Restaurant Industry Performance - A Snapshot of YTD 2012 - edition 003 | October 2012
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Restaurant Industry Performance
A Snapshot of YTD 2012
edition 003 | October 2012Facts about America’s leading industry
Restaurants make a difference
Very few people realize the impact that America’s Restaurant Industry has on the overall American economy. So we
thought we would dedicate this Edition of the MNCG Newsletter to identifying a few facts you should know about
the industry that not only helps fuel the US economy but also fuels the Marlin Network economy as well.
First, the economic impact of the restaurant industry on the U.S. economy was $1.8 trillion in 2011. In the age of
talking about trillions when we talk about the national debt, it is nice to highlight a “trillion” in a positive way.
This impact is driven through 970,000 foodservice locations that will contribute $632 Billion in gross
retail revenues for 2012, which will account for 4% of our nation’s Gross Domestic Product (GDP).
Another fact that most people don’t know is that the restaurant industry accounts for 10% of the American
workforce, with 12.9 million people employed. Plus since 2001 the restaurant industry has created 1.5 million new
jobs. That’s “jobs created”, again pretty significant in the times we find ourselves in. Projections are that restaurant
employment will grow by another 1.4 million jobs over the next decade to a level of 14.3 million jobs by 2022.
To put our restaurant industry into a global perspective, U.S. Restaurant sales are larger than 90% of the
world’s economies.
Page 2A key driver of career opportunities and America’s entrepreneurial spirit
The restaurant industry is also where many Americans get their start. One in three Americans get their first job in
the restaurant business and half of all adults have worked in the restaurant business at some point in their lives.
One-half, now that is amazing. No other single industry can make that claim!
• 93% of all restaurants have less than 50 employees and 7 out of 10 commercial eating & drinking
establishments have only one location, so contrary to what you might think, our restaurant industry is a
“small business, business”.
• 80% of current restaurant owners started in the business in an “entry-level” position.
• 57% of first-line supervisors and managers of food preparation are women.
- 15% are Hispanic
- 15% are African-American
• Number of women-owned restaurant operations rose 50% between 1997 and 2007.
- African-American-owned operations jumped 188%
- Hispanic-owned restaurants climbed 80%
- Asian-owned increased 60%
• The restaurant industry also employs more minority managers than any other industry in America.
Page 3Restaurants are critical to our daily lives
The restaurant industry is integral to people’s lives. In fact it would be very difficult for the majority of our
population to go through a day without restaurants. Whether as a place to celebrate a special occasion, a spot to grab
an early morning meal or a cup of coffee, or just as a place to meet with friends or colleagues over a lunch or dinner,
America’s restaurants play a major role in people’s lives.
• Restaurant industry sales average $1.7 Billion per day
- More than 50% of America’s population eat at an away-from-home food or beverage venue each day
• The average household spends $2,505 annually on food away from home
• Each full-time (non-supervisory) restaurant employee generates $81,687 in revenue each year
Consumers are currently broken down into 3 distinct categories based upon our Nation’s current economic situation:
Optimistic Consumers (21% of the Fiscally Cautious (42%) adults Hunkered-Down (37%) types
population) are confident in their have average incomes of $63,800 have the lowest annual incomes
financial situation and have not and say they are taking a wait- at $49,800 and they are very
cut back on their spending. and-see approach and have cut concerned about the economy
• Not surprisingly this group back somewhat on spending and have cut back significantly
has the highest average annual until the economy improves. on spending.
household income of $72,600.
These different consumer spending categories approach the “restaurant opportunity” slightly differently:
Optimistic Consumers Fiscally Cautious Hunkered-Down
in a typical month access
• 7.8 visits per month to QSR • 4.3 to QSR
foodservice:
• 5.0 to FSR • 2.5 to FSR
• 7.9 times per month it is a
QSR/Fast-Casual selection
• 6.2 in Full-Service
So you can see for these data that full-service formats are adversely affected as consumer confidence in the economy
declines and at the point that “hunker-down” becomes a consumer’s mind-set, all foodservice venues begin to suffer
significantly.
However, one statistic that remains constant with all types of consumers regardless of their economic
circumstances is their desire to eat out:
97% of Optimistics say that they 93% of Fiscally Cautious And 89% of Hunkered-Down
enjoy eating out consumers do the same consumers still indicate that they
like to eat out in restaurants
Page 4Trends consumers are embracing in restaurants
As in other mainstream consumer-focused businesses, restaurant patrons are embracing “technology” to enhance
their food & beverage experiences.
36% of adults recently surveyed indicated that they have used the Internet
to search information about restaurant foods and menus
52% of adults say they would use an electronic payment system at their
table in FSR venues if it was offered
38% will use a Smartphone application in QSR if it is available
If a self-service ordering terminal were offered by QSR to consumers, then
41% indicate that they would likely use this service
And finally, 28% of adults are more likely to pick a restaurant based upon
social media such as Facebook or Twitter.
Hopefully these facts about restaurants will help you better appreciate the magnitude of the impact that the
restaurant industry has on the overall financial wellbeing of our Country and the importance that consumers place
on the ability to access the food, service and social outlet that restaurants provide to them each and every day.
The Marlin Network Consulting Group. | October 2012 Page 5You can also read
