The restaurant industry has been struggling for two solid years. First the pandemic. Now inflation and sky-high food prices.
The industry was hopeful at the start of 2020, predicting sales would reach a record $900 billion dollars. Then came the pandemic.
According to the National Restaurant Association, the sales were about $240 billion dollars shy of hitting their goal.
An economist says that the industry faces two challenges as it tries to bounce back.
According to NRA’s Hudson Riehle, “Labor recruitment is their top challenge. Look at challenge number two-- food costs. Just a year earlier, 3 percent of operators reported that as their top challenge and now it’s jumped to one out of every five... so, in an environment where growth is moderate and the industry is dealing with increased operating costs, it does put a pressure on margins.”
The National Restaurant Association says that we could see sales grow again this year, but that may be limited by consumer concerns about rising food and gas prices.
Related:
It will take another year for the restaurant industry to fully recover
Ranching and Restaurants: George Eldridge’s story
Better understanding of restaurant closures due to COVID
Is the U.S. entering a period of sustained inflation?