News

National Restaurant Association report projects 4% industry-wide sales growth this year

February 27, 2020

The National Restaurant Association projected 4% restaurant industry sales growth this year across service categories to a total national of a record $899 billion. And despite rumblings of a recession in the making for this year or next, the NRA's report paints an optimistic picture of consumer demand, thanks to off-premise growth and the advantages technology can provide to the bottom line, according to a press release. 

The organization said that a healthy labor market and "strong household balance sheets," along with "pent-up demand" is keeping the traffic at all manner of restaurants going strong. 

"Now in its eleventh consecutive year of growth, the restaurant industry is adapting to consumer preferences faster than ever before," Hudson Riehle, senior vice president, research and knowledge group, National Restaurant Association, said in the release. "Consumers tell us they want to use restaurants more than they are now, and the challenge for the industry is meeting consumers where they want to be. We expect this year will see growth in off-premises options, technology that streamlines operations, and more restaurants that are talking about their increased sustainable and eco-friendly practices."

The big area the organization identified for increasing business lies almost solely in off-premise sales, the NRA said. Other generally positive findings from the annual report include: 

• Consumers don't see tech as a job-eliminator, but service and convenience enhancer. 
• Operators are generally positive about business, but see continued unspecified "top and bottom lines" challenges.
• Operators said they are devoting more resources to tech, particularly customer-facing solutions.
• Employment opportunities abound.

On that last note, the restaurant industry continues to be a force to be reckoned with, with 63% of adults reporting they worked in the industry at some point during their lives, including 48% who said it was their first regular job. 

But, employee recruitment and retention continue to be major challenges, though nearly half of restaurant jobs last year were filled by either new entrants to the workforce or people promoted from other positions. The organization projects that there will be 15.6 million restaurant and foodservice jobs available this year. 

Healthy, sustainable and alcohol-free options also continue to be strong this year, including these findings: 

• 76% of adults said they would be more likely to visit a restaurant that offers locally sourced food.
• 79% of adults said they are more likely to visit a restaurant that offers healthy menu options.
• 65% of millennials say they are more likely to go to restaurants that offer locally sourced alcoholic beverages.
• 53% of chefs indicate that low-alcohol beers and cocktails will continue to rise in popularity this year.