6 Restaurant Trends and What They Mean
(number 4 is essential)

According to The National Restaurant Association, the foodservice industry is on target to reach $1 Trillion dollars in sales this year. And when asked what stands out in the industry, here’s what they had to say (and what HotOperator recommends for taking advantage of those trends).

But before we get to that. Keep in mind, a strong message became clear: People want human contact when dinning out. You know, people helping people. So, take note before you try to tighten staff with computers.

The Key findings:   

1. Sales are up: The foodservice industry is forecast to reach $1 trillion in sales in 2024.

Is this sales in more people going out to eat? Nope. It’s mostly higher prices. To offset this, make sure you are mental anchoring your restaurant menu. Have comparative prices that show the guest just how little they are spending.

2. Restaurants are hiring: The industry workforce is projected to grow by 200,000 jobs, for total industry employment of 15.7M by the end of 2024. 45% of operators need more employees to meet customer demand.

Which is great. But it also offers another problem. Many operators are struggling to find workers (and keep them). A strong brand marketing campaign will help your restaurant stay top-of-mind. And that makes your restaurant more attractive to employees along with consumers.

3. Competition is strong: In 2024, 45% of operators expect competition to be more intense than last year.

This is difficult for most independent operators. Chain restaurants are taking a larger and larger portion of the market. To combat this, independent operators will need to use guerrilla marketing programs to stay in front of chains moving into their market. Try things like local bonuses. Special menu items that only local guests know about. And treat guests like royalty. 

4. Costs are up: 98% of operators say higher labor costs are an issue for their restaurant. 97% cite higher food costs. 38% say their restaurants were not profitable last year.

This points to a lack of marketing which puts stress on any restaurant. Simply put, a weak brand will not push their value up in the eyes of local guests. Our recommendation? Do a brand analysis along with a menu matrix to find out what your guests really think of your business. Every day you have a focus group going on in your restaurant. People are voting for your business with their pocket books and their feet. They are telling you if they like your business, and they are telling you what they like most about dinning with you (and what they don’t like)

But don’t do this on your own. You need an objective view. You need an expert to look at your business and offer advice. It might be painful, but it is necessary.

5. Consumers are value conscious: Nearly half of consumers are taking a wait-and-see stance when it comes to spending. Operators who offer a solid value proposition for dining out can nudge customers out of their holding pattern.

This is not a deep thinking thing to say. That’s because consumers are always value conscious. Where most people make a mistake is thinking that value conscious is all about price. But it’s not just about price. It’s about price and function together. A product can have a higher price only if you offer reasons that will support that higher price. Most operators get this wrong in their business and never think to support each item with the proper description and highlight.

6. Consumers love restaurants: 9 in 10 adults say they enjoy going to restaurants. Restaurants allow them to enjoy a favorite meal that has flavor and taste sensations they can’t easily replicate at home.

So it’s not all bad news. Of course people want to eat out. It’s fun. In fact, it’s a mini vacation. So, you need to nurture those feelings with your guests. That means you have to train your staff on how to work with guests so they make better choices when they order from you. And how to get your servers to leave their own struggles at the door when they come to work.

If you’re looking for help to build a better brand in your restaurant, give Mark a call. He’s an expert in restaurant branding, menu development, social media and content development. He’s been doing this stuff for nearly 4 decades, and has worked with more than 200 restaurants across the country. This gives him a unique ability to learn from other independent operators what’s working and what isn’t.

Hey, the first 15 minutes are free. To take advantage, call 800-316-3198 and leave a message. Mark will get back to you.