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This Week in Foodservice

Expect a Moderately Good Year for Restaurants Unless Rogue Factors Provide a Disruption

The National Restaurant Association projects a moderately good year for 2020. Restaurants hired 50,000 employees in February. Dine Brands will test ghost kitchens. Fogo de Chão does delivery its own way. Starbucks reopens stores in China.

The National Restaurant Association projects 2020 to be the eleventh year in a row that industry sales will increase with a forecast for sales to hit $899 billion. This represents a 4% rise in sales or a 1.2% increase when adjusted for inflation. Full-service restaurant sales will grow 3.6% nominally or 1% in real terms. Sales at fast-food restaurants will increase 4.4% or 1.5% in real terms. Noncommercial operations are forecast to grow 3.7% or 0.8% when adjusted for inflation.

Looking ahead, the NRA predicts total industry sales will reach $1.2 trillion by 2030. Factors fueling this growth include consumer optimism, a strong economy and the growth of takeout and delivery meals.

The NRA believes the biggest challenges the industry will face revolve around labor, including recruiting, hiring, training, compensating and retaining employees. It is estimated industry employment will reach 15.6 million this year and employ 17 million workers by 2030.

The major question hanging over the foodservice industry (and everyone else’s) is trying to determine the impact of the coronavirus. Some economists refer these situations as “rogue factors.” They roar in, may disrupt everything, but usually don’t last very long.

Note: The data above is courtesy of The National Restaurant Association’s 2020 State of the Industry report.

 

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For details and same-store sales of other chains, please click here for the latest Green Sheet.

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