WASHINGTON, February 27, 2020 /PRNewswire/ — Today, the National Restaurant Association released its State of the Restaurant Industry Report 2020 which examines key factors impacting the restaurant industry, including the current state of the economy, operations, workforce, and food and menu trends across all segments, from quick service to fine dining. The report is an authoritative look at the industry, its challenges and opportunities, based on a series of national surveys of restaurant owners, operators, chefs and consumers.
Key findings regarding economic conditions include:
- Restaurant industry sales set to hit record high $899 billion in 2020, with a moderate growth rate of 4% reflecting general economic conditions.
- Consumers will continue to drive the economy, buoyed by a healthy labor market and strong household balance sheets.
- Pent-up consumer demand remains high, with nearly half of adults saying they want to use restaurants more frequently.
“Now in its eleventh consecutive year of growth, the restaurant industry is adapting faster than ever to consumer preferences,” said Hudson Riehle, Senior Vice President, Research and Knowledge Group, National Restaurant Association. “Consumers tell us they want to use restaurants more than they currently do, and the challenge for the industry is to meet consumers where they want to be. site, technology that streamlines operations, and more restaurants talking about their sustainable and eco-friendly practices.”
Opportunity Lies Offsite
Offsite will be a significant growth force in 2020. To be successful, restaurateurs will seek to find the perfect mix of on and offsite for their business as consumers seek convenience but continue to turn to social escapism. what the restaurants offer. When asked about ways restaurants could incorporate more technology, consumers mostly cite friction-free items, improving convenience and service, rather than people-eliminating items. Other key points to remember about operations include:
- Restaurant owners are generally positive about economic conditions, but anticipate continued challenges that impact both bottom line and bottom line.
- Off-premises will be a major driver of sales growth in 2020 and beyond, and many restaurateurs are devoting more resources to this side of their business.
- Restaurant owners agree that the use of technology provides a competitive advantage and as such invest in customer-facing technologies that will improve service and convenience for their customers.
Job opportunities abound
The restaurant industry remains one of the largest employers in the economy – for a year or for a career. Sixty-three percent of adults report having worked in the restaurant industry at some point in their lives; 48% had their first regular job in a restaurant. Recruiting and retaining employees continues to be a major challenge for operators in 2020, with low unemployment rates and growing job openings. However, of the vacancies filled in 2019, almost half were filled either by new entrants to the job market or by people promoted from other positions in the same restaurant. Other key stats on the state of the workforce include:
- More jobs: The restaurant industry will provide approximately 15.6 million restaurant and food service jobs in 2020.
- Good jobs: The restaurant workforce is as diverse as the communities it serves, and the industry will provide additional employment opportunities at all levels of the business this year.
- Opportunity for all: Representation of older people in the restaurant workforce will continue to grow, as their numbers in the workforce are expected to rise sharply.
Healthy and sustainable options increase as alcohol preferences change
Consumer interest in healthy menu options will remain strong in 2020, and consumers will make decisions based on the availability of healthy offerings. Alcohol is a key driver of sales in the gastronomy segment, with nearly two-thirds of orders including alcoholic beverages. In 2020, alcohol will expand even further beyond this segment, with operators in all but one category planning to increase their alcoholic beverage offerings to keep up with changing consumer tastes and preferences. Key figures on food and drink trends include:
- 76% of adults say they are more likely to visit a restaurant that offers local food and 79% of adults say they are more likely to visit a restaurant that offers healthy menu options.
- 65% of millennials say they are more likely to go to restaurants that offer locally sourced alcoholic beverages.
- 53% of chefs say low-alcohol beers and cocktails will continue to grow in popularity in 2020.
“Consumers are embracing the industry more as they continue to shift their spending from physical items to experiences. This opens up channels of opportunity and growth in food, beverage and technology. We’re excited to see how these trends and developments will materialize in 2020 and beyond,” Riehle said.
Goes here for more information or to access the full report.
About the National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading trade association for the restaurant industry, comprising more than one million food and beverage outlets and a workforce of 15.6 million employees. We represent the industry in washington d.c., and plead on his behalf. We host the largest trade show in the industry (National Restaurant Association Show May 16-19, 2020in Chicago); leading food safety training and certification program (ServSafe); unique high school career development program (ProStart from NRAEF). For more information, visit Restaurant.org and find us on Twitter@WeRRestaurants, Facebook and Youtube.
SOURCE National Restaurant Association