Despite its numerous challenges during and after the COVID-19 pandemic, the restaurant and food service industry continues to grow and thrive. The National Restaurant Association (NRA) 2024 state of the industry report forecasts sales to top one trillion dollars for the first time in history. The restaurant industry is the second largest private employer in the nation. According to the NRA report, an additional 200,000 jobs will be added in 2024 with total employment reaching 15.7 million people. Yet, 98% of operators report that rising labor and food costs continue to dig into profitability. Real estate and property insurance hikes also pose a challenge. Get report here.
Still, customers continue to dine out in droves despite their grumbling about the increased cost of a meal and added service charges popping up on restaurant tabs. Nine out of ten adults say dining out delivers an experience that they cannot replicate at home and saves them time and effort. This includes families. According to a recent survey of 491 families conducted by Affinity Group, a foodservice consulting agency, 74 percent are dining out more often. Convenience and value for money are the main reasons. The study noted that 58% of respondents actively look for deals and discounts before deciding on a restaurant, highlighting the importance of affordability.
Shareable plates are popular. Poached shrimp toast on sourdough toast at the Peter & Paul Hotel in New Orleans
Pat Cobe, Senior Editor for Restaurant Business, a leading U.S. trade magazine, has covered the industry for more than two decades. Her reporting includes interviews with chefs, tracking food and beverage trends, and covering menu research and development, among other topics pertinent to the industry, from workforce issues to new technology. She writes the regular Behind the Menu and Taste Tracker columns and edits the weekly On the Menu Newsletter. Pat co-hosts the Menu Talk podcast with Brett Thorn, a longtime senior food editor with Nation’s Restaurant News. Her industry beat focuses on chain restaurants, from large corporations to small start-ups.
Pat Cobe, Senior Editor, Restaurant Business
She joined us on The Connected Table LIVE as part of our Behind the Byline series of interviews with noted industry journalists. (see link below to listen). During our lively discussion. Cobe underscored the importance of value dining, quick service, take-out, and trading down. Customers now may seek meals in convenience stores or order to-go rather than seated establishments. Beverages are a growing category, notably low and no-alcohol drinks that are enhanced to appeal to younger consumers, from dirty sodas to fancy bubble teams to hyped up coffees. juices and functional drinks. Call it what you want, but every added ingredient to those drinks delivers liquid profit. We are seeing alcohol and non-alcohol cocktails running between $12 and $25 per drink.
Ingredients and labor go into the cost of a well-made cocktail. Photo credit: Ash Edmonds on Unsplash
Snack items and street food concepts are popular menu additions as Americans remain a nation of noshing. Small plates, snacks, tapas – whatever you want to call them on a menu- are more popular than ever. It is no different at home. According to SNAC International (formerly Snack Food Association), 35% more consumers are integrating their favorite snacks into their meals to save time and money. This includes using both sweet and savory snacks as a key ingredient in no-prep dinners.
We cannot help but wonder if all that snacking is a sign of the times. More Americans are probably stress- eating as we head into another presidential election and deal with a constant barrage of negative world events. Consumers are looking for healthy snacking/meal/beverage options, and that is encouraging. Now, if we can just get everyone off their phones so they can mindfully enjoy what they are eating without turning every meal into a photo shoot!
Did you know?
• 9 in 10 restaurants have fewer than fifty employees
• 7 in 10 restaurants are single-unit operations
• 8 in 10 restaurant owners started their industry careers in entry-level positions
• 9 in 10 restaurant managers started in entry-level positions
• 63% of adults have worked in the restaurant industry, making it the nation’s training ground
• Restaurants employ more minority managers than any other industry
• 41% of restaurant firms are owned by minorities – compared to 30% of businesses in the overall private sector.
• Waitstaff at full-service restaurants earn a median of $27.00 an hour, with an upper quartile of $41.50 and a lower quartile of $19.00.
Source: National Restaurant Association
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