National Restaurant Association Announces Record Sales Projected In
Year Ahead for Nation's Largest Private-Sector Employer
Restaurant Industry Forecast: Restaurants to reach record $476 billion
in sales next year
December 14, 2004
Contact: Katharine Kim 202-331-5939, Brad Dayspring 202-331-5902
(Washington, DC). Restaurant industry sales are expected to reach a record
$476 billion in 900,000 restaurant locations in 2005, according to the
National Restaurant Association's 2005 Restaurant Industry Forecast. The
projected annual sales would mean a solid 4.9 percent increase over last
year and a total economic impact of over $1.2 trillion, highlighting
the restaurant industry's critical role as a job creator in the nation's
economy.
"American consumers will spend almost 47 percent of their food dollar
in the restaurant community in 2005," said Steven C. Anderson, president
and chief executive officer of the National Restaurant Association. "The
restaurant industry will serve as a driving force in our nation's economy
by providing jobs to 12.2 million employees and continue providing a social
oasis and convenience to communities nationwide as it posts its 14th consecutive
year of real growth next year."
The Forecast predicts that the U.S. restaurant industry which
created, on average, about 270,000 new jobs per year during the last 10
years is on track to add 1.8 million new jobs during the next 10
years. On a typical day, the industry will post average sales of $1.3
billion.
"The restaurant industry in the United States reaped the benefits
of the robust economic growth in 2004. Steady gains in indicators such
as personal disposable income and jobs continue to bode well for restaurants
in 2005, despite the anticipated challenges of higher energy and food
costs," said Hudson Riehle, senior vice president of Research and
Information Services.
Top Trends to Watch
Some of the key trends that the Association predicts for 2005 include:
- Greater use of technology and worker training as a means to boost
productivity and efficiency. More than two-thirds of restaurant operators
including three out of four quickservice operators say
they are more productive than they were two years ago.
- Continued increased focus on healthy lifestyles and restaurants providing
customers with balance, choice and customization. Surveys of both fullservice
and quickservice operators indicate that entrée salads have increased
in popularity more than many other menu items.
- Increased upgrades and improvements in décor with the help
of new tax-depreciation rules. More than 54 percent of quickservice
operators surveyed said they would dedicate a higher portion of their
budget to remodeling in 2005, highlighting the focus on using ambiance
and interior design to attract customers.
- The sophistication of Americans' palates and knowledge of food. National
Restaurant Association research indicates that 25 percent of diners
can be categorized as "adventurous," and are enthusiastic
about trying new foods and ingredients. Most are between 30 and 60 years
old, are educated and more likely to live in larger urban areas, and
are the most active restaurant diners
Fullservice/Limited-Service Segments
Among the major segments, sales at fullservice restaurants are projected
to reach $164.8 billion in 2005, an increase of 5.0 percent over 2004,
for a real growth rate of 2.2 percent. Fullservice operators are optimistic
about the economy, as a strong 75 percent of fine-dining operators,
69 percent of casual-dining operators and 61 percent of family-dining
operators indicate that they expect their sales in 2005 to be higher
than in 2004.
Limited-service, or quickservice, restaurants are projected to register
sales of $134.2 billion in 2005, a gain of 4.7 percent over 2004. Consumer
demand for convenience and value will continue to drive growth for this
segment, while operators face stiffer competition from grocery and convenience
stores. Both tableservice and quickservice restaurants will benefit from
continued rebounds in international and domestic travel and tourism, which
are projected to rebound to pre-9/11 volume levels.
Perspective from Across the Country
Economic growth is expected in all nine U.S. regions, with all regions
also projecting job growth in 2005. The five top regions in terms of sales
growth remain in the South and the West. These regions continue to have
the fastest growth in local economies, disposable income and population.
Specifically, the Mountain region will again lead the nation with a projected
sales growth of 6.5 percent.. The state posting the highest restaurant-sales
volume in 2005 will be California, with projected restaurant sales of
$51.5 billion.
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