Despite the slow economy, the restaurant industry remains the cornerstone of a strong American economy. According to the National Restaurant Association, anticipated industry sales should exceed $604 billion in 2011, which is 3.6% more than in 2010.
As for the impact on the overall economy, US restaurants employ nearly 13 million full table and quick service workers, or one in ten US workers. marketing, media, and related vendors generally, the amount of revenue affected by restaurant sales skyrockets to more than 20 million.
Dawn Sweeney, president and CEO of the National Restaurant Association, stated that, “It has been a very challenging time for our industry over the past two years and while challenges still lie ahead, we are pleased to report that the outlook is improving. With a total economic impact of more than $1.5 trillion, the industry Restaurant management is a strong player in the economic recovery and will continue to provide consumers with the choice and convenience they want. As the cornerstone of communities in the United States, restaurants will continue to be an essential part of our daily lives.”
Although the economy and industry forecasts are positive, the vast majority of restaurants are struggling to stay alive. With the possible exception of New York City, the income gap cannot be filled by increases in menu prices. Customers continue to watch their budgets and eating out is often the victim.
Two out of five bosses report that they haven’t been able to dine out as much as they normally would. More than 60% of Americans have adjusted their budgets to accommodate the slow economy and 24% of people say they will spend less on restaurants than they did in 2010.
More than 90% of restaurants are small businesses with fewer than fifty employees. While the big chains have the advantage of big marketing and advertising budgets, local restaurants have the advantage when it comes to new dining trends.
- Technology even has the playing field. Regional and local restaurants can set up and manage social media to attract new customers. Imagine the potential of reaching a market of teenagers literally sleeping with their cell phones or a personal review posted virally to their 300 closest friends. Cheap, but priceless.
- Potential and existing customers expect menus online and now they want that menu on their mobile phones and tablets. The cost of creating and maintaining websites and mobile apps is so small that local restaurants can’t afford them.
- Another big trend in 2011 is the growing momentum of the “Go Local” movement. It’s not about the west coast or the east coast; It’s about my city, my neighborhood and my food. People aren’t just buying locally grown food for home, they’re also looking to their restaurants for that local support.
- People have grown tired of processed foods and foods with no nutritional value. They want whole ingredients and restaurant-prepared meals.
- Customers are more likely to return to restaurants that expand and adapt their menus to include a wide variety of healthy and affordable meals.
- Comfort food is in fashion. People want the food they grew up with and appreciate. In these difficult times, people want healthy and comfort foods, and local and regional restaurants are better suited and more knowledgeable about local cuisine.
- In addition to local cuisine and home comfort foods, customers are also looking for the exotic and unique. Flexible local menus can better deliver the special dining experience that people need.
- Super hot trend: mobile food service is taking off! Many restaurants are following up on their catering “cockroach trainer” counterparts and bringing their restaurants to the customer.
- In 2010, the passage of health care reform forced many chains to reveal calorie counts on their menus. The path to nutrition transparency began with nutrition and ingredient labeling on processed foods, but now that trend is becoming ‘technical’ with the use of smartphones and other mobile currencies to download, via menu barcodes, detailed information on the use and origins of food ingredients.
So what is the cutting edge of customer service? Handheld devices are used to take orders that instantly appear in the kitchen and automatically track inventory. Some restaurants go a step further by allowing customers to order their own food on their mobile devices and even pay the bill without waiting for the waiter.
It’s a great day for regional and local restaurants. Never before has such market penetration been possible for small businesses and the beauty of technology is that the small chain or independent restaurant can look just as advanced and modern as the big ones.