Leading Food Business Insurer Releases Second Annual Analysis of Market Trends and Statistics of the Food-Related Small-business Industry
NEW YORK, NY - January 23, 2025 (NEWMEDIAWIRE) - Food Liability Insurance Program (FLIP), a national insurance program designed for small to mid-sized operators in the food industry, released today its second annual “Food & Beverage Industry Economic Trends Report,” which includes proprietary insurance statistics from the previous year, insights from both consumers and SMBs operating in the food industry, and general economic and consumer trends. The report includes a market-wide analysis of out-of-home food businesses, excluding restaurants and grocers, and segment-specific insights into bakers, mobile bartenders, caterers, event-based businesses such as food truck and farmers market vendors, personal chefs, and home (cottage) food businesses. Segments of the report are below, and the entire report can be accessed online here.
“We are proud to release our second annual Food & Beverage Industry Economic Trends Report showing a strong and resilient industry headed into 2025,” said Daryle Stafford, CEO of Veracity Insurance, parent company to FLIP. “With a notable decrease in claims and a significant percentage of business owners reporting growth in 2024 while expecting further growth in 2025, it’s clear that the food industry continues to thrive following a period of significant challenges such as food and labor costs. FLIP remains committed to acting as a partner to these businesses with the specialized insurance solutions and the resources they need to succeed in an ever-evolving market.”
Insurance Statistics
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An analysis of insurance claims processed in 2024 compared to 2023 shows a 4.4% decrease in claims. The most prevalent claim type in 2024 was Accidents Causing Damage, which represented 31% of all claims, an increase of 73% over 2023. The following three claim types were claims involving an Auto or Trailer (24%), Theft (12%), and Food Spoilage (11%).
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The average payout for all claims filed was $3,385
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California, Texas, and Florida represented the highest concentrations of claims throughout the United States
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61% of all claims filed resulted in a payout
Food Business Owners Insights and Predictions
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Growth:
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52% of food businesses indicated that their businesses grew in 2024 over the previous year and 79% of business owners believe that growth will happen again in 2025
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In terms of footprint, operators were divided on whether they plan to physically expand in 2025, with 35% noting that it would depend on economic success
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Costs & Inflation:
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60% of food businesses reported that higher food costs affected their business’ profitability while 27% noted they were able to adjust prices to compensate for the costs. Looking to the future, about half of businesses predict that ticket prices will continue to go up while the other half predict that they will remain level in 2025.
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When predicting challenges in 2025, 42% of food business owners believe rising costs will continue to be their top challenge in 2025; however, 54% believe that labor costs will remain the same as they were in 2024.
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41% of food businesses are targeting more than 10% average profit margins in 2025 with 36% targeting 4%-10%
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Marketing and Consumer Trends:
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Business owners indicated that they are planning to stick with their menus heading into 2025, with 54% indicating they had no intention of changing theirs
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Food businesses seem torn on adding more dietary-specific menu options (e.g., vegan, gluten-free) with 54% reporting they continue to see an increase in requests for this and 45% reporting they are not
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Marketing is still a major focus for operators, as 31% reported that attracting and retaining customers will be their largest challenge in 2025 and 97% are still considering changing their advertising spend in the new year
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Food business owners are not sold on artificial intelligence use in their operations, with 43% indicating they will not be adopting any AI tools into their business and 36% being unsure, while only 13% are already leveraging the tool
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Diner Insights:
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60% of diners indicated that they eat out on a weekly basis and an additional 22% reported dining out 2-3 times per month
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70% of diners said they are willing to spend between $11 and $30 when dining out with 25% willing to pay over $31
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Customers noted that Quality of Food and Price are the most important factors when choosing where to eat
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Diners continue to choose electronic payments over cash with 80% favoring cashless payment options such as credit cards and mobile payments
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Surprisingly, 36% of diners are willing to travel 10-20 miles for an out-of-home dining experience with an additional 29% willing to travel 20+ miles for a unique dining experience
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Customization of menu items was revealed to be important in the eyes of diners, with 90% indicating that being able to customize their order was very or somewhat important
All data sources can be found in the 2024 Food Industry Economic and Trend Outlook Report prepared by FLIP.
For the complete report, please visit: https://www.fliprogram.com/food-and-beverage-industry-trends
About Veracity Insurance (Parent Company of FLIP)
Veracity Insurance is recognized for providing exclusive programs with in-house underwriting and binding authority, working alongside A-rated carriers. We pride ourselves on offering fast turnaround times for our retail agents and specialize in a wide range of insurance solutions, including Product Liability, Program Management, General Liability, and Surplus Lines Filing.
Discover the future of workers' compensation insurance with FLIP by Veracity Insurance. Simplify your coverage, protect your business, and experience unmatched convenience today.
Media Contact
Kyle Porter, Virgo PR
veracity@virgo-pr.com
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