip and iced coffees to their
menus. Likewise, bakery fast food saw strong value growth of approximately 4% in
2008 (Euromonitor International, Fast Food, 2008 and 2009). Bakery restaurants are
well-positioned to meet consumer demand for healthy, fresh, premium products in a fast
food environment. Nonetheless, there is growing competition in this area from fast food
restaurants, particularly burger chains, which are offering an expanded selection of
better-for-you and premium products.
Quick/Fast-Casual
Within the commercial foodservice sector, quick/fast casual dining is seeing some of the
largest growth, with sales having increased approximately 15% from 2002 to 2007, and
an additional 9% in 2008 (Euromonitor International, Fast Food, 2008 and 2009). Like
traditional fast food restaurants, quick/fast-casual restaurants offer rapid and convenient
service, but are able to offer better service, higher-quality ingredients and a larger
selection in an upscale setting. This segment has been experiencing strong growth as
consumers continue to trade down to these lower-priced formats that offer fresh, high-
quality meals. Most quick/fast-casual restaurants focus on sales at breakfast and lunch,
with a limited dinnertime presence, but are seeing sector-leading growth in these areas
while other segments are experiencing a decline in customer traffic. Such restaurants
are especially popular with affluent baby boomers and young professionals who have
experienced fast food fatigue, but lead busy lifestyles. When compared to traditional fast
food restaurants, consumers highlight value, friendliness, atmosphere, cleanliness,
accuracy and preparation as reasons for return visits.
Many fast food outlets are redesigning their menus to mimic the selection available at
quick/fast-casual restaurants. To capture many of the full-service consumers who are
trading down, fast casual dining is switching to a focus on dinner and the promotion of
new products Quick/fast-casual operators in the Pacific Northwest, such as Panera Bread
and Chipotle Mexican Grill, have specialized in providing premium dishes and ingredients
at reasonable prices, as well as service at the speed of a fast food restaurant.
Trends within the quick/fast-casual sector include:

 Nuevo Latino restaurant chains are a rapidly growing Latin American quick/fast-
casual market niche.
 Custom-made sandwiches are increasingly popular and made with fresh and
specialty ingredients, which meet demand for convenient and fresh food.

 Wraps, pitas, tortillas, salads, chicken sandwiches and breakfast sandwiches, as
well as energy drinks and specialty coffee beverages are becoming increasingly
popular choices at quick/fast-casual establishments.
 Quick/fast-casual restaurants are adding specialty items to their menus, such as
bourbon-baked beans, fresh-cut seasoned fries, and Hawaiian barbeque or
seafood appetizers.
Full-Service
 Full-service restaurant sales grew by an overall 1% to reach US$210.2 billion in
2008, driven largely by growth of Asian and European restaurants. However,
certain sub-segments, such as casual dining, experienced static and/or negative
growth in 2008 (Euromonitor International, Full-Service Restaurants, 2009).
 In order to boost traffic and sales, full-service restaurants are implementing take-
away options, increasing advertising and offer specials, and revamping menus by
adding more variety and experimentation with comfort foods. (Euromonitor
International, Full-Service Restaurants, 2009).
 The number of full-service outlets decreased slightly, reaching 236,513 outlets in
2008 (Euromonitor International, Full-Service Restaurants, 2009).
 Sales transactions and value are expected to remain relatively stable from now
until 2013, due to consumers limiting spending on food away from the home
(Euromonitor International, Full-Service Restaurants, 2009).
 Upcoming trends include healthier food options for children, Middle Eastern
flavours, comfort food innovation, reduced sodium, and fresh, local ingredients
(Euromonitor International, Full-Service Restaurants, 2009).
While the fast food sector has experienced growth, parts of the full-service restaurant
sector, particularly fine dining establishments, are facing real challenges. This sub-
segment has most recently seen decreasing sales, a drop in transactions, and slowing
outlet growth due to economic difficulties which have caused many American consumers
to limit their discretionary spending on formal sit-down meals. According to a 2008
Nielsen study, 66% of fine dining and 52% of casual dining patrons are eating out less
often than in 2007. Furthermore, as consumer spending power decreased, the
foodservice industry continues to face rising ingredient and gas prices. Strong
competition from the fast food and quick/fast-casual sectors, which are better meeting
consumer desire for speed and convenience, is also negatively impacting the full-service
sector. In response to these threats, full-service operators are attempting to offer the
consumer better value, as well as more premium ingredients at an affordable price. This
sector is becoming increasingly focused on convenience, offering more take-away
options and attempting to reduce service time in order to be more competitive with the
fast food sector. Nonetheless, mid-scale restaurants and fine dining operators are seeing
declines in consumer traffic.
Asian full-service restaurants are one success story in the full-service sector, having
seen strong growth since 2000. In particular, Chinese and Japanese cuisines have been
gaining popularity among American consumers. PF Chang’s China Bistro Inc. and
Benihana’s have capitalized on this trend and are experiencing increasing sales and
outlet growth. These chains have presented unique, but not too exotic, Asian cuisine in
upscale environments. Likewise, European operators, which mostly serve Italian-
American cuisine, are also performing well. Pizza operators have achieved this strong
performance through a consumer perception of pizza being an affordable, convenient
and appetizing option (Euromonitor International, Fast Food, 2008 and Full-Service
Restaurants, 2009). In other full-service areas, particularly the “bar and grill” category,
lack of differentiation has led to difficulties. Well-known chains such as Chili’s Grill and

