THE Philippine food services industry is projected to grow 12% next year as store networks and foot traffic expand, according to the US Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS).

“Reaching pre-pandemic levels in 2025, FAS Manila sees continued food service sales growth at 12% with the expansion of stores and customer queues in restaurants,” the USDA said in a report.

It added that more customers are dining out due to the opening of new restaurants, cafés, kiosks, and bars, as more franchise international restaurants enter the Philippines.

Increased tourism and the resumption of public events are also expected to bolster the recovery in food services.

The USDA said that sales in full-service restaurants are expected to grow 10% next year due to store expansion. Full-service restaurants account for 17% of the industry.

“As restaurant chains expand, new stores will open in other cities and rural areas through expansion and investment from franchisors,” it added.

Café and bar sales are estimated to expand 15%, also driven by new outlets.

The USDA said street stall and kiosk sales are expected to rise 12% next year as consumer mobility continues to improve.

“With increased consumer mobility in 2024, FAS Manila sees further sales growth in 2025 due to the convenience provided by street stalls and kiosks to commuters amidst increased traffic,” it added.

The USDA said that the growing number of international brands opening in the Philippines presents an opportunity for the entry of US products. — Adrian H. Halili