Dealing with ongoing increases in food and labor expenses, restaurant operators are directing their focus toward enhancing sales and safeguarding profits by heavily investing in technology, training, and marketing, as indicated by a fresh survey conducted by Restaurant365.
The comprehensive restaurant management platform surveyed close to 3,700 leaders in the restaurant industry across various sectors such as quick service, fast casual, casual dining, and fine dining. Results showed that while 80% of participants noticed a surge in food costs and 80% experienced a rise in labor costs, the rate of escalation has slightly moderated compared to the previous year’s end.
Despite these hurdles, 49% of restaurant executives reported an increase in sales for the year 2024, while 34% observed a decline. Looking forward, sales emerged as the primary concern for 38% of those surveyed, followed by the challenges of recruiting and retaining staff (24%), labor expenditures (18%), and food costs (16%).
To navigate these economic obstacles, restaurant operators are honing in on several pivotal areas:
- Technology: Almost 40% of responders are planning to allocate resources towards sales, marketing, and associated technologies for the remainder of the year.
- Training: Over 55% of operators are dedicating one to two hours weekly to employee training, showcasing a strong preference for on-the-job learning.
- Revenue Generation: The top priorities for numerous restaurants involve expanding catering, hosting special events, and improving takeout/delivery services.
- Sustainability: A growing number of operators are incorporating initiatives such as tracking food wastage and enhancing forecasting methods to diminish their environmental impact.
“Having spent over a decade developing technology to support the growth of restaurants, we’ve witnessed many industry cycles and understand how adaptable restaurant leaders are to changes in market forces,” remarked Restaurant365 CEO and co-founder Tony Smith in a press release concerning the survey. “We are dedicated to enhancing our product offerings to furnish the necessary tools for them to evolve into profitable and flourishing restaurants in the future.”
The survey also underscored the significance of sustainability, with 68% of respondents indicating active efforts to decrease their environmental footprint.