Bar, TGI Friday’s, Ruby Tuesday and Applebee’s have struggled and were forced to offer
promotions and increased value.
Self-Service Cafeterias
 Sales at self-service cafeterias decreased by 3% to US$1.7 billion in 2008
(Euromonitor International, Self-service Cafeterias, 2009).
 From 2002 to 2007, sales in this sector decreased 3.7%, with sales forecast to
decrease another 10% between 2007 and 2012 (Euromonitor International, Fast
Food, 2008).
 The number of self-service outlets also decreased by 2%, reaching 1,054 units in
2008 (Euromonitor International, Self-service Cafeterias, 2009).
 The self-service cafeteria sector is almost equally divided between chain and
independent operators at 49% and 51%, respectively (Euromonitor International,
Self-service Cafeterias, 2009).
 Top chain banners include Luby’s Cafeterias, Piccaddilly, and Furr’s.
Overall, the self-service cafeteria sector is declining, as its traditional consumer base of
ageing Americans is not replaced and fails to gain popularity with their grown children.
Chain self-service cafeterias traditionally offer southern-style recipes and attract
consumers based on flavours and large portion sizes. This value-conscious core
consumer group includes senior citizens and families. However, this dining concept has
limited awareness in the United States, outside of its core market which is in the Mid-
Atlantic and Southern states.
Although the self-service cafeteria sector is almost equally divided between chain and
independent operators, independent cafeterias have seen more success in recent years
due to their broader appeal and greater versatility. These independent self-service
cafeterias often serve semi-captive consumers in environments such as office buildings,
museums, hospitals and ski resorts.
Cafés
Despite economic difficulties in 2007, coffee specialist sales saw strong growth driven by
outlet expansion as well as the still limited household penetration of specialty coffees.
However, sales were flat in 2008 at US$20 billion. According to the National Coffee
Association, only 17% of adults in the United States consume gourmet coffee on a daily
basis. Although cafés have seen growth in sales and number of outlets in past years,
strong competition and a slowed American economy are expected to lead to decreased
sales, transactions and outlets.
“Other” cafés/bars led growth in 2008, with 6% value growth. Chain coffee shops,
dominated by Starbucks, have traditionally led sector growth but are now facing growing
problems due to economic difficulties and competition from fast food premium coffees.
Starbucks’ expansion during the last decade led to a transformation of the American
coffee culture. Previously, few Americans were familiar with espresso-based drinks or
specialty roasted coffee. However, Starbucks has noticeably been downsizing its
operations and has plans for a new value priced menu. Starbucks has been testing a
number of regional and national promotions to remain competitive and to attract value-
seeking consumers.
Fast food chains are increasingly entering the specialty coffee market. For instance
McDonald’s and Dunkin’ Donuts have both begun to offer a small selection of specialty
coffee products including iced and premium roast drip coffee. These product

introductions have been very successful and fast food operators are emerging as strong
competitors to specialty coffee outlets.
Food Stalls and Kiosks

 Sales at food stalls and kiosks grew by 4% in 2008, reaching US$10.9 billion
(Euromonitor International, Street stalls/Kiosks, 2009).
 The number of outlets also rose slightly, to over 40,109 units (Euromonitor
International, Street stalls/kiosks, 2009).
 This sector is not expected to see growth in the next few years, given rising food
prices and the trend toward increasing suburbanization in the United States.
However, the consumer trend of trading down foodservice purchases has aided
this inexpensive sector.
Food stalls and kiosks are found in cosmopolitan urban areas with high pedestrian
traffic. Hot dog and ice cream venders dominate this sector. Aside from these two core
items, food options available at stalls vary regionally. For instance, in areas with large
Mexican populations, taco stands are common; in New York, Middle Eastern foods are
often available. Sales and growth is limited by local and regional regulations concerning
these outlets, as well as many high-end retailers and restaurants who lobby against the
presence of food stalls. These factors make the street stall concept unattractive to chain
operators; therefore, this sector consists entirely of small independent owners.
Home Delivery and Take-Away

 Sales in the home delivery and take-away sector rose by 3% in 2008 to US$17.9
billion (Euromonitor International, 100% Home Delivery Take-Away, 2009).
 The number of outlets in the home delivery and take-away sector decreased
slightly, by 1%, comprising 30,619 outlets (Euromonitor International, 100%
Home Delivery Take-Away, 2009).
 Approximately 54% of American adults state they would use delivery services if
offered at tableservice restaurants.
 Twenty nine percent of adults say purchasing take-out is essential to their way of
life (National Restaurant Association, Pocket Factbook, 2010).
High commodity prices and economic uncertainty have led to challenges for this sector.
Pizza outlets are particularly vulnerable as prices are already low and pizza consumers
are very price-sensitive. As there is little differentiation between leading pizza chains,
price promotions are critical and can have a strong influence on consumer purchases.
Promotional activity in this sector has focused on discount coupons and promotional
items such as $5 pizzas. Large chain operators such as Pizza Hut and Papa John’s are
also attempting to effectively target consumers through Internet pizza ordering systems.
Pizza chains are also expanding their menus to stay competitive; wings, pasta, bread
and desserts are commonly found on pizza outlet menus. Furthermore, this sector is
facing competition from full-service restaurants which are increasingly focusing on take-
away sales, as well as supermarket purchases and at-home meal preparation.
The improving quality of frozen pizza and other meals available at lower prices from
grocery retailers is also a threat. According to the Food Marketing Institute (FMI), nearly
95% of all retail grocers now offer ready-made meals for time-constrained shoppers.
Fuelled by demand for quick meal solutions, the segment increased roughly 16% from
2002 to total more than US$23.1 billion in 2007 (Euromonitor International, Packaged
Food, 2008). Manufacturers are expected to continue to roll-out more restaurant-quality

ready-made meals and frozen pizzas to offer consumers quick, high-quality meal
solutions.
Domino’s Pizza leads the home delivery and take-away sector, and had an 18% market
share in 2008 (Euromonitor International, 100% Home Delivery Take-Away, 2009).
Other large chains in this segment include Papa John’s, Pizza Hut, and Little Caesar’s
Pizza.
Travel Industry
 The travel and leisure industry has seen slow growth in recent years. The
American domestic travel industry, which is more resilient to economic
fluctuations, has seen stronger growth than international travel.
 The United States was visited by 52.5 million international tourists in 2009, down
9% from the previous year. The majority were from Canada (17.2 million)
followed by Mexico (12 million) and the United Kingdom (4 million) (Euromonitor
International, Tourism Flows Inbound - USA, 2010).
 A recovery is expected in the coming years, with growth of 15% from 2009 to
2014, to reach 60.4 million visitors (Euromonitor International, Tourism Flows
Inbound - USA, 2010).
 In 2009, US$118 billion was spent on food by international travellers in the
United States (Euromonitor International, Tourism Flows Inbound - USA, 2010)
 Domestic travel expenditures declined in 2009 to US$549 billion, a 10% decrease
from 2008 (Euromonitor International, Tourism Flows Domestic - USA, 2010).
 The “Staycation” (staying at home during vacations) grew in popularity with
Americans (Euromonitor International, Tourism Flows Domestic - USA, 2010).
 California is the most popular travel destination in the country having accounted
for 12% of all domestic travel or 168.1 million trips in 2009 (Euromonitor
International, Tourism Flows Domestic - USA, 2010).
The travel and tourism industry provides a variety of opportunities for foodservice
providers; these include but are not limited to:
 Hotels and motels
 Cruise lines
 Onboard commercial transportation (e.g., aircraft, train, ship and coach)
 Airports, railways stations, ports and motorway service stations
With economic difficulties in the United States having an impact on consumer travel
choices, “staycations” as well as restrained business travel will likely remain popular.
However, a weaker dollar may lead to increased domestic travel in place of international
travel. Despite these changes in consumer behaviour, one area of growth in travel and
tourism-oriented foodservice is airport dining. Stricter travel regulations following the
events of September 11, 2001 have forced passengers to arrive at the airport earlier
creating opportunities for full-service restaurants. Additionally, financial difficulties
among airlines have resulted in more airlines charging for onboard meals, resulting in
increased demand for restaurant food at airports.
The airport dining segment has significant growth potential given that the United States
has the largest airline passenger market. HMS Host is a leading travel foodservice
provider, with 2,500 units in travel plazas and airports throughout the United States and
Canada. HMS Host is a franchisee for a number of leading brands including Starbucks,
Burger King and Chili’s Grill and Bar. Large restaurant chains are also increasingly
expanding their operations to offer meals for in-flight purchases.

