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The 2021 State of the Restaurant Industry Report from the NRA has been released and offers insight into the impact of Covid-19 on the restaurant industry as well as a look at the current state of technology, off-premises, labor, and menu trends across segments. The data is based on a survey of 6,000 restaurant operators and consumer preferences from a survey of 1,000 adults.
Key findings on how coronavirus affected the restaurant industry include:
State and local mandates forced operators to make developments to streamline or enhance off-premises and contactless capabilities, and many restaurants across all segments have become more efficient as a result. The pandemic induced a widespread adoption of technology and off-premises use among groups that may not have otherwise engaged in off-premises. Takeout and delivery have become a part of people's routines with 68% of consumers more likely to purchase takeout from a restaurant than before the pandemic and 53% of consumers that say takeout and delivery is essential to the way they live. Other key takeaways include:
Of restaurants that closed for good in 2020, the majority were well-established businesses and fixtures in their communities. These operators had been in business, on average, for 16 years, and 16% of them had been open for at least 30 years. Additional data on these businesses include:
The restaurant and foodservice industry were projected to provide 15.6 million jobs in 2020 representing 10% of all payroll jobs in the economy. The impact of the pandemic has caused staffing levels to fall across all restaurant and foodservice segments with restaurant employment below pre-pandemic levels in 47 states and D.C. Key figures on the restaurant workforce include:
While restaurants continue to optimize and streamline operations, their menus prove no exception with 63% of fine dining operators and half of casual and family dining operators saying they have fewer items on the menu than before the pandemic. Consumers are equally influenced to choose one restaurant over another if the restaurant offers a good selection of comfort foods and/or dishes on the healthier side, but the availability of diet-specific fare such as vegan or gluten-free plays a lesser role in restaurant-choice criteria. The availability of alcohol to go with takeout orders, however, is an influence in restaurant choice.
Restaurants are meeting these demands with 1 in 5 family and casual dining operators adding comfort items and 7 in 10 full-service operators adding alcohol to go since March 2020. Consumers are also finding new ways to enjoy their favorite restaurants such as embracing bundled meals, restaurant subscription services, and meal kits. Key data points on food and beverage trends include:
Restaurants are an integral part of our social fabric, and 6 in 10 adults say restaurants are an essential part of their lifestyle. In late April 2020, 83% of adults said they were not eating on-premises at restaurants as often as they'd like, a big jump from the 45% reported in January 2020. Baby boomers really want to return to restaurants, beating out Gen Z adults and millennials who say they are not eating on-premises at restaurants as often as they'd like. Additional data that validate pent-up demand include:
Click here for more information about the 2021 State of the Restaurant Industry Report.