USA | Restaurant365, the leading all-in-one restaurant enterprise management platform, has released findings from its midyear industry survey.
Restaurant365 found that leaders representing nearly 3,700 QSR, fast casual, casual dining, and fine dining locations shared 2024's top challenges and opportunities alongside plans for investment in back-of-house technology, increased sales, and team training, benefits, and support.
Participants reported continued food and labour cost increases with slight shifts compared to the end of 2023. So far this year, 80 percent said labour costs increased, with 64 percent noting it at one percent to five percent. Those totals are down from the end of 2023 when 89 percent said labor costs increased, with 54 percent reporting one percent to five percent. Meanwhile, 80 percent of operators said food costs are up, with 51 percent saying one percent to five percent and 40 percent putting the increase at six percent to 14 percent.
Looking at potential top challenges for the rest of the year, 38 percent identified sales as the top concern, 24 percent said recruiting and retaining staff, 18 percent said labour costs, and 16 percent said food costs.
While sales were a concern, 49 percent of restaurant leaders reported increased sales in 2024, and 34 percent reported a drop.
With restaurant leaders expecting challenges, many are adjusting priorities to preserve profitability and grow revenue.
"After more than a decade of building technology to help restaurants thrive, we've seen many cycles of the industry and know how resilient restaurant leaders are adjusting to changes in market dynamics," said Restaurant365 CEO and Co-founder Tony Smith.
"We're committed to investing in our product to provide the helpful tools they need to become the profitable and successful restaurant of tomorrow."
As the landscape changes, 39 percent of leaders said they're prioritising investments in sales, marketing, and related technologies for the rest of 2024. Another 37 percent are focused on staff enhancements, including additional training, recruitment, salaries, and other benefits.
With a heightened focus on team training, operators are also looking to revamp how they skill up teams. More than 55 percent of respondents said employees spend one to two hours a week training. The largest percentage, 40 percent, rely on shoulder-to-shoulder training. Only 18 percent of survey respondents said they used any form of digital or mobile training.
At the same time, restaurant leaders continue to explore ways to generate additional revenue while cutting Prime Costs. 37 percent said they're expanding catering operations. Another 25 percent said they were investing in special events and one-off promotions, and 24 percent said they were prioritising takeout and delivery operations.
Finally, restaurant leaders are doubling down on sustainability as an investment in their business and the future. More than 68 percent reported implementing sustainability practices. More than 39 percent said they focused on food waste tracking, 21 percent are investing in improved forecasting to optimise ordering, and 16 percent are enhancing training to prevent employee-level waste.
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