Non-Commercial Foodservice Sector
The non-commercial foodservice sector serves specific and captive populations within
institutions, services or businesses and is usually unavailable to the general public.
National non-commercial foodservice sales totalled US$48 billion in 2008. The non-
commercial foodservice sector has shown slow growth as it continues to adjust to
changing food demands and stricter food regulations among other factors. Changing
customer eating habits have profoundly affected the non-commercial foodservice sector,
as employees demand that workplaces provide quick, healthy and fresh food choices.
Aramark Global Food and Support Services is the leading player in the American contract
catering industry. Non-commercial foodservice opportunities exist in a number of
sectors, including education, health, military and business dining.
Schools, Colleges and Universities

 Total food expenditure at schools and colleges was US$31.9 billion (including
food subsidies) or 5.7% of food away from home sales in 2007.
 Canadian agri-food exporters should note that all food products in American
schools (kindergarten through grade 12) must be domestically produced. The
United States Department of Agriculture (USDA) forbids foreign countries to
export food products to American schools.
Universities and colleges provide a growing opportunity in the United States foodservice
sector. Gone are the days of poor quality, generic cafeteria food. American colleges
have begun using their foodservice options as a marketing tool for students. The battle
for enrolment has pushed a makeover in the university foodservice sector, which has
resulted in easy options for alternative diets, high-end food choices, artisan food and
local specialties for students. Restaurant-style dining with multiple options is becoming
more common. This movement is a genuine effort to speak to both the culinary desires
of students and the nutritional desires of parents, all in the hope of giving a college or
university an edge in the selection process.
Foodservice providers to schools, colleges and universities are increasingly becoming

sensitive to demands as they realize the need to help curb the obesity epidemic. Other
trends in colleges and universities include demand for authentic ethnic food,
vegan/vegetarian food, healthy options, and organic, sustainable and locally-sourced
food. Campus convenience stores are also becoming "hybrid" operations that offer
partially prepared meals, while flexible lifestyle menus, a greater selection of foodservice
outlets on each campus, and more flexible meal plans are prevalent in educational
institutions.
Health Institutions
 Foodservice at health institutions includes service to hospitals and private clinics,
as well as residential care.
 Only one-in-five hospital foodservice providers are outsourced to private
companies, such as Sodexho USA and Aramark. The remaining are independent,
hospital-run operations.
 Sixty-eight per cent of meals at health institution foodservice outlets are served
to individuals other than patients, including employees and visitors.
 The aging baby boomer population has increased demand for quality healthcare
services, including foodservice. Buffet-style foodservice is now taking on more of
a bistro, quick and casual feel. Menus are offering a wider and more innovative
range of selections in an effort to increase patient satisfaction.

National Foodservice Trends and Opportunities
The story of the American foodservice market over the last 10 years has been one of
stability. Unfortunately, the current economic climate has impacted the foodservice
industry and a number of negative factors could seriously impact future sales and
growth. While the various regions of the United States are very unique submarkets,
there are national issues and trends which have impacted individual regions to a similar
degree. On the positive side, there are new areas of expansion which have created
opportunities that will at least maintain, if not increase, business.
Overall, consumer traffic is weak. Issues such as rising gasoline prices and a sense of
overall economic uncertainty have led to declines in the purchase and consumption of
meals outside of the home. Not only are consumers eating and preparing meals at home
more frequently, they are also trading down in the foodservice expenditures that they do
make. The industry itself has been impacted by an overall increase in food prices which
have not had a positive effect on a consumer market that is being bombarded daily by
news of rising fuel costs, a mortgage crisis and an unstable stock market. Regardless of
the level of knowledge or interest in issues of the day, these trends are influencing
consumer purchasing behaviour; further price increases will only compound this effect.
Although the foodservice industry is facing the most serious impacts from consumer-
level economic issues, on a national scale it is also experiencing some sector-specific
issues that will frame business in coming years. First and most importantly, American
restaurant visits have peaked. Over the past 10 years the number of meals purchased at
foodservice outlets has levelled off. From 1998 through 2007, average per capita
restaurant purchases remained constant. Given the current economic climate, this figure
will most likely not increase in the foreseeable future. In fact, a recent survey has
reported that as many as 75% of Americans believe they will eat out less, while 50%
believe they will cook more at home, and 55% believe they will buy fewer prepared
meals. How have these shifts in consumer habits affected the foodservice sector? Fast
food sales growth, the leader and traditional driver of growth in the overall sector,
slowed dramatically in 2007, but did experience moderate-slight growth in 2008. Sales
at mid-scale and fine dining restaurants have also shown declines.
Since 2003 (long before the American economic slowdown and the impact of higher fuel
and food prices), consumers have been cooking and preparing more food from scratch at
home, as well as eating-in more. This return to a home-cooked or at least a home-
prepared and -consumed meal has been an ongoing trend for a number of years. In
many cases this trend could be tied at least in part to the longer-term healthier eating
trend, as well as an increase in competition from food retailers who continue to offer
options for prepared meals, innovative meal components, partial meals and even semi-
prepared meals. It would also be difficult to ignore the recent conservative movement
promoting issues like family values, as well as the impact these beliefs have on the long-
held idea of the traditional sit-down family meal. The reason for the trend toward
greater meal consumption at home could also be as simple as increasingly busy
lifestyles having finally pushed consumers to want to spend more time in their home.
Regardless of these factors, Americans are consuming more dinner meals at home, and
more consumers are “brown-bagging” their lunch, particularly women, which has hurt
the foodservice industry at all levels. In fact, brown-bagged weekday lunches from home
increased to 38 per capita in 2007 from 35 a year earlier, the equivalent of 8.5 billion
bagged lunches annually for American adults (The NPD Group, 2008). According to NPD
Group, the majority of American consumers (93%) cite saving money as the largest

driver for doing so. Although there are a number of factors which have pushed this
trend, the economic downturn clearly compounded the growing trend of “eating more at
home” amongst American consumers.
Current Trends and Reactions

