Income
The National Restaurant Association annual report indicates that restaurant sales are projected to reach $997 billion by the end of 2023. The income growth is projected to increase due to the high number of people preferring to eat out rather than cook and clean up (National Restaurant Association, 2023). The growth is associated with increased restaurant profitability, allowing them to invest in expanding restaurant operations. Restaurants can maximize their income by offering a diverse range of foods, providing customers with a holistic experience. The income growth presents an opportunity for increased output, including online delivery services.
Operations
The operational trends indicate a 60% chance of expansion of most restaurant operations to accommodate the growing number of customers. Excluding the number of customers who prefer restaurant services will enable the owners to expand the number of hired servers and chefs (National Restaurant Association, 2022). The operations growth will also present revenue generation opportunities through other channels, such as cooking and selling aprons and caps, meal kits, and chefs’ tables.
Inflation
The report states that macroeconomic factors such as inflation increase restaurants’ food costs. Inflation has been a global challenge affecting many industries, reducing revenues due to the high cost of inputs. The restaurant industry is concerned because, with inflation, the cost of food increases. Restaurants may delay increasing their prices to remain competitive with their peers. This results in a reduction in income for the owners until the inflation rate decreases.
Employment
The food service workforce is projected to grow by 500,00 jobs, totalling the industry’s employment opportunities to 15.5 million people by the end of 2023. Workers contribute to increased output in the hotel industry by providing the required services to customers. The increased number of workers enables restaurants to grow their production as they can cook more meals and serve more customers. Increasing the number of workers benefits the industry as it helps alleviate the workload for overwhelmed workers. They can achieve a better work-life balance with reduced shift hours, which in turn increases morale and productivity.
Customers
There are opportunities for growth and profitability due to an increase in customers who seek a restaurant experience. 84% of customers say eating at a restaurant with family is a good leisure activity (National Restaurant Association, 2022). During the lockdown, customers faced limited opportunities due to unemployment and a decline in income. However, with the reopening of economies, customers have sufficient income to engage in leisure activities such as eating at restaurants.
Reference
National Restaurant Association. (2022). 2022 State of the restaurant industry. NRA. Web.