THE YEAR AHEAD IS EXPECTED TO BE ANOTHER tough one for the restaurant industry as the U.S. recession continues to curtail consumer spending.
Operators, however, are a tenacious bunch. In Nation’s Restaurant News annual Outlook, savvy operators from across the country share both their expectations for 2009 and the strategic plans they are employing to spark sales, contain costs and position their operations for future growth.
In addition, data from the National Restaurant Association provides an industrywide sales overview as well as state-by-state projected growth rates covering employment, disposable income and population. Estimated state restaurant sales for 2008 and 2009 also are included. The Outlook overview starting on page 1 highlights results from an exclusive Nation’s Restaurant News survey revealing operators’ projections on commodity costs, sales projections and menu price increases. Altogether, the information included in the section provides an economic survival guide for 2009.
REGIONS RANKED BY 2009 PROJECTED RESTAURANT SALES
SALES ($ BILLIONS)* | ||
1 | SOUTHEAST | $106.19 |
2 | MIDWEST | 90.21 |
3 | WEST | 79.40 |
4 | SOUTHWEST-MOUNTAIN | 68.09 |
5 | MID-ATLANTIC | 67.77 |
6 | NEW ENGLAND | 23.44 |
NOMINAL % CHG. | REAL** % CHG. | ||
1 | SOUTHWEST-MOUNTAIN | 3.6% | 0.0% |
2 | WEST | 2.7 | -0.9 |
3 | SOUTHEAST | 2.4 | -1.2 |
4 | MIDWEST | 2.0 | -1.6 |
5 | NEW ENGLAND | 1.9 | -1.7 |
6 | MID-ATLANTIC | 1.8 | -1.8 |
GROUP I—COMMERCIAL RESTAURANT SERVICES1 | 2008 PROJECTED SALES ($000) | 2009 PROJECTED SALES ($000) | ’08-’09 PERCENT CHANGE | ’08-’09 PERCENT REAL** CHANGE |
Full-service restaurants2 | $181,063,362 | $182,873,996 | 1.0% | -2.5% |
Limited-service (quick-service) restaurants3 | 157,456,626 | 163,754,891 | 4.0 | 0.4 |
Cafeterias, grill-buffets and buffets4 | 5,021,325 | 4,940,984 | -1.6 | -5.2 |
Social caterers | 6,276,708 | 6,402,242 | 2.0 | -1.6 |
Snack and nonalcoholic beverage bars | 20,088,885 | 19,926,620 | -0.8 | -4.4 |
TOTAL EATING PLACES | $369,906,906 | $377,898,733 | 2.2% | -1.4% |
Bars and taverns | $16,632,146 | $17,097,846 | 2.8 | -0.4 |
TOTAL EATING-AND-DRINKING PLACES | $386,539,052 | 394,996,5795 | 2.2% | -1.3% |
Manufacturing and industrial plants | $7,258,371 | $7,373,927 | 1.6% | -2.0% |
Commercial and office buildings | 2,543,250 | 2,606,831 | 2.5 | -1.1 |
Hospitals and nursing homes | 4,511,960 | 4,818,773 | 6.8 | 3.2 |
Colleges and universities | 11,912,863 | 12,913,543 | 8.4 | 4.5 |
Primary and secondary schools | 5,255,883 | 5,602,771 | 6.6 | 3.0 |
In-transit restaurant services (airlines) | 2,022,224 | 1,949,523 | -3.6 | -7.1 |
Recreation and sports centers | 4,752,369 | 4,847,417 | 2.0 | -1.5 |
TOTAL MANAGED SERVICES | $38,256,920 | $40,112,785 | 4.9% | 1.2% |
Hotel restaurants | $26,931,904 | $27,551,338 | 2.3% | -1.2% |
Other accommodation restaurants | 396,145 | 398,522 | 0.6 | -3.0 |
TOTAL LODGING PLACES | $27,328,049 | $27,949,860 | 2.3% | -1.2% |
Retail-host restaurants7 | $26,248,943 | $27,590,792 | 5.1% | 1.5% |
Recreation and sports8 | 13,170,911 | 13,331,844 | 1.2 | -2.3 |
Mobile caterers | 1,014,868 | 1,013,671 | -0.1 | -3.7 |
Vending and nonstore retailers9 | 10,844,637 | 10,969,351 | 1.2 | -1.7 |
TOTAL—GROUP I | $503,403,380 | $515,964,882 | 2.5% | -1.0% |
Employee restaurant services11 | $463,150 | $442,686 | -4.4% | -7.5% |
Public and parochial elementary, secondary schools | 5,916,285 | 6,083,317 | 2.8 | -0.8 |
Colleges and universities | 5,811,296 | 5,749,996 | -1.1 | -5.3 |
Transportation | 1,865,415 | 1,852,595 | -0.7 | -4.0 |
Hospitals12 | 14,482,181 | 15,114,014 | 4.4 | 1.4 |
Nursing homes, homes for the aged, blind, orphans and the mentally and physically disabled13 | 7,200,391 | 7,387,601 | 2.6 | 0.3 |
Clubs, sporting and recreational camps | 9,041,143 | 9,091,877 | 0.6 | -2.9 |
Community centers | 1,963,027 | 2,057,252 | 4.8 | 2.6 |
TOTAL—GROUP II | $46,742,888 | $47,779,338 | 2.2% | -1.0% |
TOTAL—GROUPS I AND II | $550,146,268 | $563,744,220 | 2.5% | -1.0% |
Officers’ and NCO clubs (open mess) | $1,397,245 | $1,460,122 | 4.5% | 1.0% |
Military exchanges | 629,532 | 653,455 | 3.8% | 0.2% |
TOTAL—GROUP III | $2,026,777 | $2,113,577 | 4.3% | 0.8% |
GRAND TOTAL | $552,173,045 | $565,857,797 | 2.5% | -1.0% |