New York WaterMaker will be competing in the $799 billion restaurant industry, up 4.3% YoY, as part of a growing subsection focused on restaurant and foodservice equipment.
The restaurant and food service equipment industry depends heavily on the capital expenditures of restaurant operators. Over the past five years, rising disposable incomes prompted greater consumer spending on luxuries such as restaurants, travel, and entertainment.
As people gained confidence in their finances and spending, restaurants finally had the extra funds to invest in new equipment.
The global food service equipment market is expected to witness steady growth over 2016-2024, at a CAGR of 5.2%. The market revenues, valued at US$ 27.69 billion in 2015, will spike up to US$ 42.92 billion by 2024 end.
While many traditional restaurants have struggled since 2008, the overall industry has seen strong growth of more than 4.5% annually from 2010-2017 with many new restaurants and food concepts taking the place of stagnant players that failed to adapt to the changing consumer demand.
Market’s Appreciation for Water
- While once viewed as a costly capital expenditure, water systems are now viewed as a long-term cost savings as they extend equipment life, reduce soda syrup costs, provide better tasting food and drinks, ensure sanitary water conditions, and reduce the number of service calls needed for equipment maintenance.
- Current solutions in the market consist of water softeners coupled with individual filtration systems that require frequent maintenance, quarterly replacements, and are needed at each individual water source.
- A growing wave of chefs are now demanding high-quality water, sometimes from specific locations, to enhance food and beverage quality.
- Due to the unique hardness, pH, and chemical composition of the water used in a recipe, it can affect the taste of the finished product and its consistency.
Demand for NYC Water
- New York water has a unique composition and taste profile that is viewed as the gold standard in cooking
- All throughout the United States, there are restaurants and individuals who are importing NYC water or buying bagels from NYC and flying them back to their hometown because the taste could not be replicated.
- NYC water is currently the most sought after and highest regarded water for cooking in the world and restaurant owners and consumers have an ever-increasing demand for replicating the authentic NYC style food and beverage quality without having to travel.
Take for example Famous Famiglia’s, who recently opened a location in Accra, Ghana and is flying in 100 gallons of NYC water each week in order to make more than 1,000 pizzas with as accurate a NYC taste as possible. According to one of the owners of Famous Famiglia, “New York City water has a very unique chemical composition and taste to it. I’m a purist. I wouldn’t want to do anything less than the original.”