Independent operators share their outlook for 2022. A plant-based virtual restaurant concept becomes reality. Suggestions on how restaurants can build back traffic in 2022. These stories and more this week in foodservice.

While many restaurant operators are more confident in their business’s survivability than they were in 2020, independent restaurants nationwide still remain at risk of closing. That’s according to a study done by the James Beard Foundation released earlier this month. The organization polled its network of chefs and restaurant owners to get their thoughts on the state of their businesses and more.

Among those surveyed, 50% expressed no or moderate confidence they will make it through the winter. And, not surprisingly, when asked the top 3 issues facing restaurants the following rose to the top of the list: staffing (78%), higher operational costs (77%) and lower revenue (58%).

A large portion of those who reported higher operational costs and lower revenue cited supply chain disruptions as a major contributor to their business challenges. While of some concern, outdoor dining requirements and outdoor heating do not appear to be major challenges for most respondents, per the study. Also, 60% of respondents cited state and federal grants, loans and other relief programs – such as a replenishment of the Restaurant Revitalization Program, the Paycheck Protection Program, and Economic Injury Disaster (EIDL) grants and loans – would help them meet these challenges.

Economic News This Week

• The Consumer Price Index increased 0.8% in November, per the U.S. Bureau of Labor Statistics. This comes on the heels of a 0.9% October increase. The index for all items less food and energy rose 0.5% in November following a 0.6% increase in October. Over the last 12 months, the all-items index increased 6.8% This rate exceeded economists' projections and represents the fastest rate of growth for inflation since 1982. The energy index rose 3.5% in November as the gasoline index increased 6.1% and the other major energy component indexes also rose. The food index increased 0.7% as the index for food at home rose 0.8%.
• Initial jobless claims totaled 184,000 for the week ending Dec. 4, 2021. This represents a decrease of 43,000 from the previous week. This also marks the lowest level for initial claims since Sept. 6, 1969, when it was 182,000, per the U.S. Department of Labor. The 4-week moving average was 218,750, a decrease of 21,250 from the previous week. This represents the lowest level for the 4-week average since March 7, 2020, when it was 215,250.
• The number of job openings increased to 11.0 million on the last business day of October, per the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover (JOLT) study. Hires were little changed at 6.5 million and total separations edged down to 5.9 million. Within separations, the quits rate decreased to 2.8% following a series high in September. The layoffs and discharges rate was unchanged at 0.9%.
• The NFIB Small Business Optimism Index hit 98.4 in October, a 0.2-point increase from September. Four of the 10 Index components improved, four declined, and two were unchanged. The NFIB Uncertainty Index decreased four points to 63. Owners expecting better business conditions in the next 6 months came in at a net negative of 38%, a 1-point decrease and a 48-year record low reading. In addition, 48% of owners reported job openings they are unable to fill, a decrease of one point since October. Overall, 60% of small business owners reported hiring or trying to hire in November.

This Week in Foodservice

• Restaurants that want to rebuild customer traffic in 2022 should focus on the unique nature of their businesses, so says consultant Matthew Mable of Surrender. Restaurant teams should understand and be able to articulate without hesitation what makes the operation unique. The restaurant operations should also focus on innovation and be able to quickly point to them.
• Impossible Foods opened its first plant-based restaurant concept. The vegan food giant partnered with Daug Haus to launch a virtual brand going to market as The Impossible Shop. The new concept will feature a menu of the company’s plant-based meat products in a delivery-only format.
• Restaurateur Tilman Fertitta has put an end to taking his company public. Fertitta Entertainment Inc., the parent company of the Golden Nugget casinos and the Landry’s restaurant group, agreed to pay as much as $33 million to end a planned merger with Fast Acquisition Corp., a special purpose acquisition company formed last year.
• Should insurers have to cover restaurants’ losses due to pandemic-related shutdowns ordered by state and local governments? No, says a sweeping ruling by the 7th U.S. Circuit Court of Appeals. This upholds decisions made by lower courts that said revenue losses attributed to state or local government-directed shutdowns are not covered by business interruption insurance. There are still a number of similar cases pending.
• Starbucks earned a split decision on whether to unionize. Employees in one Buffalo, N.Y., Starbucks location voted 19-8 in favor of having a union represent them. The results were different in another Buffalo location, where workers voted 12-8 to not have a union represent them. The vote at another area Starbucks location remains inconclusive. Starbucks has 235,000 employees spread across 9,000 locations. While the Buffalo vote focused on roughly 100 employees across several locations, even one Starbucks location voting to unionize represents a pretty significant development that bears watching to see if other stores in other parts of the country follow suit.
• US Foods was named a 2021 Chicago Innovation Award. The company was awarded the Accenture Corporate Innovator Award, which celebrates a large corporation for its commitment to innovation. US Foods is one of 20 Chicago Innovation Award winners selected from more than 425 nominations.
• Growth Chains: Another Broken Egg Cafe entered the Arizona market by opening a location in Gilbert. Black Rifle Coffee Company opened a franchise-operated location in Midland, Texas. The veteran-founded company now has five Texas locations. Dave’s Hot Chicken opened a location in Port Hueneme, Calif. Franchisee the DAMM Fine Chicken Company intends to add Dave’s Hot Chicken locations throughout the Central Valley, Central Coast and Sacramento areas of California. FAT Brands opened a co-branded Fatburger and Buffalo’s Express in Greenbrier, Ark. The multiconcept operator also inked a deal to enter Libya with 10 franchised locations. The new stores will consist of five co-branded Johnny Rockets and Hurricane Grill & Wings locations and five co-branded Fatburger and Buffalo’s Express restaurants, which will open over the next three years.