Tighter consumer spending, rising food inflation and staff recruitment difficulties are the biggest factors expected to constrain growth for foodservice companies post-Brexit.
That's according to the latest Food Service Management report, published by UKHospitality in partnership with Bidfood.
Almost two-thirds (64%) of companies polled said that reduced consumer spending is a concern, while more than half (55%) are worried about rising food costs, and 45% are worried about their ability to hire workers following Britain's withdrawal from the EU.
But the report also highlighted a number of potential opportunities for growth, led by demand for healthy eating and sustainable food sourcing.
More than 90% of FSM clients consider health and nutrition to be an important or critically important issue, while more than 90% of businesses surveyed had a workforce that was more than 50% female.
Kate Nicholls, chief executive of UKHospitality, commented: "The food service management sector is a crucial element of the UK's hospitality industry. The sector is buzzing with dynamic and talented leaders and we are very pleased to represent them.
"This report underlines the importance and vibrancy of the sector as well as the opportunities and challenges it faces.
"FSM businesses, like their high street cousins, innovate and provide much-needed investment around the UK. They are no less important than our pub, bar and hotel sectors, and UKHospitality will be using this report to ensure they are supported by Government."
Sarah Whiddett head of insight and customer experience at Bidfood commented "We are very much heartened this year to read of a foodservice industry which is in a strong and resilient state of health.
"The report highlights that there are key trends working in our favour and opportunities for us all work closer together to secure growth and further development for our sector."