RubinBrown Food & Beverage Mid-Year Review 2014

Current Economic Indicators

Highlights • Consumer confidence continued its post-recession surge and finished the first half of 2014 at a post- recession high, which coincided with similar improvement in disposable income levels. • PCE per capita on food declined during the first half of 2014, although this trend appears to be seasonal with similar declines seen during the first halves of most of the last several years following the Great Recession as illustrated on the previous page. • Consumer spending on dining out continues to increase, with expenditures on dining out increasing from 45.9% to 49.5% of total food expenditures over the last decade. Over the same period, the split between full service and fast food restaurants has remained relatively unchanged.

Consumer Confidence Index

Food Sales by Outlet

60 65 70 75 80 85 50 55

Other Away fromHome 11.1%

Fast Food Restaurants 17.8%

At Home 50.5%

Full Service Restaurants 20.6%

Source: The Conference Board

Source: USDA Economic Research Service

Di

bl P sposa e ersona ncome Per Capita l I

P

l C ti ersona onsump on xpen ures Per Capita on Food E dit

$2,570

$37,200 $37,400 $37,600 $37,800 $35,800 $36,000 $36,200 $36,400 $36,600 $36,800 $37,000

$2,565

$2,560

$2,555

$2,550

$2,545

$2,540

$2,535

$2,530

$2,525

Source: U.S. Bureau of Economic Analysis (BEA)

Source: U.S. Bureau of Economic Analysis (BEA)

Food & Beverage Sector: 2014 Mid-Year Update

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