Restaurant operators have faced difficulties since 2020, with fluctuating inflation, supply chain and labor challenges.
Despite this, the Bureau of Labor Statistics reportsthe number of dining establishments in Oklahoma City has grown each of the last 10 years. And, according to the National Restaurant Association , 49% of restaurants reported year-over-year sales increases.
Here’s how restaurant operators can evolve with these industry-shaping trends.
Adapt to price fatigue
Controlling food costs is an enduring challenge for restaurant operators, with many forced to increase prices when costs of staple ingredients rise.
Regardless, data shows consumers still enjoy dining out. A
US Foods report shows Americans dine out three times per month and spend roughly $166/person/month. Restaurants should make the dining-out
experience worth the price tag by boosting value perception and satisfaction for both budget-conscious consumers and higher-paying customers.
Leverage data
Restaurants generate volumes of data from their point-of-sale systems. Operators analyze that data to understand who’s coming through their doors and what they’re ordering, and to inform operations like managing inventory, launching new menu items and developing tailored deals. Analyzing inventory data enables restaurants to shift order recommendations and help avoid selling out during peak hours.
Address labor shortages
Pandemic-era labor shortages have easedbut not disappeared. In November 2023, the
National Restaurant Association reported that restaurant employment levels were still 4% below February 2020 readings.
As restauranteurs grapple with labor shortages, they’re turning to technology to address workflow challenges, like using voice-enabled AI to take drive-thru orders. The goal is to create a faster, more frictionless experience while allowing employees to focus on duties like fresh food preparation.
Operators are adjusting to business realities by increasing wages and enhancing benefits to attract and retain employees. Data from the
U.S. Bureau of Labor Statistics shows the average hourly rate for restaurant workers has increased rapidly since the onset of the pandemic. There will likely be pressure to increase minimum wages this year, but operators should think beyond base pay when recruiting workers.
Adopt a fraud prevention plan
Technological solutions have become critical to restaurant operations. According to BofA Global Research, restaurants’ IT budgets have doubled since March 2020 to account for
up to 10 percent of gross revenue in June 2023. It’s a testament to the pivotal role technology plays in the industry. That said, tech solutions and digital sales also increase the potential for cybercrime.
The restaurant industry is rediscovering a sense of balance. Operators who effectively implement these strategies and adapt to a changing landscape will be in a strong position for growth.
Cristin O'Hara is the managing director and restaurant group head at Bank of America, and Tony Shinn is president of Bank of America, Oklahoma City. Copyright © 2024 BridgeTower Media. All Rights Reserved.
Most Popular
Comments / 0