The restaurant industry is one of few sectors of the global economy where growth usually slows in late 2020. Many operators are preparing for 2020 to be a slow year as customers transition from holiday shopping to the all important annual holiday period. For operators, slow sales do not usually spell doom and gloom, but they can have a detrimental effect on investment and planning. While revenue is flat or forecast to remain flat in some of the world's largest cities, such as London and New York, such sales do not represent the total revenue generated by restaurants. Moreover, such revenues are influenced by tourists rather than local citizens. Find out more about HEALTHCARE
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In a report prepared by The Boston Consulting Group, titled "The Restaurant Industry In America: What's Working? What's Not? In the Americas", the BCP noted that despite lower sales and fewer tourists, there are still three million jobs in the restaurant industry in the United States. Although the industry may be facing headwinds from an uncertain economic outlook, the BCP said that it would continue to grow at a healthy rate through at least the next five years.
Growth in the mining sector is helped by consumers continuing to have money to spend. The BCP also pointed out that increased competition among restaurants, driven by improved service and better food choices, has forced consumers to spend more money at restaurants during the holidays. In fact, the report indicates that there is so much money tied up in the dining experience at holiday time that many diners are willing to pay for value meal deals. Such deals boost profitability for restaurant operators and help lift the flagging economy of the nation. It also boosts consumer confidence in the strength of the American dollar, which helps support economic recovery. Visit this link to find a DELIVERY-ONLY RESTAURANT
However, the US restaurant industry faces additional challenges beyond the impact of economic factors on growth. The recent spate of restaurant closures is an illustration of this. According to the BCP, there is now a six percent unemployment rate in the restaurant industry. This is even as more restaurants are closing during slow times in the business cycle as they deal with rising costs. Moreover, even as new restaurants open, many of them are facing competition from fast-food chains that use less-expensive labor and other innovations to lure customers. As a result, diners are increasingly turning away from full-service restaurants and instead opting for eat-in, casual restaurants where they can get value for their money.
Moreover, the rising price of oil is having a significant effect on the profitability of the restaurant industry. The BCP notes that the combination of rising oil prices and decreasing consumer confidence in the US economy is having a profound effect on consumer spending. The Restaurant Industry Association of America says that the slowdown in restaurant sales is "shocking," and the industry "need [s] to take steps to remedy the situation." Some restaurant owners and operators are seeking ways to combat the problem, including the possibility of plant-based dining as a viable solution.
Plant-based foods can provide the same benefits that traditional eating experiences provide. These foods offer a wide range of dietary choices to accommodate a variety of consumers. Moreover, restaurant owners and operators no longer need to use traditional meats, breads, and beverages in their menus. These changes have broadened the customer base that restaurateurs can serve. Additionally, restaurant owners and operators no longer have to spend significant amounts of money to attract and retain customers because the benefits of these types of changes are now within reach.
To know more, check out http://www.washingtonpost.com/business/2020/09/17/virtual-ghost-kitchen-restaurants/