Restaurants still on unsure footing
Consumer demand high; profits, supply and worker retention challenge
By Forrest J.H.
The future for restaurants is as unpredictable as ever.
While restaurant operators are optimistic about growing sales and employment, they are less rosy about making money, finding the right workers and keeping them on the job. Hiring has also slowed over the past year as employment in the industry nears pre-pandemic levels.
Ninety-eight percent of operators surveyed by the National Restaurant Association say they struggle to afford labor and food, resulting in about four in 10 finishing 2023 in the red. Despite this, the National Restaurant Association expects record sales in 2024, though about half of restaurants surveyed needed more employees to meet demand and seven in 10 restaurants have a hard time filling job openings.
The industry group’s report also showed mixed feelings on the use of technology in restaurants, but half of respondents agreed delivery, takeout and drive-through options are an essential part of their lives.
Three quarters of restaurant-goers said they would also choose a smaller portion size if it meant a lower price.
The restaurant industry has been reeling since the 2020 coronavirus pandemic, which led to many closures and layoffs and drastic changes in how people eat and work in restaurants. Delivery, outdoor dining and phone-based service exploded in popularity and has largely stuck around.
Restaurant employment is almost exactly the same today as the month before the pandemic, according to the Bureau of Labor Statistics, accounting for about 12.3 million jobs. Hiring has steadily increased since 2021, but the trend slowed in 2023, even showing very slight losses in January 2024.
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This article’s ingredients
2024 State of the Restaurant Industry
February 5, 2024
National Restaurant Association research reports
https://restaurant.org/research-and-media/research/research-reports/state-of-the-industry/
Total restaurant industry jobs
National Restaurant Association research and media