While overall restaurant sales seem to be stable, there are dynamic shifts in the industry
influencing what people purchase from foodservice outlets, when they purchase these
goods, and where they consume them. Meals eaten inside a restaurant have fallen in the
last 10 years and now make up less than half of total restaurant meals. Americans are
also cooking more, and even when they do not cook they typically go out to eat less.
Foodservice retailers have attempted to capitalize on this trend by introducing ready
meals “to go” through take out windows, drive-thrus, and quick or side pickup kiosks at
traditional sit down establishments. “Picking something up on the way home” seems to
be a consumer trend that many restaurants are catering to, as 47% of American adults
claim they would use curbside take out if offered at tableservice restaurants.
Higher-priced menu items are facing challenges at the fast food level, but there is also a
movement to replace socially unpopular larger serving products with gourmet style food
and beverages. Restaurants are increasing their discount offerings, the so-called 99
cents menus, while “free” seems to be the new discount, e.g., a free coffee or dessert
with each purchase. Increasing food prices have even resulted in some companies
reducing packaging or serving sizes to maintain price points, while more family-style
entrées capable of feeding more people are also expected. Providing value to customers
is a key trend for both quickservice and casual-dining operators for 2010.
Another trend gaining momentum is the prevalence of fast food chains with a
recognizable chef or brand attached to a single product or an entire menu. This type of
marketing has been dubbed “cheap chic” as an exclusive chef or product is used to
promote a low-priced fast food item.
Health and Wellness

As the number of Americans with health problems and/or a general concern for living a
healthy lifestyle grows, dietetic, better-for-you, fresh, and high-quality products are
projected to see strong growth. In fact, 73% of adults say they are trying to eat more
healthily at restaurants than they were two years ago (National Restaurant Association,
Pocket Factbook, 2010). Foodservice operators continue to offer more healthy options
including portion-controlled meals and items with reduced fat, sugar and salt content to
meet such demand. Restaurant owners are also shifting their starchy menus to leaner,
protein-based dishes. Demand for vegetables, chicken, meat, fish, antipasto meat,
cheese and olive oil continues to increase rapidly as people attempt to improve and
maintain healthy, low-carbohydrate diets. Chefs are crafting more "light" meals and
meatless entrées made with an increasing array of exotic ingredients now available in
the American marketplace.
Opportunities in the health and wellness category include but are not limited to:
 Introducing healthier alternatives and nutritionally balanced meals for children’s
menus
 Demonstrating food safety on product packaging and in food outlets
 Offering consumers information they can use to make informed shopping
decisions on portion size, nutritional value, caloric intake, balanced diets, and
smart cooking techniques

 Offering fresh, natural, organic and wellness products in retail outlets and
restaurants
 Developing smaller portion sizes as well as healthy finger foods, such as sushi
and tapas.
Although, the trend toward healthy eating in the United States is significant, it fails to
offset the popularity of many less healthy options. As much as healthy eating is a trend
amongst the average consumer, the effort to eat healthier could easily be described as
casual, with healthy eating choices being incorporated into less than healthy diets. While
dieting consumers are huge targets, this is not a growing segment of the population,
and in fact, the percentage of adults on a diet in the United States has decreased
significantly since 1990. Spurred by the economic downturn, there has also been a
growing demand for comfort foods. Growth can be seen in products targeting specific
“hot button” consumer issues, e.g., increasing concern over the health risks associated
with trans fats in food.
Increasing obesity rates within the United States may indicate that demand for super-
sized products is growing. The national obesity rate increased to 26.6% in 2009 from
16.5% in 1997. However, obesity rates are slightly lower in the Pacific Northwest region
(25.8%) than nationally, which may suggest stronger regional demand for fresh and
healthier products. All states in the Pacific Northwest region ranked within the top 30
states with the lowest obesity rates: Oregon 12th, Idaho 13th, Washington 23rd, and
Alaska 29th (United Health Foundation, 2009).
Organics
Fuelled largely by consumer demand for more natural, minimally-processed and
pesticide-free food in North America, the American organic sector has seen dramatic
growth in recent years and is now one of fastest-growing segments of American
agriculture. Consumer awareness and demand for organic food and beverages has also
greatly increased since the USDA Organic standards logo and certification program was
introduced in 2002. Restaurants have responded by expanding the number of organic
ingredients used. Results from the 2010 National Restaurant Association’s chef survey
indicate the growing presence of organic produce, coffee and alcoholic beverages in
restaurants.
Ethnic Cuisine
Due to increased ethnic diversity and global travel in recent years, the North American
ethnic food sector has moved out of the specialty food category and into the mainstream
food industry. In fact, 75% of ethnic food consumption in the United States is now
supported by the mainstream population (Euromonitor International, 2006). Research
has also shown that the majority of ethnic food and beverages are consumed by
Caucasian consumers in the United States, and are purchased largely by mainstream
shoppers and those of other minority groups (Datamonitor, 2005).
Ethnic food restaurants are growing in popularity, with the National Restaurant
Association’s survey naming ethnic cuisines and flavours on of the hot menu trends in
2010. Recent trends have resulted in an increasing consumer base for Asian, Hispanic,
Caribbean, Mediterranean, Indian, Halal and Kosher food. Regional ethnic and fusion
cuisines are expected to be particularly popular in restaurants in 2010. Asian fast food,
quick/fast-casual and full-service restaurant chains have been an area of strong growth
in the foodservice industry in the past few years, with chains such as Panda Express,
Noodles & Company, PF Chang’s China Bistro and Benihana expanding rapidly.

While consumer demand for healthier food and exotic flavours is driving interest in these
areas, rising immigration levels are also playing a key role. The United States is
expected to see a visible minority population of 123.1 million (i.e., roughly one in three
Americans) by 2020, a 30% increase over the country’s 2006 population of 94.4 million.
The majority of this increase (i.e., roughly 59%) is expected to be driven by Hispanics,
followed by African Americans (i.e., 23%) and Asian Americans (i.e., 18%).
At-Home Meal Solutions

The American ready-made meal market has seen considerable growth over the past few
years, as consumers increasingly lead busier lifestyles. The home meal replacement
market has become a battle ground between restaurants and food retailers as they both
try to serve the needs of time-pressed diners. Restaurant quality is the new trend in at-
home meals. Chef or restaurant-branded products imply credibility. Consumers continue
to look for ingredients and home meal replacements to replicate the experience of dining
out. Families are the most time-conscious consumers and need ways to alleviate time-
pressured stress. This is driving growth in the take out food market; more than 73% of
sales at fast food restaurants were take out orders in 2008 (Euromonitor International,
Fast Food, 2009).
Opportunities in the at-home meal solutions market include but are not limited to:
 Offering quick-and-easy take home meals
 Preparing easy-to-carry "car food"
 Offering premium meal ingredients for at-home consumption
Green Foodservice Establishments

