How are Public Sector Purchases Affecting the Food Service Industry?
Reading this over will possibly make you hungry. No doubt, as we put it together, the gastric juices were flowing. Across the United States, we have detected an increase in solicitations and contracts for food service, products, equipment, and related needs.
For many of those in the food service industry, regardless of the part they play in contributing to meals prepared outside of the home, these are changing, bustling and lucrative times. Customer expectations are shifting, distribution pathways are seemingly limitless and advancements in technology and equipment have transformed the food service landscape.
Public sector demands have also had an impact on the industry. Upon review of the BidPrime database, as of this report, there are currently 204 bid requests, specific to the keyword: “food service”. Over the past year, there have been well beyond 1,000 requests very specific to this “food service” industry.
With scant end in sight, refrigerators comprise a substantial majority of capital invested in kitchen equipment. As predicted by P&S Market Research in June 2017, the refrigeration industry is primed for dramatic growth, “The global industrial refrigeration systems market reached a value of $25.7 billion in 2016, growing at a moderate pace, and it is expected to grow by over 1.5 folds between 2016 and 2023.”
Of course, U.S. public sector purchases will have an effect on this prosperity. Already in the past year alone, we have pinpointed 1,022 requests for food service refrigeration solutions and 544 for various types of freezers.
Speaking of food service equipment, there are a number of manufacturers selling in the U.S. and a variety of solutions available for acquisition. Right on cue, U.S. public sector agencies have spent the past year submitting 494 bids for broadly inclusive “kitchen equipment”, along with 458 ovens, 311 dishwashers, 254 sink systems, and 198 grills.
Of course, there exists a demand for delivery of food stuffs to customers. Correspondingly, food distribution services and support are needed as well. Primarily driven by needs of state and local government agencies, there have been 72 agency requests over the past year for “food distribution”.
Of course, the provision of food service isn’t limited to management, delivery, equipment, uniforms, etc… Schools, agencies, corrections facilities, and a broad list of other public sector entities are in need of actual food items. Along with the following requests involving the broad term categories noted, there are 100’s of requests for specific food and drink items. Yep, there are even specific requests for gluten-free and kosher food items. Mazel Tov!
Over the past 365 days:
“Meat” (to include beef, poultry, fish)
725 bid requests/RFPs. 82 active in the past 30 days.
“Vegetables”
528 bid requests/RFPs. 47 active in the past 30 days.
“Fruit”
360 bid requests/RFPs. 24 active in the past 30 days.
“Beverages”
617 bid requests/RFPs. 64 active in the past 30 days.
Note: To gauge the solicitation activity for a specific food/beverage item, search at Bidprime.com.
As the 677 requests over the past year would suggest, government-related agencies are also procuring vending-related equipment, services and solutions. Similar to food distribution services, a significant majority of vending bid requests/RFPs are emerging from state and local levels. With the rise in intelligent vending machines, it’s simple to predict that the public sector will be interlaced in that space, as well.
Our analysts will continue to observe the request and acquisition activity across the industry, while compiling and distributing the solicitations in real-time.
For more information government-related bid requests / RFPs for food service products, equipment, services, and solutions, contact us at 888.808.5356 or visit BidPrime.