Today’s Restaurant, the trade newspaper for the restaurant industry in Florida and Georgia offers:
|Texas restaurant industry leads nation in projected sales growth for 2013|
Total restaurant industry sales nationwide are expected to exceed $660 billion in 2013 – a 3.8 percent increase over 2012, marking the fourth consecutive year of real sales growth for the industry – according to the National Restaurant Association (NRA). The nation’s 980,000 restaurants will employ 13.1 million individuals as the second-largest private-sector employer in the U.S., representing 10 percent of the total U.S. workforce. In addition, 2013 will be the 14th straight year in which restaurant industry employment will outpace overall employment. The NRA projects that the industry will add 1.3 million jobs by 2023.
“Despite a continued challenging operating environment, the restaurant industry remains a strong driver in the nation’s economy,” said Dawn Sweeney, president and CEO of the National Restaurant Association. “Ours is a resilient and flexible industry that rolls with the punches to find ways to keep growing, relying on the creativity and innovation exhibited by the entrepreneurial spirit. In 2013, restaurant operators will continue to explore ways of navigating the rocky economic landscape to find the road to success.”
While the restaurant industry is expected to grow in 2013, operators will continue to face a range of challenges. The top challenges cited by restaurateurs vary by industry segment, and include food costs, the economy and health care reform.
After increasing steadily in the last three years, wholesale food costs will continue on an upward trajectory through 2013, putting significant pressure on restaurants’ bottom lines as about one-third of sales in a restaurant goes to food and beverage purchases.
The sluggish economic and employment recovery impacts consumers’ cash-on-hand situation, which in turn impacts restaurants as there is a strong correlation between consumers’ disposable income and restaurant sales.
Preparing for the implementation of health care reform will put additional cost pressure on some restaurant operators in the near future. One-third of a typical restaurant’s sales go toward labor costs, so significant increases in those costs will result in additional cost management measures to preserve the already slim pre-tax profit margins of 3-5 percent on which most restaurants operate.
In addition to containing a national, regional and state-by-state sales and employment outlook, the 2013 Restaurant Industry Forecast provides details on the latest economic, consumer, technology and operator trends.
The Texas Restaurant Association - www.restaurantville.com - was formed in 1937 to serve as the advocate in Texas and the indispensable resource for the hospitality and foodservice industry. Today, as a leading business association, TRA represents the state’s $40.8 billion restaurant industry, which is comprised of 35,000 plus locations and a workforce of over one million employees. Along with the Texas Restaurant Association Education Foundation, the Association represents, educates and promotes the growing industry.