The green trend currently sweeping North America is also starting to impact the
foodservice industry. Consumers are increasingly looking for foodservice establishments
with greener operations, and foodservice operators are responding by developing energy
efficient outlets and switching to eco-friendly and even compostable take out packaging.
According to the National Restaurant Association, 56% of Americans say they are more
likely to go to a restaurant that offers food that is grown or raised in a way that is
organic or environmentally friendly. Furthermore, 70% of adults say they are more likely
to frequent a restaurant that provides food which is locally produced. This trend may
grow to offer foodservice operators unique marketing opportunities in the future.
Other Popular Trends

According to results from the National Restaurant Association’s chef survey, the
following items are expected to be the top ten “hot” trends in 2010:
 Locally grown produce
 Locally sourced meats and seafood
 Sustainability
 Bite-size/mini desserts
 Locally-produced wine and beer
 Nutritionally balanced children’s dishes
 Half-portions/smaller portion for a smaller price
 Farm/estate-branded ingredients
 Gluten-free/food allergy conscious
 Sustainable seafood

Future Trends and Opportunities
With a future that seems to point to stability at best where do the opportunities in the
foodservice sector lie? First, two growing trends with significant room for further growth
are take-away breakfasts and eat-in snacks. Secondly, beverages are a growing trend in
the eat-in and take out segments, and they are also being rolled into the rapidly-
expanding snacks category. Third, as restaurants continue to implement various
strategies to differentiate their businesses from competitors’, late-night dining options
are becoming increasingly common. Value and convenience remain key attributes with
consumers, even as the economy begins to recover. However, there is also demand for
more menu options and diversity.
Breakfast
Breakfast consumption in the United States has been growing since 2001. There are a
number of contributors to this, but one important tie-in with trends in food consumption
as a whole is the necessity of breakfast for a healthy diet. Eating breakfast has been
pushed by producers and medical people alike as a key component of a healthy diet,
vital in weight loss and important for child development. Regardless of what people are
eating, more are eating breakfast. The sector as a whole is seeing sales of restaurant-
purchased breakfasts grow, and while eat-in breakfasts are stable, take-out breakfasts
have been growing steadily since 2001. Eating on-the-go, in a car or on a bus, has also
increased the popularity of the breakfast sandwich.
Foodservice sales currently represent 10% of all breakfasts consumed in the United
States. The excitement in this segment is due to the fact that 11% of Americans still
skip breakfast. In other words, more Americans skip breakfast than eat breakfast in a
foodservice outlet, representing huge potential for growth. With the increasing trend
toward consumers actually eating breakfast, the industry is excited about capturing
some of this untapped market.
Breakfast away from home has shown strong popularity among Hispanic consumers, a
key and growing demographic in the United States. Nearly 23% of this consumer group
states that it often eats breakfast away from home on weekdays, which is significantly
above the national average of 14%. Take-out breakfasts are particularly popular, with
roughly 29% of Hispanic breakfast buyers stating they always or often eat breakfast in a
car. McDonald’s national introduction of the McSkillet Burrito is an attempt to attract
this demographic and recognition of the large growth potential for both breakfast meals
and the Hispanic food market.
Breakfast sandwiches and other hand-held food products are driving growth in the
breakfast market. Breakfast sandwich bread preferences also vary by region (e.g.,
biscuits are most popular in the south), but bagels, English muffins and other breads are
all experiencing positive growth. The most popular breakfast sandwich toppings in the
United States are bacon and sausage. Ham and multiple meats are declining in
popularity, while preference for steak and chicken is increasing quickly, although they
account for a very small portion of sector sales. Burgers are also increasingly being
eaten as a morning meal. The smallest category in the breakfast sandwich segment is
meatless sandwiches, which is not showing significant growth.
Snacking
Since 2005, one of the bright spots in the foodservice industry has been the healthy
growth in snacking and snacking occasions, which has led many restaurants to introduce
menu items targeting this trend. With the increased presence of smaller portions,

portable products and lower-priced goods on their menus, many fast food restaurants
have focused on offering snacks to boost sales. Eat-in restaurants have introduced mini
portions and samplers to address this growing trend. For instance, items such as mini
burgers (also known as sliders) are an increasingly popular menu item at restaurants.
While spending habits demonstrate that Americans generally eat throughout the day,
their key snacking points revolve around 10 a.m., 3 p.m. and 8 p.m.
In the eyes of the industry, one key growth point in the snacking segment is beverages,
such as specialty coffee or smoothies. These high-dollar and -calorie items have become
a very popular consumer choice during key snack periods. Beverage sales are an
important part of the snacking trend, but also an increasingly important part of an
overall in-restaurant dining experience. Beverage sales have been growing steadily in
spite of an overall decline in add-on restaurant sales. While sales of appetizers, salads
and other extras continue to fall, beverage sales, particularly non-traditional beverages,
are experiencing significant growth. Tea, specialty coffee, juice and bottle water are the
leading products for growth. Iced tea is especially popular and coffee sales are growing,
driven by demand for specialty coffee.
Late-Night Offerings
Restaurant chains looking for ways to differentiate are beginning to focus marketing
efforts on late-night diners. Burger King has extended its hours to 2 a.m. Thursday to
Saturday in the United States and has launched a television campaign focused on these
diners. Buffalo Wild Wings, Wendy’s, Denny’s and Taco Bell are also exploring late-night
marketing. Taco Bell currently has an online promotion for a late-night meal described
as the “Fourthmeal”, while, Denny's has recently added four new items to its menu
which are served only from 10 p.m. to 5 a.m. Late-night marketing strategies are
generally targeted toward 18- to 30-year-old consumers.
Key Target Markets
Ethnic Consumers
The world’s largest ethnic food market is expected to see its ethnic consumer base
continue to grow. Ethnic consumers are forecast to account for 52% of the American
population by 2050 or 219.7 million consumers, an impressive 78% increase over the
country’s estimated 2020 population. These trends are, in turn, creating new and
increasingly attractive opportunities for Canadian agri-food producers and exporters.
Distinct foodservice trends exist in each region of the United States. Age, race and
income demographics vary from state to state and impact regional flavour profiles. While
the Pacific Northwest possesses Hispanic and African American population ratios below
that of the national average, the region’s American Indian and Alaska Native, and Asian
American consumers represent a larger portion of the region’s population than that of
the national average. The following table outlines the Pacific Northwest region’s ethnic
consumer markets’ respective importance to Canadian food exporters.

Pacific Northwest United States Ethnic Populations, 2007
American Ethnic
African Asian
Hispanic Indian & Ethnic Population as
State/Region American American
Population Alaska Native Population** % of Nation’s
Population* Population
Population Population
Alaska 0.037 million 0.025 million 0.031 million 0.091 million 0.184 million 0.1%
Idaho 0.139 million 0.009 million 0.017 million 0.017 million 0.182 million 0.1%
Oregon 0.376 million 0.064 million 0.131 million 0.062 million 0.633 million 0.2%
Washington 0.583 million 0.217 million 0.419 million 0.090 million 1.309 million 0.4%
Pacific Northwest 1.135 million 0.315 million 0.598 million 0.260 million 2.308 million 0.8%
United States 44.02 million 36.97 million 12.95 million 2.37 million 96.31 million 32.2%
Source: U.S. Census Bureau, 2007
*To conserve space, African American, refers to Black or African American.
**The total ethnic population is an estimate based on the total American Indian and Alaska Native, Hispanic,
African American and Asian American populations. Some overlap may exist between the populations in each of
these groups. This total does not include ethnic consumers from other groups.
A brief overview of major ethnic consumer markets in the United States is provided
below. For more in-depth information, please consult the United States Ethnic Food
Market report on the Agri-Food Trade Service Web Site at www.ats.agr.gc.ca/amr/4489-
eng.htm.
The American Indian and Alaska Native Consumer

The Pacific Northwest region’s large American Indian and Alaska Native population
(representing 2.1% of the region’s population) sets it apart from other American
markets. At nearly three times the national average (0.8% of the population), the ratio
of American Indian and Alaska Natives in the region does have a considerable effect on
the sales volumes and spending patterns in various markets in the area. With an
American Indian and Alaska Native population comprising 13.4% of Alaska’s population,
the state is definitely the driver of these demographics in the region. However, Idaho,
Oregon and Washington all possess American Indian and Alaska Native population ratio’s
greater than the national average. However, this population segment actually decreased
in Alaska, Idaho and Washington from 2000 to 2007. On the other hand, Oregon’s
population experienced considerable growth of 37.8% in this same time period (U.S.
Census Bureau, 2007). Both the American Indian and Alaska Native consumer segment
in the Pacific Northwest states and the region’s well-known Native-inspired cuisine,
present a significant market opportunity for Canadian exporters.
Hispanic Consumers
The Hispanic consumer segment is the largest ethnic group in the United States, making
up nearly 15% of the population or 45.5 million consumers in 2007. By 2030, it is
projected that this segment will account for one out of every five Americans, with an
estimated 73 million Hispanics living in the United States. The Pacific Northwest’s
Hispanic population of more 1.1 million accounts for 9.2% of the total population. This
population segment has been experiencing strong growth in the Pacific Northwest,
increasing 34.3% from 2000 to 2007. All of the Pacific Northwest states have
experienced considerable growth, with Washington registering the slowest growth of
31.9%, and Alaska the highest at 42.3%. However, Washington does possess an
increasingly diverse population, with a noticeable and growing Hispanic consumer
segment.
Apart from the United States’ close proximity to Mexico, a recent influx of Hispanic
consumers in non-traditional Hispanic markets, such as Utah, has been aided greatly by
friendly municipal and state governments seeking key consumer groups to boost local
populations and economies. Hispanic buying power is expected to reach US$1 trillion in

2008, nearly doubling from US$581 billion in 2002, to achieve the highest level among
ethnic groups in the United States. Roughly US$55 billion of this total is allocated to food
annually.
Hispanic families tend to be larger than the national household average; Hispanic
households have an average 3.34 residents, while that of the general American
population is 2.57 persons. Furthermore, more than 43% of Hispanic homes have four
or more people residing in them, versus 22% of non-Hispanic households. Wal-Mart
recently announced a partnership with Pollo Campero, the largest Latin American
chicken restaurant chain, to attract more Hispanic consumers to Wal-Mart stores.
Roughly 500 Pollo Campero restaurants are forecast to open in the United States by
2012, some of which will be located within Wal-Mart outlets.
African American Consumers

Apart from the growing Hispanic market, the country’s African American population is
also an attractive consumer segment. Estimated at US$847 billion, the African American
consumer market’s level of purchasing power is the second-highest among ethnic groups
in the United States. This value has seen a compound annual growth rate (CAGR) of
almost 6% since its 2002 value of US$645 billion. African Americans comprised almost
13% of the American population or 38.7 million consumers in 2007, an 8% increase
over the 2000 population of 35.8 million. By 2030, it is projected that this segment will
account for 14% of Americans, with an estimated 50.4 million African Americans living in
the United States.
The African American population in the Pacific Northwest has also been growing. The
population increased 15.4% from 2000 to 2007, totalling a population of approximately
0.3 million and accounting for 2.6% of the region’s population in 2007. While the
majority of states (Alaska, Oregon and Washington) experienced growth of
approximately 14%, Idaho had remarkable growth of 80% in its African American
population (U.S. Census Bureau, 2007).
Asian American Consumers

In addition to the country’s largest ethnic consumer groups, there is strong emphasis on
addressing the needs of the expanding Asian American population. Currently estimated
at 13.3 million consumers or nearly 4.5% of the population, this consumer segment is
projected to become the fastest-growing ethnic group in the United States from 2010 to
2050, and see a 135% population increase over the period. Asian Americans possess the
highest median household income of US$69,047, compared to US$56,648 for
Caucasians, US$41,630 for Latinos, and US$35,085 for African Americans. The national
median household income is US$52,175 (GoldSea, 2010). While being the fastest-
growing population segment, Asian Americans’ buying power is quickly increasing.
After the Hispanic consumer group, the Pacific Northwest’s Asian American consumers
represent the second largest ethnic population in the region, totalling approximately 0.6
million consumers in 2007. The Asian American population accounted for 4.9% of the
total Pacific Northwest population, slightly higher than the national percentage of the
Asian American population (4.3%). As a result, there is strong emphasis on addressing
the needs of the region’s expanding Asian population, which increased a noticeable 30%
from 2000 to 2007. The Asian American population increased significantly in all Pacific
Northwest states from 2000 to 2007, with Alaska experiencing the lowest growth of
24%, followed by Oregon and Washington at approximately 30% each, and Idaho’s
population growing 41.7% (U.S. Census Bureau, 2007). Washington’s population

includes a significant Asian population, particularly in the western region of the state
where there are a number of businesses that cater to Asian consumers (The Shelby
Report of the West, June 2008).
Halal and Kosher Food Markets

The large and growing Muslim and Jewish consumer populations in the United States
also present considerable opportunity for Canadian food manufacturers looking to enter
new markets. With its population of 8 million to 11 million Muslim consumers, the United
States offers a lucrative halal market estimated at US$12 billion. The kosher food
industry, while not new to North America, also continues to grow with an approximate
6.15 million Jewish consumer base in addition to a number of non-Jewish consumers
that are increasingly buying kosher products for numerous reasons, and comprise the
fastest growing consumer base for kosher products. Halal and Kosher restaurants exist
throughout the United States and contract foodservice is increasingly offering halal and
kosher options. For instance, Delta Air Lines offers halal and kosher options on select
flights to the Middle East.
Furthermore, as consumers continue to become more health conscious, especially in the

wake of recent worldwide food scares and the burgeoning green movement, halal and
kosher food is gaining popularity (i.e., meat and other food products slaughtered or
processed according to Islamic and Jewish law). Such food is appealing to a growing
number of consumers outside of the Muslim and Jewish communities, whether it be due
to humane animal treatment concerns, demand for vegetarian or lactose-free products
(i.e., kosher food only), or a perception that such products are healthier or safer.
Mediterranean Food Market

