Community Food Services


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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 10.2% of American households were food insecure at least some time during the year in 2021, meaning they lacked access to enough food for an active, healthy life for all household members.
                                  Industry Forecast
                                  Community Food Services Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Jul 16, 2024 - Labor Costs Increase
                                  • Community food service industry employment and wages for nonsupervisory employees increased slightly during the first five months of 2024, according to the US Bureau of Labor Statistics. Personal income, an indicator of demand for community food services, increased 4.69% year over year and 0.51% month over month in March, according to the Bureau of Economic Analysis. Demand for community food services is likely to decrease as personal income increases.
                                  • The phasing out of COVID-19 assistance like stimulus checks and temporary food stamp programs has increased reliance on food banks, according to the Center on Budget and Policy Priorities. Inflation has added to the strain. The cost of groceries typically increases about 2.5% each year, according to the US Department of Agriculture (USDA). Grocery prices increased 11.4% in 2022 and another 5% in 2023, according to the USDA.
                                  • Stock market gains, growth in personal income, and higher net worth are expected to result in a 4.2% increase in charitable giving in 2024 and another 3.9% increase in 2025, according to the Indiana University Lilly Family School of Philanthropy. The projected increase is greater than the average growth rate of giving since 2005, and is expected to surpass 10-year, 25-year, and 40-year annualized growth averages. The average rate of growth for giving from 2005 to 2014 — a period covering the 2007-08 financial crisis and subsequent recession — was 1%. The average growth rate from 2015 to 2024 is expected to have been 1.9%.
                                  • The formal US volunteering rate (volunteer activities within an organizational context) dropped seven percentage points—from 30% in 2019 to 23% in 2021, according to AmeriCorps. It was the largest change since AmeriCorps and the US Census began collecting this data in 2002. Utah; Wyoming; Minnesota; Maine; and Washington, DC had the highest formal volunteering rates in 2021. Community food services that rely heavily on volunteers are likely to be negatively impacted.
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