Restaurant sales are forecast to exceed $1.1 trillion in sales this year, marking a new milestone for the industry that will employ over 15.7 million people in the United States by the end of 2024. This is all according to the National Restaurant Association 2024 State of the Restaurant Industry Report(Opens in a new window).
"With more than $1 trillion in sales expected this year, the state of the restaurant industry is strong thanks to the agility of its operators and employees,” said Michelle Korsmo, president and CEO of the National Restaurant Association.
“As our report shows, restaurants are finding ways to adapt to the challenges of increased food costs and supply chain disruption. Restaurants have responded well to customers’ desire to have more opportunities to enjoy restaurant meals, which continues to grow sales, create employment opportunities, and foster a strong sense of community.”
Consumers’ affinity for technology in restaurants varies, and as a result, operators are strategically deciding how to incorporate technology into the experience. For full-service restaurants, nearly half (46 percent) of adults think technology has a positive impact, and this number weighs heavily towards younger consumers (64 percent of Gen Z and 66 percent of Millennials). Similarly, this group is more likely to want more technology options, according to the research.
These preferences can help operators make informed decisions on where and how to invest. In 2023, just under half (48 percent) of operators made technology investments to enhance the customer experience but 60 percent plan to make an investment in 2024. The areas where consumers say technology would have the most positive impact on their personal experience include options that make ordering and paying easier and faster.
If consumers are somewhat split on technology, they can agree on the value of a special deal or discount, with seven in ten adults saying they often look for a daily special or discount. Customers (85 percent) are more flexible about when they dine if it comes with a deal, and 84 percent said they’d take advantage of deals offered for dining at off-peak times. Further, 75 percent of adults would opt for smaller-sized portions for a lower price—a trend that can help restaurants curb food waste and improve profits.
To further fuel customer retention, the data suggests focusing on loyalty and rewards programs. Customers prefer to see this type of program on a smartphone app, further enforcing the need for technological innovation and creating additional touchpoints between customers and restaurants.
The restaurant and foodservice industry is projected to add 200,000 jobs in 2024, bringing total industry employment to 15.7 million. Between 2024 and 2032, the industry is projected to add 150,000 jobs per year on average, with total staffing levels reaching 16.9 million by 2032.
Despite this expansion, 45 percent of operators say their restaurant doesn’t have enough employees to support existing customer demand. Operators looking for the necessary support are turning to the gig economy and technology. One in four operators said using gig workers to fill in staffing will become more common in their segment in 2024, and nearly half (47 percent) of operators said the use of technology and automation to help with the current labour shortage will become more common.
