Highs... and lows

A few specific and interesting stats from this year’s National Restaurant Association State of the Industry report

photo via Unsplash

The headline on this year’s National Restaurant Association State of the Industry report is that U.S. restaurant industry sales will pass $1 trillion in 2024, the first time they’ve reached 10 figures. That’s the good news. 

Here’s the less good news: Operators surveyed for this year’s NRA report say, to an overwhelming degree, that they’re facing serious economic uncertainty. Many are carrying debt from the pandemic and have had trouble hiring and retaining staff. These are perennial industry challenges, but seem especially pronounced during times of financial stress… like this one.

At the same time, restaurants are getting more expensive. January data shows that prices for “food away from home” rose over 5 percent; prices for “food at home” — grocery, namely — rose just 1.2 percent last month. 

Every year, this particular report issues some forward-looking guidance for restaurateurs and others in the industry, and also a few surprises.  Last year, I was struck by the relatively low number of operators (30 percent) who believed delivery from ghost kitchens would gain popularity. This year, it’s just 20 percent. In this case, history has proven the majority right… at least for now. 

The report is light on tech industry stats, though the NRA says a more comprehensive restaurant technology report is coming soon. But it is full of operational info that paints a clear picture — perhaps the clearest we’ve seen since the pandemic started — about the current reality and potential future of the restaurant business. 

Here are a few points of interest: