4 Key Trends Shaping the Restaurant Industry
In the mid-twentieth century eating out was almost a luxury. Since then, the frequency of going out to eat has changed so much that it is bringing about changes to the restaurant business. This and other trends have caused shifts in the industry, including the way we pay for purchases. What used to be a cash-driven industry has become increasingly dependent on credit or debit cards, causing some concern about security for consumers.
Increase in Away-from-Home Spending
In 1955, about 25 percent of the family food dollar was spent in the restaurant industry. That number has risen to 48 percent in the last sixty years and shows little sign of decreasing. This increase in dollars spent in the industry has led to annual sales recorded at $799 billion. A portion of that is credited to food and beverage purchases at full-service restaurants that totaled a projected $236 billion in 2017. Frequency statistics show 51 percent of diners go out to eat more than once a week.
Payment Methods and Technology
Image via Flickr by frankieleon
Technology and diners’ payment methods for away-from-home food purchases have also shifted. When paying for food, 69 percent of millennials use their card, and 58 percent of diners use mobile pay. The use of technology has influenced other areas as well. Over 80 percent of restaurants have turned to technology for things like online ordering, reservations, employee scheduling, and payments to help run their businesses. Restaurants are most likely to use Facebook for social media marketing (92 percent) rather than television for advertising.
Employment Outlook
The increase in sales may be driving the rise in restaurant jobs to 14.7 million by the year 2027. Approximately one-third of owners indicate staffing is still a challenge with a hiring crisis being a problem for the industry. A ten-year increase in awarded bachelor’s degrees has led to a shortage of employees willing to work in low-paying restaurant jobs. Even though entry-level positions are hard to fill, they may lead to employment growth in the future.
Future Appears Positive
Although staffing remains a challenge, the overall outlook for restaurant trends looks positive. The myth of a 90 percent failure rate for new restaurants is dismissed by the actual 3-4 percent growth rate in the industry. Projected restaurant locations should top a million by the end of the year in the U.S. More good news showed a median income of $79,222 for the average restaurant owner in 2017.
These trends indicate that the restaurant industry has and will change in various ways and the prospects for new business looks positive. Cybersecurity will continue to be a concern, but overall, these trends indicate that the restaurant industry may be a great place moving forward for consumers, employees, and owners alike!
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