Welcome!

News Feed Item

Restaurant Industry Enters Fifth Consecutive Year of Sales Growth, Will Continue Strong Job Creation Despite Challenges

National Restaurant Association's 2014 Restaurant Industry Forecast Reveals Economic, Workforce and Consumer Food and Technology Trends

WASHINGTON, Jan. 16, 2014 /PRNewswire/ -- 2014 will mark the fifth consecutive year of restaurant industry sales growth despite a continued challenging economic landscape, according to the National Restaurant Association's 2014 Restaurant Industry Forecast released today. Industry sales are projected to exceed $683 billion in 2014, up 3.6 percent from 2013's sales volume of $659.3 billion.

To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/64829-national-restaurant-association-5th-consecutive-year-industry-sales-growth

(Logo: http://photos.prnewswire.com/prnh/20131202/MM26024LOGO-b)

For the complete NRA 2014 Restaurant Industry Forecast, including graphics and video, visit Restaurant.org/Forecast.

2014 also will mark the 15th straight year in which restaurant industry employment growth will outpace overall employment growth. The industry will continue to be the nation's second-largest private employer with 990,000 restaurants employing 13.5 million individuals, or about 10 percent of the total U.S. workforce.

"As our nation continues its road to recovery, the restaurant industry will remain a key driver of economic growth and a leading jobs creator," said Dawn Sweeney, president and CEO of the National Restaurant Association. "Restaurants touch every community across the U.S., and 2014 will be a year of growth and innovation as the industry focuses on inspired new ways to meet consumer demand while providing valuable careers to millions of Americans." 

"Despite facing a range of challenges, America's restaurants are showing continued resiliency and innovation," said Hudson Riehle, senior vice president, Research & Knowledge for the National Restaurant Association. "As the industry enters its fifth straight year of real sales growth, operators are feeding consumer appetites with new technology, customer loyalty efforts, and evolving menu options. Consumers currently have a historically high pent-up demand for restaurant services, which is likely to translate into a business boost as the economy continues to improve – and our nation's foodservice operators are rising to the challenge."

Workforce Outlook

The NRA expects eating-and-drinking places to add jobs at a solid 2.8 percent rate in 2014, a full percentage point above the projected 1.8 percent gain in total U.S. employment.

The restaurant workforce grew at a robust rate in 2013, keeping the industry among the economy's leaders in job creation. Eating and drinking places added jobs at a strong 3.3 percent rate in 2013 outpacing total US employment which grew at 1.6 percent.

While every state is expected to see their restaurant industry workforce expand during the next decade, states in the southern and western regions of the United States will continue to lead the way in 2014. Arizona and Texas are projected to set the pace with restaurant-and-foodservice job growth above 15 percent between 2013 and 2023. Florida (15.0 percent), Nevada (14.7 percent) and Georgia (14.4 percent) are also expected see their restaurant employment base expand at rates well above the national average during the next 10 years. 

Challenges and Opportunities

While the restaurant industry is expected to grow in 2014, operators will continue to face a range of challenges. The top challenges cited by restaurateurs include food costs, labor costs, and the economy.

After increasing steadily in the last four years, wholesale food costs will continue to be elevated through 2014, putting significant pressure on restaurants' bottom lines as about one-third of sales in a restaurant goes to food and beverage purchases.

Virtually all operators across the industry (limited-service and tableservice restaurants) saw labor costs as a primary challenge in 2013, and that will continue in 2014. Challenges with ACA implementation and minimum wage increases across the country have made a significant impact on restaurant bottom lines, as typically one-third of restaurant sales is spent on labor.  

One of the primary reasons that restaurant-industry sales growth hasn't fully taken off during the economic recovery is that consumers for the most part haven't broken out of their recession rut. When asked in December 2013 to rate the current state of their own personal finances, nearly six out of 10 adults described their finances as either fair or poor and among those adults, nearly one-half said they are very concerned about the economy and have cut back significantly on spending. 

Despite spending cutbacks, consumers have substantial pent-up demand for restaurant services with two out of five consumers saying they are not using restaurant as often as they would like; with improving economic conditions, that demand is likely to turn into sales.

Consumer Trends

Technology innovation continues to play a vital role within the industry. Nearly one-fifth of consumers say technology options are an important feature that factors into their decision when choosing a fullservice restaurant; 24 percent of 18- to 34-year-olds say they consider a restaurant's technology options when selecting where to go, compared to 11 percent of individuals age 65 and over.

Similarly, more than one-fifth of consumers say technology options factor into their decisions when choosing a limited-service restaurant; 33 percent of 18- to 34-year-olds, compared to 7 percent of those 65-plus.

To keep up with the evolution of consumer palates, restaurant operators across segments added new food and beverage menu options throughout 2013 and will continue to do so in 2014.

Local sourcing and nutritious options (such as healthful kids' meals, gluten-free) continue to be the top trends throughout the industry.

Eight out of 10 of consumers say restaurants offer more healthy menu options now compared to two years ago, and seven out of 10 say they are more likely to visit a restaurant that offers healthy options.

Environmental sustainability is a long-term trend among operators and consumers.  Nearly three out of five consumers say they are likely to make a restaurant choice based on its eco-friendly practices.

Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 990,000 restaurant and foodservice outlets and a workforce of 13.5 million employees. We represent the industry in Washington, D.C., and advocate on its behalf. We operate the industry's largest trade show (NRA Show May 17-20, 2014, in Chicago); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart); as well as the Kids LiveWell program promoting healthful kids' menu options. For more information, visit Restaurant.org and find us on Twitter @WeRRestaurants, Facebook and YouTube.

America Works Here @WeRRestaurants

 

Restaurant Industry’s Share of the Food Dollar

 

The restaurant industry is the nation’s second-largest private employer with 990,000 restaurants employing 13.5 million individuals, or about 10 percent of the total U.S. workforce

 

2014 will mark the fifth consecutive year of restaurant industry sales growth despite a continued challenging economic landscape

 

To view the multimedia assets associated with this release, please click: http://www.multivu.com/mnr/64829-national-restaurant-association-5th-consecutive-year-industry-sales-growth

SOURCE National Restaurant Association

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Successful digital transformation requires new organizational competencies and capabilities. Research tells us that the biggest impediment to successful transformation is human; consequently, the biggest enabler is a properly skilled and empowered workforce. In the digital age, new individual and collective competencies are required. In his session at 19th Cloud Expo, Bob Newhouse, CEO and founder of Agilitiv, drew together recent research and lessons learned from emerging and established compa...
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
Effectively SMBs and government programs must address compounded regulatory compliance requirements. The most recent are Controlled Unclassified Information and the EU's GDPR have Board Level implications. Managing sensitive data protection will likely result in acquisition criteria, demonstration requests and new requirements. Developers, as part of the pre-planning process and the associated supply chain, could benefit from updating their code libraries and design by incorporating changes. In...
"Coalfire is a cyber-risk, security and compliance assessment and advisory services firm. We do a lot of work with the cloud service provider community," explained Ryan McGowan, Vice President, Sales (West) at Coalfire Systems, Inc., in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
CloudJumper, a Workspace as a Service (WaaS) platform innovator for agile business IT, has been recognized with the Customer Value Leadership Award for its nWorkSpace platform by Frost & Sullivan. The company was also featured in a new report(1) by the industry research firm titled, “Desktop-as-a-Service Buyer’s Guide, 2016,” which provides a comprehensive comparison of DaaS providers, including CloudJumper, Amazon, VMware, and Microsoft.
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...