Dec 08 2024 3 mins
The current state of the restaurant and bar industry is marked by a mix of challenges and opportunities. According to the 2024 State of the Restaurant Industry report, sales are forecast to top $1 trillion for the first time in history, with the industry expected to add 200,000 jobs, pushing total employment to 15.7 million people[1]. However, operators are facing intense competition, with 45% expecting competition to be more intense than last year, and 98% citing higher labor costs as an issue[1].
Despite these challenges, consumers continue to crave human hospitality in their culinary experiences, with 9 in 10 adults saying they enjoy going to restaurants[1]. To meet this demand, operators are relying more on technology to streamline operations, reduce labor costs, and boost business[1][3]. For example, Bank of America's State of the Restaurant Industry report notes that technology is helping to relieve staffing and payment issues, creating a more stable environment for operators[3].
In terms of market trends, Technomic's 2024 Global Restaurant Trends Forecast predicts that streamlined menus and elevated operator competition will drive innovation in the industry, with new products rolling out quicker but for shorter periods[2]. Additionally, the report notes that branded collaborations and blended cuisine traditions will continue to draw consumer attention[2].
Recent data from Black Box Intelligence shows that the industry ended 2023 on a high note, with a 2.3% year-over-year increase in restaurant sales in December, despite weather-related nuances[4]. Limited-service restaurant brands, such as fast casual and quick service, continue to perform better, with fast casual achieving strong positive growth in December[4].
Supply chain developments are also a key focus for the industry, with Lacerta Group noting that changes and modernization are key to coping with uncertainty in the supply chain[5]. The use of automation and AI is expected to take center stage, with cloud storage, better networking, and IoT sensors enabling procurement and delivery automation[5].
In response to current challenges, industry leaders are focusing on execution and adapting to shifting market dynamics. For example, Cristin O'Hara, head of Bank of America Global Commercial Banking's Restaurant Group, notes that restaurants are among the best pivoters in terms of adapting to changing market conditions, and are now in a good position to focus on execution[3].
Overall, the current state of the restaurant and bar industry is marked by a mix of challenges and opportunities, with operators relying on technology and innovation to meet consumer demand and stay ahead of the competition.
Despite these challenges, consumers continue to crave human hospitality in their culinary experiences, with 9 in 10 adults saying they enjoy going to restaurants[1]. To meet this demand, operators are relying more on technology to streamline operations, reduce labor costs, and boost business[1][3]. For example, Bank of America's State of the Restaurant Industry report notes that technology is helping to relieve staffing and payment issues, creating a more stable environment for operators[3].
In terms of market trends, Technomic's 2024 Global Restaurant Trends Forecast predicts that streamlined menus and elevated operator competition will drive innovation in the industry, with new products rolling out quicker but for shorter periods[2]. Additionally, the report notes that branded collaborations and blended cuisine traditions will continue to draw consumer attention[2].
Recent data from Black Box Intelligence shows that the industry ended 2023 on a high note, with a 2.3% year-over-year increase in restaurant sales in December, despite weather-related nuances[4]. Limited-service restaurant brands, such as fast casual and quick service, continue to perform better, with fast casual achieving strong positive growth in December[4].
Supply chain developments are also a key focus for the industry, with Lacerta Group noting that changes and modernization are key to coping with uncertainty in the supply chain[5]. The use of automation and AI is expected to take center stage, with cloud storage, better networking, and IoT sensors enabling procurement and delivery automation[5].
In response to current challenges, industry leaders are focusing on execution and adapting to shifting market dynamics. For example, Cristin O'Hara, head of Bank of America Global Commercial Banking's Restaurant Group, notes that restaurants are among the best pivoters in terms of adapting to changing market conditions, and are now in a good position to focus on execution[3].
Overall, the current state of the restaurant and bar industry is marked by a mix of challenges and opportunities, with operators relying on technology and innovation to meet consumer demand and stay ahead of the competition.