Though many of the news reports are about our economy’s downturn and inflation costs, a new report from the National Restaurant Association has good news for the restaurant industry: restaurants are healthy and, industrywide, project to show improvement and growth in 2023.
Though it seems that the pandemic has seemingly ended, businesses are still feeling the effects of pandemic-related regulations and decline. Restaurants have spent 2022 and 2023 regaining ground, maintaining a full staff, and reaching for pre-pandemic sales numbers. To start the 2023 State of the Restaurant Industry Report, the Restaurant Association found that “3 in 4 operators say business conditions are already close to normal—a new, more positive normal—or are well on the path.”
With this steadying in restaurant businesses, restaurant owner-operators are turning their attention to actual growth in 2023, and the report shows that the industry is on-track to do so. That begins with sales, which at this time are forecasted to reach $997B in sales in 2023, driven in part by higher menu prices. While raising menu prices requires grace and finesse with customers, slight increases and menu design adjustments can make a huge difference in revenue. This is important as the same report does note that inflation and increased food costs are not only an issue for customers, but for owner-operators as well. “92% of operators say the cost of food is a significant issue for their restaurant,” the report states. Our restaurant consultants are experts in menu engineering and design and can help your business see these improvements with even only a few tweaks to your menu.
Despite rising costs and financial adjustments, the industry is bustling again with a heated market. The Restaurant Association report found that 47% of operators expect competition to be more intense than last year and are positioning themselves competitively with new ideas in food, aesthetics and customer interaction. One thing that has been nearly restored to pre-pandemic levels: dining out. 84% of consumers say going out to a restaurant with family and friends is a better use of their leisure time than cooking and cleaning up, the Restaurant Association report found, and so restaurant owner-operators can expect near pre-pandemic regular traffic through their establishments for the rest of this year.
“While the industry forecast appears to be positive, operators must continue to manage their businesses from the sidewalk in,” notes Richard Weil, owner and principal of National Restaurant Consultants. “While consumers want to return to normal, competition and looking at your business through the eyes of your customers is paramount for continued sustainable growth and success.”
The National Restaurant Association offers the complete 2023 State of the Restaurant Industry report for review online. This research is helpful to restaurant owner-operators of both established restaurants and new projects, allowing leadership to prepare for industry conditions in the coming year. Our restaurant consultants are well-versed in this report and active with the Restaurant Association so that we can help you be leaders in the industry.