Dec 06 2024 3 mins
The current state of the restaurant and bar industry is characterized by growth, innovation, and adaptation to changing consumer preferences and regulatory requirements.
According to recent market research, the restaurant and foodservice industry is forecast to reach $1 trillion in sales in 2024, marking a significant milestone[2]. This growth is driven by various factors, including shifting consumer tastes, population growth, urbanization, and technological advancements. The industry is also expected to add 200,000 jobs, pushing total employment to 15.7 million people by the end of 2024.
In terms of market trends, there is a notable shift towards low-ABV and non-alcoholic options, with the market value of non-alcoholic products growing by 9% in 2022 from 65% in 2018[1]. This trend is expected to continue, with non-alcohol volumes forecasted to grow at a CAGR of +9% between 2022 and 2026.
Recent deals and partnerships in the industry include Authentic Restaurant Brands' acquisition of Fiesta Restaurant Group, a $225 million all-cash transaction that highlights the company's strategic regional expansion approach[3].
Consumer behavior is also undergoing significant changes, with diners preferring to dine at restaurants over ordering takeout or delivery, driven by a desire for atmosphere and socialization[4]. The average monthly spend on dining out has increased to $191 in 2024, compared to $166 in 2023, with women now spending more on dining out than men.
Regulatory changes are also impacting the industry, with OSHA introducing new requirements in 2024 aimed at enhancing workplace safety and protecting employee well-being[5]. These changes include stricter ventilation standards for restaurants and bars, requiring regular inspections and maintenance of ventilation systems.
Industry leaders are responding to current challenges by leveraging technology to meet operational challenges, reduce labor costs, and boost business[2]. However, consumers continue to crave human hospitality in their culinary experiences, emphasizing the importance of balancing technology with personal service.
In comparison to the previous reporting period, the industry is experiencing increased competition, with 45% of operators expecting competition to be more intense in 2024[2]. Additionally, labor and food costs remain significant concerns, with 98% of operators citing higher labor costs and 97% citing higher food costs as issues for their restaurants.
Overall, the restaurant and bar industry is navigating a complex landscape of growth, innovation, and regulatory changes, with a focus on adapting to shifting consumer preferences and leveraging technology to drive success.
According to recent market research, the restaurant and foodservice industry is forecast to reach $1 trillion in sales in 2024, marking a significant milestone[2]. This growth is driven by various factors, including shifting consumer tastes, population growth, urbanization, and technological advancements. The industry is also expected to add 200,000 jobs, pushing total employment to 15.7 million people by the end of 2024.
In terms of market trends, there is a notable shift towards low-ABV and non-alcoholic options, with the market value of non-alcoholic products growing by 9% in 2022 from 65% in 2018[1]. This trend is expected to continue, with non-alcohol volumes forecasted to grow at a CAGR of +9% between 2022 and 2026.
Recent deals and partnerships in the industry include Authentic Restaurant Brands' acquisition of Fiesta Restaurant Group, a $225 million all-cash transaction that highlights the company's strategic regional expansion approach[3].
Consumer behavior is also undergoing significant changes, with diners preferring to dine at restaurants over ordering takeout or delivery, driven by a desire for atmosphere and socialization[4]. The average monthly spend on dining out has increased to $191 in 2024, compared to $166 in 2023, with women now spending more on dining out than men.
Regulatory changes are also impacting the industry, with OSHA introducing new requirements in 2024 aimed at enhancing workplace safety and protecting employee well-being[5]. These changes include stricter ventilation standards for restaurants and bars, requiring regular inspections and maintenance of ventilation systems.
Industry leaders are responding to current challenges by leveraging technology to meet operational challenges, reduce labor costs, and boost business[2]. However, consumers continue to crave human hospitality in their culinary experiences, emphasizing the importance of balancing technology with personal service.
In comparison to the previous reporting period, the industry is experiencing increased competition, with 45% of operators expecting competition to be more intense in 2024[2]. Additionally, labor and food costs remain significant concerns, with 98% of operators citing higher labor costs and 97% citing higher food costs as issues for their restaurants.
Overall, the restaurant and bar industry is navigating a complex landscape of growth, innovation, and regulatory changes, with a focus on adapting to shifting consumer preferences and leveraging technology to drive success.