Community Food Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,800 community food services in the US collect, prepare, and deliver food for the needy. They include food banks, meal delivery programs, and soup kitchens. Food banks collect and distribute salvageable or donated food to individuals through other social service organizations. Meal delivery programs prepare and deliver meals to persons unable to prepare meals for themselves due to age, disability or illness. Soup kitchens prepare and serve meals at fixed or mobile locations.
Demand and Donations Dependent on Economic Conditions
Demand for community food services rises when the economy is weak and unemployment rises.
Dependence on Volunteers
Community food services are highly dependent on volunteers for many staff positions and for carrying out their work.
Industry size & Structure
The average community food service operates 1 or 2 locations, has 11-12 employees, and generates $4-5 million in annual revenue.
- There are about 3,800 community food service organizations in the US employing 48,000 workers and generating $18.2 billion in annual revenue.
- Nearly all community food services focus on the needs of a local market. However, they may belong to regional or national networks of food banks.
- The largest national food bank network is Feeding America, with over 200 members.
- In addition to dedicated community food service organizations, the US also has tens of thousands of food pantries operated by churches and other religious organizations to deliver food staples to the needy.
- An estimated 13.5% of American households were food insecure at least some time during the year in 2023, meaning they lacked access to enough food for an active, healthy life for all household members.
Industry Forecast
Community Food Services Industry Growth
Recent Developments
Mar 12, 2025 - Trump Administration Freezes Food Aid
- The US Department of Agriculture (USDA) announced plans to end two federal programs that provided more than $1 billion in funding for schools and food banks to purchase food from local farms. The Trump administration suggested that the cuts were made as part of a Department of Government Efficiency-led effort to reduce spending in the federal government, according to The Independent. The USDA notified states that it was unfreezing funds for existing agreements for the Local Food Purchase Assistance Cooperative Agreement Program, which provides food to food banks and organizations that reach underserved communities, but did not plan to carry out a second round of funding for fiscal year 2025, according to Politico. An estimated $420 million of federal funds were expected to go toward the program in 2025, the USDA website shows.
- Demand at food banks remains high as there has been little financial relief like rental assistance and additional Supplemental Nutritional Assistance Program checks since the end of pandemic-era programs, according to Erin Kelly, director of the Greater Pittsburgh Community Food Bank (GPCFB). The GPCFB distributed more food from July 2023 thorugh June 2024 than ever before. Food prices are beginning to stabilize after historic inflation but families are still paying high grocery bills with no real end in sight, Kelly said.
- Food assistance can provide a lifeline to vulnerable communities during heat emergencies, according to nonprofit media organization Grist. Heat can compound the challenges of getting outside, getting groceries, and cooking for older adults living with disabilities or mobility issues, for example. Delivering meals during bouts of extreme weather, including heat waves, can serve as a line of defense against the worst impacts. Home meal deliveries are also a way to check in on older adults during heat emergencies.
- Community food service industry employment peaked in mid-2024 and average wages for nonsupervisory employees increased slightly during the first nine months of 2024, according to the US Bureau of Labor Statistics. Personal income, an indicator of demand for community food services, increased 4.48% year over year and 0.21% month over month in June, according to the Bureau of Economic Analysis. Demand for community food services is likely to decrease as personal income increases.
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