Mediterranean food (i.e., particularly Greek, southern Italian and
Spanish), cited as a major emerging ethnic cuisine in the North
American marketplace, gained huge popularity in 2007. The
consumer trend toward wholesome, boldly-flavoured ethnic food
has grown considerably in recent years, largely due to
Mediterranean cuisine having been marketed as a healthy diet
option in the United States since 1993. A Mediterranean diet
symbol for packaged food was released in the United States in April
2007 and has helped further drive the popularity of this cuisine.
Competitive Environment
Canada has long been the number one exporter of live animals, meat, grain mill
products, bakery goods and fats and oils to the United States. This has given Canadian
agri-food exporters a distinct advantage over international competitors in the United
States. Western Canada’s geographic proximity to the Pacific Northwest also provides an
advantage to Canadian agri-food exporters, over other international competitors.
However, Canadian agri-food exporters also face competition from small to medium-
sized local and national food manufacturers that operate on a regional level, as well as
large multinational manufacturers such as Danone and Nestlé.
The top countries exporting agri-food and seafood products into the United States
include Canada (19.5% import share), Mexico (14.2%), China (5.5%), Thailand (3.7%),
France (3.6%), and Italy (3.5%). The main exports originating from these countries are
as follows:

 Mexico: edible vegetables; beverages, spirits and vinegar; edible fruit and nuts;
sugar and sugar confectionery; prepared vegetables, fruit and nuts.
 China: fish and crustaceans; prepared vegetables; fruit and nuts; prepared meat
and fish; products of animal origin; edible vegetables.
 Thailand: prepared meat and fish; fish and crustaceans; prepared vegetables,
fruit and nuts; cereals; miscellaneous preparations.
 France: beverages, spirits and vinegar; dairy produce, birds’ eggs, and natural
honey; lac, gums and resins; miscellaneous preparations; cocoa and cocoa
preparations.
 Italy: beverages, spirits and vinegar; animal and vegetable fats and oils;
preparations of cereals, flour, starch or milk; dairy produce, birds’ eggs, and
natural honey; miscellaneous edible preparations.
Market Access
The United States remains a destination of constant trade and investment interest for
foreign investors, and holds strong potential for Canadian companies wanting to enter
the export market. To facilitate successful market entry, Canadian exporters are
encouraged to develop market entry strategies that include working with local brokers,
importers and distributors to develop a presence, gain valuable market advice, and best
position products to meet local tastes, laws and pricing.
Canadian exporters should contact the Canadian Consulate General offices in the Pacific
Northwest region to obtain market information, identify new markets, find qualified
trade contacts, and obtain assistance in successfully exporting abroad. Detailed
information on customs procedures, documentation, tariffs and labelling requirements
can also be found on the Trade Commissioner Service Web site at
www.infoexport.gc.ca/ie-en/USMissions.jsp.
Food Distribution
The majority of exporters (75% to 80%) choose to ship their product directly to the
retailer’s warehouse. The advantage of this channel is expediency over shipping to
distributors/wholesalers without the excessive transportation and labour costs of
shipping directly to the store.
The Pacific Northwest is home to some of the largest food distributors in North America.
To arrange distribution in the Pacific Northwest, the manufacturer has three options at
their disposal: manufacturer direct to the food outlet; manufacturer to merchant
wholesaler, to food outlet; or manufacturer to distributor, to retailer, to food outlet.
However, many food products are sold through food brokers and distributors. With the
consolidation trend occurring in the industry in Canada and the United States, the
number of channel partners has become increasingly amalgamated along the supply
chain, at manufacturing, representation, distribution, and retail levels (Foreign Affairs
and International Trade, 2007).
Sysco, with sales of US$28 billion, is the largest food distributor in the United States.
Sysco Corporation possesses broadline companies in Washington, Oregon, and Idaho.
Other substantial broadline distributors serving the Pacific Northwest region include U.S.

Foodservice (with a distribution facility in Seattle, Washington), McLane (distribution
center in Lakewood, Washington), DPI Northwest (headquarters in Tualatin, Oregon),
Food Services of America (distribution centres in all Pacific Northwest states, with
headquarters in Seattle, Washington), Ocean Beauty Seafoods, Pacific Seafood Group
(processing plants along the coast and distribution facilities in Oregon and Washington),
Unified Western Grocers (serving Alaska, Oregon, and Washington), Western Family
Foods (headquarters in Tigard, Oregon) and United Natural Foods (two distribution
centres in Washington).
The Consulate General of Canada, Seattle

1501 4th Ave, Suite 600
Seattle, Washington,
98101-4328, United States of America
Tel: (206) 443-1777

Fax: (206) 443-9735
E-mail: seatl-td@international.gc.ca
Web Page Address (URL): www.seattle.gc.ca
Territories: Washington, Alaska, Idaho, Oregon
Hours: Mon-Fri: 08:30-16:30

Time Difference E.S.T.: -3
Mr. Doug McCracken

Trade Commissioner
Agriculture, Food and Beverages, Consumer Products, Fish and Seafood Products
Email: clients.seattle@international.gc.ca
Consulate of Canada in Anchorage

A satellite of the Consulate General of Canada in Seattle.
310 K Street, Suite 200

Anchorage, AK 99501
United States of America
Tel: 907-264-6734
Fax: 907-264-6713
E-mail: seatl-cs@international.gc.ca
Web Page Address (URL): www.anchorage.gc.ca
Hours: Mon-Fri: 08:30-16:30 (Alaska time)
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from Euromonitor International online database.
Euromonitor International. (2009, July 13). Recovery Watch: Tangible signs of improvement across major
economies. Euromonitor International. Retrieved July 15, 2009 from Euromonitor International online
database.
Euromonitor International (2009, August). Self-service Cafeterias - USA. Retrieved May 2010 from

