The education segment of the foodservice industry is comprised of K-12 schools as well as colleges and universities. The total size of the education foodservice market in terms of retail sales equivalent (RSE) was $23.9 billion in 2020, making up 28% of the total noncommercial sales in 2020. K-12 schools make up a slightly larger share, accounting for 56% of total operator retail sales within the education segment.

The education segment felt the impact of the pandemic as most K-12 schools and colleges/universities held virtual classes during 2020. As students return to classrooms, the education segment is expected to surpass pre-pandemic sales reaching $45.3 billion by 2025. Compound annual growth rate for the education segment will reach 13.7% between 2020 and 2025. 

K-12 Schools

  • Growth experience sharp decline due to pandemic (41.9%)
  • Growth expected to rebound as in-person learning resumes, settling at 2.6% in 2025
  • Dining services are primarily self-operated; only 20% of equipment purchases are contract-managed
  • Key Segment Trends
    • ​Facing rising costs and looking for support in increasing student participation in school foodservice programs, which ultimately helps bring in more income. 
    • Due to student demand, operators are attempting to incorporate customizable and build-your-own service formats. 
    • Government regulations and nutritional guidelines have been dynamic and often cause confusion for operators; most initiatives revolve around responding to these challenges. 
    • Demand for sustainable practices is increasing, and operators are working to respond despite budget constraints. 
  • ​Key Decision-Makers
    • ​Foodservice Directors - Run the foodservice operations and tend to have strong input into the types of equipment necessary for that school. 
    • School Procurement - Might be involved in negotiations and final approval, depending on the setup of the operation.  
    • Chefs - Often don't make the final decision, but play a secondary role as influencers. 
    • ​Design Consultants - Schools often defer to design consultants on brand and equipment specifications on new builds and major remodels. 
  • Role of Equipment Within Segment
    • Specialized equipment, such as steam-cooking equipment, can help manage issues around nutrition. 
    • Operations often struggle with kitchen footprint and outdated equipment; may prefer compact and multifunctional equipment. 
    • Some schools are introducing new vending programs and grab-and-go kiosks to provide greater variety and increase speed of service. 

    College & University

      • $10.6 billion RSE in 2020, a $5.8 billion decrease from 2015
      • Total operator RSE projected to increase to $20.4 billion by 2025. 
      • Growth rate is stronger relative to K-12 segment
      • Majority contract-managed (57%)
        • Key Segment Trends
          • Trendsetting schools focused on innovation in off-premise offerings, including ghost kitchens. 
          • Combating waste through menu changes and composting programs has become a focus. 
        • ​Key Decision-Makers​
          • Same key decision makers as K-12 schools
        • Role of Equipment Within Segment
          • Convenient and accessible grab-and-go display units may help boost sales.
          • Build-you-own stations are likely to appeal to students seeking variety. 
          • Specialized equipment, such as chip warming cabinets, may help meet student demands for more global fare. 
          • Equipment facilitating preconsumption composting, such as pulpers, may help meet sustainability​ efforts. ​