Restaurants Feeling Effects of Rising Fuel Prices

According to an article published by the National Restaurant Association, a strong majority of restaurant operators feel that the recent increase in gas prices have negatively impacted their business.

With gas prices on the rise, restaurant owners are concerned that consumers’ disposable income for eating out could be in jeopardy. Operators surveyed said that impacts of rising fuel prices have been felt on both the sales and operational sides of their business. They are seeing an average sales reduction of 5% in their restaurants, and they are seeing higher prices from their supplies – mostly due to fuel surcharges.

Do you feel like your restaurant or bar has been affected by the rising fuel prices?

Five Elements of Restaurant Selection

According to a 2012 Restaurant Industry Forecast, there are five key elements involved with consumers’ decision to choosing which quick service or takeout restaurant to frequent. Those five elements are food quality, value received for price paid, length of time it takes, convenient service/delivery, and convenient ordering options.

80% of people surveyed responded that food quality was their prime motivator in frequenting a restaurant. With more than one million restaurants across the country, the competition for business is growing in intensity. With so many options available, consumers don’t’ feel compelled to return to a restaurant that does not live up to their expectations.

Restaurant Strategies for a Tough Economy

It’s no secret that we are in a less-than-ideal economy at the moment. However, that’s why it is more important than ever for restaurants to promote their services in the most cost-effective way possible. Eating out is a luxury that not all people can manage, therefore it is important for restaurants to make sure they stand out above their competition.

Marketing your restaurant or brand can be difficult to do on a small or nil budget; however with so many free resources available online, it’s certainly not an excuse as to why you are not marketing your business. Restaurants should be actively using free online tools such as Facebook, Twitter, YouTube and blogging websites, if they are not already. There are plenty of topics that can easily be promoted on such sites to gain publicity for your restaurant or bar.

For example:

• New menu selections and product launches
• Promotions for loyal Facebook fans and Twitter followers
• A restaurant remodel
• Community service events
• Charitable donations made
• Celebrating a restaurant’s anniversary
• Holiday and special events marketing
• Personnel promotions

There are also many restaurant-related websites that will help you to market your business with press releases. For more information visit www.restaurantnews.com.

Industry Experts Forecast 2012 Trends

Nation’s Restaurant News posted an article on some of the top trends predicted for 2012. Seven of the restaurant industry’s top trend-watchers weighed in on what they predict for 2012.

Hudson Riehle from the NRA believes that restaurants will benefit from consumers’ pent-up demand, and food costs will remain a huge challenge.

Nancy Kruse from The Kruse Company believes we will continue to see an importance in premiumization, customization and miniaturization.  She also believes that more chains will emphasize the use of real, fresh or local foods.

Bonnie Riggs from The NPD Group says that the fast-casual segment will continue to grow, and better-for-you foods will be desired by more consumers.

Darren Tristano from Technomic Inc believes that comfort foods and home-style foods will be desired by consumers.

John Barone from Marketvision believes that there will be a shortage of quality beef resulting in an increase in beef prices. John also predicts another year of high fuel prices.

Larry Miller from RBC Capital Markets LLC predicts that as food costs remain high, there will be more risk than reward in restaurant stocks. He is also hopeful that late 2012 could benefit from the presidential election.

Steve Caldeira from International Franchise Association believes that franchising will grow in both full-service and quick-service segments. He also predicts that access to capital will remain the number one issue for restaurant owners.

Happy Holiday Sales Predicted for Restaurants

The holiday season is upon us, and it would appear that restaurant sales for the new few months are looking up. Sales in November were up and according to a recent survey, consumers’ restaurant spending plans over then next 90 days jumped by about 7%. This is the largest increase in expectation to spend in over a year, according to an article published by Nation’s Restaurant News.

Restaurants are expected to see the highest increase among consumer sectors, with a projected growth of around 4 percent. Analysts are optimistic that the growth trends will carry over into the first quarter of 2012.

7 Trends for 2012

Technomic, the leading foodservice research and consulting firm, recently published an article containing the seven leading US restaurant trends for 2012. Some of the trends include an increased use of social networking by restaurants, continued focus on local sourcing, consumers wanting more information, and resistance to discounting by operators.

Be sure to check out the link to the article for more information on their research.

More than Minimum Wage

Recent findings indicate that it takes more than money to retain restaurant employees. QSR magazine writer, Jordan Melnick, recently published an article on employee retention in the restaurant industry. While the restaurant industry may be of the largest employers in the country, it also has a reputation for high employee turnover.

Melnick cites successful restaurant owners as saying that the key to employee retention goes beyond money and benefits. Employees want to know that advancement is an option, and they want to be able to see a clearly defined path on how to get to the top. Restaurants that invest money in employee retention and advancement will end up with an increasingly loyal workforce.

Sometimes it is easy to forget that the employee who applied for the dishwashing job, does not necessarily want to wash dishes for the rest of their life. As an employer, anything you can do to encourage employees to move up within your business will benefit both of you in the long run.