By Dale J. Venturini
President/CEO, Rhode Island Hospitality Association
“For last year's words belong to last year's language and next year's words await another voice. And to make an end is to make a beginning." -T.S. Eliot, Nobel laureate in literature
Congratulations, 2009 is underway and we’ve made it through one of the toughest economic years in recent times. I’m not sure about you – but I am absolutely glad to say good bye to 2008. There wasn’t a single industry that remained unscathed by the impacts of Wall Street, unemployment, the housing market, and previously exorbitant gasoline prices.
The mantra that we all need to apply to this year is: cooperation, communication and collaboration. It has never been more important than now for all of us to work together to help shore up the base of our industry. There are some significant cracks in the foundation all across our nation and while our natural inclination is to huddle tight and protect our own, we need to work together – across the board – in order to not only survive, but to also thrive.
According to the National Restaurant Industry’s 2009 Forecast, every move matters. From marketing and menu innovation, to rising costs and consumer needs, every step along the way is critical as we move into the new year ahead.
The NRA projects that the restaurant industry is in fact expected to grow. Total restaurant-industry sales are forecast to rise to nearly $566 billion – a projected rise of 2.5 percent. What does that mean in real terms? Well, with adjustments for inflation, the industry’s sales are projected to decline 1.0 percent in 2009. This decline would mark the second consecutive year of real-sales declines – which is the first such occurrence in the 40 years that the NRA has been tracking industry sales.
But, it’s not all bad news. The NRA also reports that consumers remain strong in their desire to frequent restaurants. In fact, 45 percent of adults surveyed say restaurants are an essential part of their lifestyle, although 35 percent report not going out as often as they wish due to the economy.
However, the industry is still among the Nation’s strongest. And, in a time when it seems every industry is looking for a helping hand from the government, including the big three automakers, our industry still stands on its own two feet. This year, restaurant and foodservice locations are expected to hit 945,000 outlets and provide employment opportunities for 13 million people. By comparison, the US Auto industry employs approximately two million people from manufacturing, to parts, to dealership positions.
What can you do on a local level to entice patrons into your establishments? Well, first and foremost, do not take the path of least resistance. Many restaurants are offering half-price and other discounted gift cards in 2009, as a means to get an early cash infusion. While your first quarter will look good, you will NEVER recover from this loss and in a year where every move does matter, you need to be smart about how you discount.
The top trend the NRA sees is an expanded focus on value, in conjunction with operational improvements that cut costs without taking away from the dining experience. This doesn’t mean that folks have an eye to cheap, unhealthy foods – quite the contrary. In fact, 2009 will bring an increased demand for more healthful food choices, small plates, organics and locally-grown produce. Restaurants that can create value-focused menus that incorporate components of local produce with a focus on smaller Tapas-style plates should do well.
Our industry is definitely a powerhouse and it’s because of the shared cooperation, communication and collaboration among operators, owners and managers. We all need to understand that the rising tide floats all boats. And, as 2009 will surely demonstrate, there has never been a more critical time to have that tide on the rise.
President/CEO, Rhode Island Hospitality Association
“For last year's words belong to last year's language and next year's words await another voice. And to make an end is to make a beginning." -T.S. Eliot, Nobel laureate in literature
Congratulations, 2009 is underway and we’ve made it through one of the toughest economic years in recent times. I’m not sure about you – but I am absolutely glad to say good bye to 2008. There wasn’t a single industry that remained unscathed by the impacts of Wall Street, unemployment, the housing market, and previously exorbitant gasoline prices.
The mantra that we all need to apply to this year is: cooperation, communication and collaboration. It has never been more important than now for all of us to work together to help shore up the base of our industry. There are some significant cracks in the foundation all across our nation and while our natural inclination is to huddle tight and protect our own, we need to work together – across the board – in order to not only survive, but to also thrive.
According to the National Restaurant Industry’s 2009 Forecast, every move matters. From marketing and menu innovation, to rising costs and consumer needs, every step along the way is critical as we move into the new year ahead.
The NRA projects that the restaurant industry is in fact expected to grow. Total restaurant-industry sales are forecast to rise to nearly $566 billion – a projected rise of 2.5 percent. What does that mean in real terms? Well, with adjustments for inflation, the industry’s sales are projected to decline 1.0 percent in 2009. This decline would mark the second consecutive year of real-sales declines – which is the first such occurrence in the 40 years that the NRA has been tracking industry sales.
But, it’s not all bad news. The NRA also reports that consumers remain strong in their desire to frequent restaurants. In fact, 45 percent of adults surveyed say restaurants are an essential part of their lifestyle, although 35 percent report not going out as often as they wish due to the economy.
However, the industry is still among the Nation’s strongest. And, in a time when it seems every industry is looking for a helping hand from the government, including the big three automakers, our industry still stands on its own two feet. This year, restaurant and foodservice locations are expected to hit 945,000 outlets and provide employment opportunities for 13 million people. By comparison, the US Auto industry employs approximately two million people from manufacturing, to parts, to dealership positions.
What can you do on a local level to entice patrons into your establishments? Well, first and foremost, do not take the path of least resistance. Many restaurants are offering half-price and other discounted gift cards in 2009, as a means to get an early cash infusion. While your first quarter will look good, you will NEVER recover from this loss and in a year where every move does matter, you need to be smart about how you discount.
The top trend the NRA sees is an expanded focus on value, in conjunction with operational improvements that cut costs without taking away from the dining experience. This doesn’t mean that folks have an eye to cheap, unhealthy foods – quite the contrary. In fact, 2009 will bring an increased demand for more healthful food choices, small plates, organics and locally-grown produce. Restaurants that can create value-focused menus that incorporate components of local produce with a focus on smaller Tapas-style plates should do well.
Our industry is definitely a powerhouse and it’s because of the shared cooperation, communication and collaboration among operators, owners and managers. We all need to understand that the rising tide floats all boats. And, as 2009 will surely demonstrate, there has never been a more critical time to have that tide on the rise.
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