US restaurant and foodservice sales will finally exceed the 2019 level

US consumers are spending more on high-end hotels and restaurants, according to the American Express first-quarter report (Demos, 2022). Reservations in the company’s Resy restaurant-booking service jumped 16% from February, making March the busiest month ever for Resy.

The NRA projected sales at $898B in 2022.

The National Restaurant Association (NRA) released the 2022 State of the Restaurant Industry report earlier (Ruggless, 2022). NRA projected that total restaurant and foodservice sales would reach $898 billion, slightly exceeding the $864 billion level in 2019. In 2020 and 2021, the industry reported annual sales at $678 billion and $799 billion, respectively. Although, after adjusting the inflation, foodservice sales in 2022 would still remain 11% below the pre-pandemic level, such a growth shows a very healthy trajectory for the industry.

The pandemic has substantially changed restaurant operations.

The 2022 State of the Restaurant Industry report (NRA, 2022) also highlighted some noteworthy trends regarding operations, food & menu, and the workforce. For example,

About 50% of operators believe outdoor dining will become more common, a trend also reported in this magazine’s April issue.
54% of adults (or 72% of millennials) believe takeout or delivery services are essential.
96% of operators experienced supply chain delays or shortages in recent months, resulting in 80% of full-service and 2/3 of limited-service operators changing menu offerings.
90% of operators reported a higher food cost (as a percent of sales) than before COVID-19.
The industry added 1.7 million jobs in 2021, but 70% of operators reported not having enough staff to support the service.
The projected jobs in the industry will reach 14.9 million, still at 0.5 million below the 2019 level.

The industry is taking action to respond to such changes.

Many operations made significant changes to become more resilient to the supply-chain and labor-shortage challenges. Some invested in locally grown, fresh, packed, and retail-style food options and expanded their off-premises offerings. Others gained a competitive edge by adopting new technology to build stronger customer relationships and lower labor costs.

What will you recommend to the restaurant and foodservice operators to help them stay competitive in the market?

Note: This viewpoint was first published in the Hospitality News Magazine - Hotel, Dining, and Eatery Trends; The picture was downloaded from Kickfin.com.

Comments

Is It OK for Hotel Staff to Wear Piercings and Tattoos?

Time has changed. I see more and more college students wearing piercings and tattoos nowadays, but is it OK for hotel staff to wear piercings and tattoos? The answer is “no, no, no.” According a report at USAToday.com, customers across the board do not want to see any hotel workers with pierced eyebrow, pierced tongue, tattooed arm, or nose ring. Some may argue that tattooed and pierced workers may seem more acceptable in edgy boutique hotels as compared to the big franchised hotels, but the survey results did not find any differences among a variety of lodging products. Many respondents believe people who wear visible tattoos and piercings are taking a high risk of their professional lives. If you stay in a hotel, do you mind being served by tattooed and/or pierced staff? What if you are the one who makes the hiring decision? References: USAToday.com: http://tinyurl.com/linchikwok08042010 Picture was downloaded from http://tinyurl.com/linchikwok08042010P

Where Coffee Meets Culture: My Experience with Orientation, Socialization, and Culture at Dutch Bros (by Karina Martinez)

When people think of Dutch Bros, they usually picture colorful drinks, loud music, free stickers, and baristas so friendly they’ll jump in the car with you. As someone who has had the opportunity to work for Dutch Bros, I can say that the energy customers feel isn’t an act; it is the result of intentional and effective HR practices that are focused on orientation, socialization, and culture. From your very first day, you experience how these practices shape the entire Dutch experience. Orientation, Socialization, Culture In HR management, orientation is the introduction of the role and company to new hires. This is intended to help them feel welcomed and informed. Socialization goes beyond the initial training process; it’s how new hires grasp the organization’s values, behaviors, and traditions over time. Together, these fun...

Average/Below-Average Looking People Can Earn as Much as the Attractive Ones

Research has shown that attractive people can not only charm interviewers (and thus get hired easier), they are also more likely to earn more as compared to those with average or below-average looks. Accordingly to a Wall Street Journal report , attractive people can earn 3% - 4% more than a person with below-average look. If such difference adds up over a person’s lifetime, an attractive person can earn up to $230,000 more than an ugly worker; even an average-looking person can make $140,000 more. Another relevant Wall Street Journal report also suggests that workers who exercise regularly can earn 9% more than those who do not. If that is the fact (I believe it is), is it legal? Can employers do that? Linchi Kwok and Otto @SyracuseU Career Fair To my knowledge, no law or regulation under EEOC (Equal Employment Opportunity Commission) considers a person’s look as a protective class. It is true that people in general have an idea of what kind of person they feel attract...

Linchi Kwok, Ph.D.

Search This Blog