R365's midyear study reveals increased investments in sales
and marketing, staff, and technology to grow revenue and
margins.
IRVINE,
Calif., Aug. 1, 2024 /PRNewswire/ --
Restaurant365, the leading all-in-one restaurant enterprise
management platform, today released findings from its midyear
industry survey. Restaurant 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.
2024 By the Numbers
Participants reported continued food and labor cost increases
with slight shifts compared to the end of 2023. So far this year,
80% said labor costs increased, with 64% noting it at 1% to 5%.
Those totals are down from the end of 2023 when 89% said labor
costs increased, with 54% reporting 1% to 5%. Meanwhile, 80% of
operators said food costs are up, with 51% saying 1% to 5% and 40%
putting the increase at 6% to 14%.
Looking at potential top challenges for the rest of the year,
38% identified sales as the top concern, 24% said recruiting and
retaining staff, 18% said labor costs, and 16% said food costs.
While sales were a concern, 49% of restaurant leaders reported
increased sales in 2024, and 34% reported a drop.
The Rest of 2024
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% of leaders said they're
prioritizing investments in sales, marketing, and related
technologies for the rest of 2024. Another 37% 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% of
respondents said employees spend one to two hours a week training.
The largest percentage, 40%, rely on shoulder-to-shoulder training.
Only 18% 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 Cost. 37% said
they're expanding catering operations. Another 25% said they were
investing in special events and one-off promotions, and 24% said
they were prioritizing takeout and delivery operations.
Finally, restaurant leaders are doubling down on sustainability
as an investment in their business and the future. More than 68%
reported implementing sustainability practices. More than 39% said
they focused on food waste tracking, 21% are investing in improved
forecasting to optimize ordering, and 16% are enhancing
training to prevent employee-level waste.
About Restaurant365®
Restaurant365 is the industry's leading all-in-one, cloud-based
accounting, inventory, scheduling, payroll, and HR solution
developed specifically for restaurants. R365's restaurant
enterprise management software simplifies day-to-day management for
operators, allowing them to control food costs and optimize labor.
Integrations and open APIs enable Restaurant365 to connect with
other systems, including POS providers, vendors, and banks. The
result is accurate, timely reporting that provides a clear and
complete view of their businesses. Restaurant365 is based in
Irvine, California with an office
in Austin, Texas. The company is
backed by Bessemer Venture Partners, ICONIQ, KKR, L Catterton, and
Serent Capital. Additional information is available at
restaurant365.com.
Media contact:
restaurant365@nextpr.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/restaurant365s-state-of-the-restaurant-industry-survey-shows-operators-focused-on-technology-training-and-marketing-to-overcome-food-and-labor-headwinds-302211734.html
SOURCE Restaurant365