Euromonitor International (2008, July and 2009, August). Street Stalls/kiosks - US. Retrieved May 2010 from
Export Development Canada (EDC). (2008). Regional Markets of the United States: A Guide for Canadian
Exporters. http://www.edc.ca/english/publications_11752.htm
Ferguson, Mike. (2008, May 15,). Idaho Division of Financial Management. Idaho Economic Outlook. Pacific
Northwest Regional Economic Conference. Retrieved June 3, 2009 from the World Wide Web:
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- Seattle, WA, - United States. Retrieved June 3, 2009 from the World Wide Web:
http://www.sea.agr.gc.ca/amr/4525-eng.htm
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Restaurant News. Vol. 42, no. 24, pg. 16.
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Business. Retrieved May 2010 from the World Wide Web: http://goldsea.com/Text/index.php?id=3913
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http://www.canadainternational.gc.ca/washington/commerce_can/2008/index.aspx?lang=eng
Hume, Scott (2008, March 1). Breakfast’s Best Bet. Restaurants and Institutions. Vol. 118, Issue 3, p.69.
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News. Vol. 42, no. 25, p. 1.
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2009 from the World Wide Web:
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Lukovitz, K. (2008, July 29). Bagged lunches adding to restaurant slowdown. MediaPost Publications. Retrieved
August 26, 2008 from the World Wide Web:
http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=87472
Martín, A. (2008, February). The undiscovered country: If you’re looking for growth, you’d better be looking
multicultural. Progressive Grocer, p. 70.
National Center for Chronic Disease Prevention and Health Promotion. (2007). Prevalence Data - Weight
classification by Body Mass Index. Retrieved July 23, 2008 from the World Wide Web:
http://apps.nccd.cdc.gov/brfss/page.asp?yr=2007&state=UB&cat=OB#OB
National Restaurant Association (2008, December 19). Restaurant Industry Expected to Post Modest Sales
Growth in 2009 as it Copes with the Weakest Economy in Decades. Retrieved December 23, 2009 from
the World Wide Web: http://www.restaurant.org/pressroom/pressrelease.cfm?ID=1725
National Restaurant Association. (2009). Restaurant Industry Facts at a Glance. Retrieved December 23, 3009
from the World Wide Web: http://www.restaurant.org/research/ind_glance.cfm
National Restaurant Association. (2007, September). Restaurant Industry State Statistics. Retrieved July 29,
2008 from the World Wide Web: http://www.restaurant.org/research/state/index.cfm
National Restaurant Association (2009). Chef Survey: What’s Hot in 2010. Retrieved December 23, 2009 from
the World Wide Web: http://www.restaurant.org/pdfs/research/whats_hot_2010.pdf
Pacific Northwest Economic Region. (2007). Retrieved June 10, 2009 from the World Wide Web:
http://www.pnwer.org/
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Web: http://www.pnreap.org/
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Retrieved April 27, 2009 from the World Wide Web: http://www.forbes.com/2008/01/30/economy-
cities-alabama-biz-cx_bw_0130econcities.html

Potiowsky, Tom. (2008, May 15). Oregon’s Economic Outlook. Pacific Northwest Regional Economic
Conference. Office of Economic Analysis. Retrieved June 3, 2009 from the World Wide Web:
http://www.pnreap.org/workshops/PNREC_2008/presentations/Oregon_Outlook.ppt
Restaurants and Institutions. (2009, December 16). Franchise Businesses to See Slow Growth in 2010.
Retrieved December 23, 2009 from the World Wide Web:
http://www.rimag.com/article/ca6711979.html
Restaurants and Institutions. (2009, December 14). Research: Restaurants Not on the Brink of Recovery Yet.
Retrieved December 23, 2009 from the World Wide Web:
http://www.rimag.com/article/CA6711492.html
Restaurant Business. (2010, April). The Best Places to Open a Restaurant: Where to Scout in 2010 and
Beyond. Retrieved May 3, 2010 from the World Wide Web: http://blog.nielsen.com/nielsenwire/wp-
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out of recession. From The Economist print edition. Retrieved December 23, 2009 from the World Wide
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Overview of the Foodservice Market in the

Pacific Northwest United States

Ben Berry – ben.berry@agr.gc.ca

Overview of the Foodservice Market in the Pacific Northwest United States 2

Overview of the Foodservice Market in the Pacific Northwest United States 3

 National restaurant sales are expected to reach US$580 billion in 2010,

Overview of the Foodservice Market in the Pacific Northwest United States 4

Due to the proximity of Western Canada to the Pacific Northwest, numerous

Population and Food Consumption Trends

Overview of the Foodservice Market in the Pacific Northwest United States 5

In today’s Pacific Northwest region there is no longer a homogeneous consumer market

Overview of the Foodservice Market in the Pacific Northwest United States 6

Opportunities and Challenges

While competition from national and international competitors may be reduced,

Overview of the Foodservice Market in the Pacific Northwest United States 7

State Economies and Canadian Trade

Overview of the Foodservice Market in the Pacific Northwest United States 8

Pacific Northwest Region - Importance to Canadian Agri-Food Exporters

Overview of the Foodservice Market in the Pacific Northwest United States 9

Overview of the Foodservice Market in the Pacific Northwest United States 10

Overview of the Foodservice Market in the Pacific Northwest United States 11

Overview of the Foodservice Market in the Pacific Northwest United States 12

Key Metropolitan Areas

Overview of the Foodservice Market in the Pacific Northwest United States 13

Boise City-Nampa, Idaho

The Foodservice Sector

Overview of the Foodservice Market in the Pacific Northwest United States 14

Commercial Foodservice Sector

Overview of the Foodservice Market in the Pacific Northwest United States 15

United States - Leading Foodservice Chain

Hamburgers, a perennial favourite in the United States, continue to remain extremely

Overview of the Foodservice Market in the Pacific Northwest United States 16

Trends within the quick/fast-casual sector include:

Overview of the Foodservice Market in the Pacific Northwest United States 17

Overview of the Foodservice Market in the Pacific Northwest United States 18

Overview of the Foodservice Market in the Pacific Northwest United States 19

Food Stalls and Kiosks

Home Delivery and Take-Away

Overview of the Foodservice Market in the Pacific Northwest United States 20

Overview of the Foodservice Market in the Pacific Northwest United States 21

Schools, Colleges and Universities

Foodservice providers to schools, colleges and universities are increasingly becoming

Overview of the Foodservice Market in the Pacific Northwest United States 22

Overview of the Foodservice Market in the Pacific Northwest United States 23

Current Trends and Reactions

Health and Wellness

Overview of the Foodservice Market in the Pacific Northwest United States 24

Overview of the Foodservice Market in the Pacific Northwest United States 25

At-Home Meal Solutions

Green Foodservice Establishments

Other Popular Trends

Overview of the Foodservice Market in the Pacific Northwest United States 26

Overview of the Foodservice Market in the Pacific Northwest United States 27

Key Target Markets

Overview of the Foodservice Market in the Pacific Northwest United States 28

The American Indian and Alaska Native Consumer

Overview of the Foodservice Market in the Pacific Northwest United States 29

African American Consumers

Asian American Consumers

Overview of the Foodservice Market in the Pacific Northwest United States 30

Halal and Kosher Food Markets

Furthermore, as consumers continue to become more health conscious, especially in the