Report Says Restaurant Industry Sales To Reach Record $899 billion in 2020
The National Restaurant Association's "2020 State of the Restaurant Industry Report" is out and it has some bold predictions and pertinent assessments. The annual report examines key factors impacting the restaurant industry including the current state of the economy, operations, workforce, and food and menu trends across segments from quick-service to fine dining.
"Now in its eleventh consecutive year of growth, the restaurant industry is adapting to consumer preferences faster than ever before," said Hudson Riehle, senior vice president, research and knowledge group, National Restaurant Association. "Consumers tell us they want to use restaurants more than they are now, and the challenge for the industry is meeting consumers where they want to be. We expect this year will see growth in off-premises options, technology that streamlines operations, and more restaurants that are talking about their increased sustainable and eco-friendly practices."
Key findings of the report include:
- Restaurant industry sales are projected to reach a record $899 billion in 2020, with the moderate 4% growth rate mirroring general economic conditions.
- Consumers will continue to be the driving force in the economy, buoyed by a healthy labor market and strong household balance sheets.
- Consumers' pent-up demand remains elevated, with nearly half of all adults saying they want to use restaurants more frequently.
- Restaurant operators are generally positive about business conditions, but they anticipate ongoing challenges that impact both the top and bottom lines.
- Off-premises will be a major driver of sales growth in 2020 and beyond, and many restaurant operators are devoting more resources to this side of their business.
- Restaurant operators agree that the use of technology provides a competitive advantage, and as such are investing in customer-facing technologies that will enhance service and convenience for their guests.
- 76 percent of adults say they are more likely to visit a restaurant that offers locally sourced food and 79 percent of adults say they are more likely to visit a restaurant that offers healthy menu options.
- 65 percent of Millennials say they are more likely to go to restaurants that offer locally sourced alcoholic beverages.
- 53 percent of chefs indicate that low-alcohol beers and cocktails will continue to rise in popularity in 2020.
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