19 February 2010
Restaurant Industry Trends for 2010 according to National Restaurant Association
Posted by Crystal under: News; Recession Tips & Tricks .
Within the last two years, the restaurant industry has experienced consistent sales declines, as the US consumers are continuously pressured by job losses, reduced income and fears of long way to economic recovery. Consumers have started to cut back on dining out as far back as in 2007, and this trend continues into 2010. Yet, according to the recently released 2010 Restaurant Industry Forecast by the National Restaurant Association, the restaurant industry will show gradual improvement in 2010 vs. 2009. For instance, 2010 industry sales are forecast to increase 2.5% over 2009 sales to reach $580 billion. The report also shows that restaurants remain strong contributors to the economy, and play in important role in creating work places for the US workforce.
Quick Service Restaurant Segment. Quick Service Segment in 2010 is expected to do better than higher-end restaurants, as diners focus more on value and specials. Catering business is also expected to show strong growth in 2010 by increasing 4.5% over 2009.
Full Service Restaurant Segment. This segment has been hard hit by slashed consumer spending. Full service restaurants will continue to deal with challenges, including slower traffic, depressed consumer demand and costly regulatory environment. According to Technomic Inc., total of 21,425 restaurants have closed between 2008 and 2010, with almost 84% of them from the full-service segment. Thus, it is expected that full-service restaurants, including casual dining and upscale-dining concepts, will continue to post the largest sales losses in 2010 as it has been the case for the past two years.
Consumer Trends. The report projects that there will be a growth opportunity in the food delivery and other off-premise options, such as catering, cooking classes and other interactive activities involving diners.
Social Media. The report reveals that using new media in 2010 will be an effective marketing solution in reaching out to new customers and keeping existing ones. A solid understanding and utilization of social media tools, such as Yelp, Twitter, Facebook, and YouTube, is projected to become more critical to restaurant marketing in 2010 and is expected to help restaurants fight economic downturn by attracting more customers and reducing marketing expenses. The report points out that the “word of mouth” has moved on-line, and that modern diners use on-line services to browse menus, make reservations, get restaurant reviews, etc.
Energy Efficiency. Restaurants are expected to invest in energy-efficient equipment, reduce their water consumption, and expand other “green” initiatives.
Sustainability. Restaurants are projected to use locally sourced foods and emphasize healthy and nutrition-rich ingredients. This reflects general consumer trend, as customers are trying to eat locally produced foods and become more health-conscious than ever before. Restaurants are also expected to source locally produced beer and wine, provide organic meals, offer gluten-free menu options, and be food allergy-conscious.
Ethnic Cuisines. Ethnic cuisines will remain a popular menu trend in 2010, with fusion menus gaining even more popularity. The most popular ethnic cuisines include French, Spanish, Thai, and Japanese.
Other issues that restaurant owners will be most concerned about in 2010 are cost issues, food safety, and the increase in governmental regulation of foodservice. Good news is that despite lower sales, many restaurants expect their profits to increase, as many restaurant owners have spent this past year evaluating costs, cutting expenses and improving efficiencies.
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