As the foodservice industry continues to move towards a full recovery, restaurants are gearing up for a challenging 2023. Restaurateurs are not especially optimistic, with only 16 per cent expecting profits to increase and 50 per cent preparing to lose money next year.
In an effort to boost bottom lines, over 30 per cent have canceled upcoming expansion plans, with 90 per cent worried about continued inflation into 2023. According to Hudson Riehle, SVP of the National Restaurant Association, 2022 ended on a positive note, with elevated customer spending and positive employment growth, but there the numbers statistics show the adjustments the industry has made to accommodate for record-breaking inflation:
- 87 per cent of U.S. restaurants have raised menu prices
- 32 per cent have been closing on days they were once open
- 48 per cent have cut down on the hours they are open
- 32 per cent have eliminated employment positions
Kelly Higginson, chief operating officer at Restaurants Canada, says that we can expect restaurant cheques to continue to rise as we see inflation continue along the road to recovery, with “people making changes to their concepts, or to their menu so that they have fewer cooks in the kitchen.”
According to Canada’s Food Price Report, restaurant prices will continue to rise as businesses continue to struggle with inflation, rising rent, and labour shortages, as the foodservice industry experiences a 46.3 per cent vacancy rate.
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Given this information, the industry seems to be approaching 2023 in a cautiously optimistic fashion, where a ‘planning for the best, but expecting the worst’ attitude is at the forefront.