The restaurant industry is expected to reach a new high of $997 billion in sales this year, according to new research from the National Restaurant Association.
The association’s 2023 State of the Restaurant Industry report found that three in four restaurant operators believe business conditions have normalized from the COVID-19 pandemic or are even on a “new, more positive normal.” The focus in the coming year will be sustaining that growth, said Michelle Korsmo, president and CEO of the National Restaurant Association.
Sustaining that growth will require more workers and restaurants expect to fill many open positions in 2023. The industry is expected to add 500,000 new jobs this year, increasing its overall workforce to 15.5 million employees – a return to pre-pandemic levels.
“Our hiring rate and wage increases are outpacing the overall private sector, and we’ll also contribute nearly $1 trillion to the economy in 2023,” Korsmo said. “This year’s report offers an in-depth analysis of what’s driving that growth and the tremendous opportunities for restaurant owners, operators, and team members looking to grow their businesses and expand their careers.”
This year’s report focuses on several economic conditions expected to impact the industry in 2023:
- The road to recovery will be long. For 20 percent of operators, business conditions are already close to normal. Another 30 percent of operators say business conditions will never return to normal. The remaining half say they’re on the path back.
- Rising costs continue to be a challenge. Ninety-two percent of operators indicate higher food costs are a significant issue for them.
- Competition is heating up. Forty-seven percent of operators expect competition will be more intense than last year.
Further, the association found that many of the creative solutions used by restaurants during the height of the pandemic and indoor dining closures are becoming permanent pieces of operators’ business. Some of those solutions include alcohol-to-go beverages, outdoor dining, more drive-thru opportunities, and increased technology offerings such as digital payment.
“Operators are using creative and innovative ways to develop additional revenue for their restaurants,” said Hudson Riehle, vice president of research for the National Restaurant Association. “During the pandemic, they showed their flexibility and creativity and invested in outdoor dining, alcohol delivery, takeout, and other off-premises options. All of it helped the industry survive the worst of times and diversify income streams. Many of those successful programs are now part of their ‘new normal’ way of operating, so as the economy recovers, operators are cautiously optimistic. Consumers crave the restaurant experience; they want to dine out, and restaurants are ready to serve them.”
The full 2023 State of the Restaurant Industry report is available here.