IPA SBRB Study: Food Service Companies
Cautiously Optimistic About Economy, But
Most Still Looking for Revenue Increases
Costs for
health care and taxes along with expenses
for energy and
fuel considered leading concerns.
Buffalo
Grove, IL (Grassroots Newswire)
January 09, 2007 -- Small and medium-sized
food service companies are cautiously
optimistic about their prospects for the
coming months and are the least confident
about the near term than any other industry
segment measured, according to the results
of an International Profit Associates
Small Business Research Board (IPA SBRB)
survey released here today.
The
IPA SBRB Food Service Industry Confidence
Index was established at 38.8 for the
first IPA SBRB food service industry poll.
By contrast, the aggregated IPA SBRB Small
Business Confidence Index (SBCI) for all
small and medium-size businesses participating
in the survey was 42.7. The confidence
index for other industries included the
transportation sector at 45.7, the manufacturing
sector at 43.2 and the construction and
contracting sector at 42.04.
The
IPA SBRB has been tracking the attitudes
of small businesses since July 2004. In
2006, the IPA SBRB began issuing reports
for specialized industries, the first
two of which measured the attitudes of
construction and contracting companies
and manufacturing firms. This was the
first time that the food service and transportation
industries were individually studied.
The key ingredients for determining the
confidence index are attitudes about the
direction of the economy, revenue predictions
and hiring plans.
Additional
industries will be added during 2007.
The
level of optimism in the food service
category was defined by the 36% who believe
the economy is improving, the 41.6% who
are not forecasting a change, and the
22.4% who believe the economy is worsening.
As a result, 50.3% of the respondents
believe their revenues will increase through
next winter. The report showed that 17.2%
believe their business will grow by up
to 10% and another 33.1% that are expecting
revenues to grow by more than 10%.
Slightly
more than 36% of the respondents believe
their revenue will remain the same for
most of 2007 while 13.4% are projecting
lower revenues.
In
addition, 30% of the food service category
respondents predict they will increase
hiring during the same period. The report
indicated that about 40% will try to sustain
the current workforce level with about
9% looking to decrease hiring and 21%
uncertain about their plans.
Health care expenses and taxes were the
top two leading concerns among the food
service companies. Energy and fuel costs,
concern about the general economy and
the cost for materials rounded out the
top five.
Like
nearly every other segment, increased
revenues are the priority for 2007, followed
by plans to decrease expenses and improvements
in productivity which tied for second.
Facilities improvements was fourth.
"The
success of food service operations demands
that owners and managers do more than
just keep a keen eye on presentation and
taste. It is imperative that they focus
on maintaining control on those costs
that they have a direct ability to influence,"
said Gregg Steinberg, President of International
Profit Associates, the largest privately-held
provider of management consulting and
professional services to small and medium-size
businesses in North America.
"Food
service industry operators will be much
more satisfied with the longevity of their
businesses and the flavor of their efforts
if they both have controls in place and
use them to keep a strict grip on daily
food and beverage costs," Steinberg
added.
The
International Profit Associates Small
Business Research Board ascertains and
reports the opinions of small business
owners and managers on a wide variety
of topics related to their own businesses
as well as national and international
issues that may impact their operations.
Participants
in the poll provide feedback on significant
issues and allow for real-time insight
into the state of small businesses nationwide.
The universe of participants is developed
from among small businesses across the
United States. More than 550 small business
owners and senior managers participated
in this IPA SBRB poll. The IPA SBRB study
is a voluntary survey conducted via phone
and email. The poll was structured and
supervised through an independent resource.
The
latest information about the IPA Small
Business Research Board can be found at
www.ipasbrb.com.
Comprehensive details about the study
can be found at www.ipasbrb.com
or at www.biznus.net.
International
Profit Associates, Inc. (IPA) is the largest
privately-held provider of management
consulting services to small and medium-size
businesses in North America. IPA and its
more than 1,800 professionals offer a
wide range of proven and innovative methodologies
to help businesses grow and prosper regardless
of the economic cycle. IPA either provides
directly or through its affiliated companies
a comprehensive array of business advisory
services, tax and estate planning services
or merger, acquisition and other financial
advisory services in the United States
and Canada.
More
information about IPA can be found at
www.ipa-iba.com.