From the National Restaurant Association, national survey of 3,000 restaurant operators conducted in November 2022
Elevated costs continue to negatively impact restaurants
Elevated costs across all parts of the operation are creating significant challenges for restaurants. Restaurant operators took a number of actions in recent months as a result of higher costs:
➤ 87% of restaurants increased menu prices, while 59% changed the food and beverage items that it
offered on the menu
48% of restaurants reduced hours of operation on days that it is open, while 32% closed on days that it would normally be open
38% of operators say they postponed plans for expansion
➤ 35% of operators say they stopped operating at full capacity
32% of restaurants cut staffing levels, while 19% postponed plans for new hiring
➤ 21% of operators say they incorporated more technology into their restaurant
13% of operators say they eliminated third-party delivery
Profitability is expected to remain challenged in 2023
Despite the wide variety of mitigating actions taken to address higher costs, a strong majority of restaurant operators do not expect their profitability to improve in 2023. Only 16% of operators think their restaurant will be more profitable in 2023 than it was in 2022. 50% think they will be less profitable in 2023, while 34% expect their profitability to remain about the same.
Restaurants will continue expanding payrolls – unless business conditions deteriorate
Although the industry added back many of the jobs lost during the pandemic, a majority of restaurants remain understaffed. 62% of operators say their restaurant currently does not have enough employees to support its existing customer demand.
79% of operators say their restaurant currently has job openings that are difficult to fill.
Most restaurant operators will be actively looking to boost staffing levels in 2023. 87% of restaurant operators say they will likely hire additional employees during the next 6-12 months if there are qualified applicants available.
At the same time, restaurant operators will continue to balance staffing needs with business conditions. 57% of operators say they would be likely to lay off employees during the next 6-12 months if business conditions deteriorate and the economy enters a recession.
Supply chain disruptions continue to impact restaurants
Like many sectors in the economy, restaurants continue to be impacted by disruptions in the supply chain. 96% of operators say their restaurant experienced supply delays or shortages of key food or beverage items during the past 6 months.
It isn’t just food and beverage items that are being impacted. 78% of operators said they experienced supply delays or shortages of equipment or service items in recent months.