Gloomy Days Ahead for the Restaurant Industry? | InTheCapital

Reported by foodem.com, the online wholesale food marketplace-

In the midst of the continued economic crisis, the restaurant industry has seen its shares of ups and downs, and it can?t seem to catch a break at the moment.

On the cusp of the holiday season things were looking up. More than 600,000 temporary workers were expected to be hired nationwide. Over 40% of those temporary jobs were to be converted into permanent positions. Along with other retailers, restaurants, especially quick-serve restaurants, were slated to benefit from these hires.

Clouds over the restaurant industry

The latest report from the National Restaurant Association paints a different story. According to the Association?s 2013 Restaurant Industry Forecast, consumer confidence is expected to remain fragile in 2013, causing a trickle effect. If consumers are reluctant to spend, this will cause employers to halt hiring, and possibly layoff or limit the hours of existing workers.

The report also expresses that the restaurant industry is seeing an ?unprecedented tightening of purse strings by many households, with consumer spending growing at rates well below what would be expected during a normal post-recession recovery.? On the other hand, the NRA denotes the upward demand for dining out, with four out of 10 respondents saying they are unable to dine out as much as they would like. This is a clear indication that the act of ?penny-pinching until I?m in a better financial situation? is the issue and not ?restaurant abandonment.?

What does all this mean for restaurant operators?

Although the financial positions of most consumers are improving, encouraging customer loyalty, the implementation of loyalty and rewards programs, and discounts are key in keeping existing customers happy and filling the seats in your establishment. This is especially true now that we?re facing and trying to avoid a fiscal cliff. In turn, sales should increase or at least remain stable, and your staff may evade pink slips or slim paychecks.

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Source: http://inthecapital.com/channels/gloomy-days-ahead-for-the-restaurant-industry/

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