Fact Check
Anyone who is an owner or working in the restaurant business knows just how competitive and challenging the industry is. Costs are rising, margins are thin, real estate expensive, securing talent and workforce is always a concern. Everyone seems to have their own take on what is going on, trying to get in front of the next trend or new revenue stream. Every year, I take a quick look at the big picture and see where we are as an industry and how the restaurant business impacts our economy and our lifestyles. The National Restaurant Association publishes a fact book every year, and if you have never looked at the stats, it’s worth checking out.
I've cherry picked some of the more impressive and impactful facts from that report that highlight just how important restaurants are in our lives, spending habits, employment opportunities and the nations economy. Here 's a quick look at the business by the numbers:
With well over a one million locations operating across all segments, restaurant sales are projected to hit more than $863 Billion in 2019. That equates to 51% share of the nations spend on food. Think about everywhere and every source for you to spend your money on food. That's 4% of the U.S. gross domestic product and over a 30% increase in less than 10 years. 4 of 10 consumers claim that restaurants are an essential part of their lifestyle. Incredible.
Recent consumer trends tell an interesting story. It clearly shows that take out, delivery and in home dining programs are here to stay.
44% of those consumers have placed an order for restaurant food for take out or delivery using an app or website in the past year.
38% say they are more likely to have restaurant food delivered now than they were two years ago.
41% would buy a meal kit to make at home if their favorite restaurant offered them.
Locally sourced food products are having a high impact on consumer sensibilities. 62% say that would influence them to choose one restaurant over another and 58% prefer local because it supports the farms and food producers in their community.
To me, the most significant data provides great insight into the opportunity restaurants provide and the impact they have on our economy. The restaurant industry employs more minority and women managers than any other industry. Combine that with the fact that 1 in 3 Americans got their first work experience in a restaurant and you can see what an important role this industry plays. 8 of 10 managers and owners started their careers in entry-level positions. I'm not sure any other industry could compare. Think about all the people you know...friends, colleagues and family. Almost 6 of 10 adults say they have worked in the restaurant business at some point in their lives! And anyone with kids knows that it plays a major role in a teens first work experience...in fact 1 in 3 employed teens work in restaurants.
Restaurants play a significant role in most peoples lives, directly or indirectly. While I don't have any hard data to prove it, the most successful entrepreneurs and operators embrace the mission and respect the responsibility.