News
NRA: The future is now
March 26, 2009
* Dawn Sweeney is president and CEO of theNational Restaurant Association.
This is the toughest economic environment for restaurant operators in decades — four decades, to be exact. Restaurateurs don't need to be told that, though — they need solutions to get through the recession and to position themselves for growth when the economy recovers.
Besides, not all the news is dour. Industry growth is not declining; it has only stalled.
Sales still are expected to grow by 2.5 percent to a record high of $566 billion this year, and wholesale-food price inflation will moderate. So if operators make the right moves now, there is light at the end of the tunnel.
Though consumers are worried about the economy, the job market, access to credit and a lack of disposable income, they still have a strong desire to visit restaurants. Nearly half of them say restaurants are an essential part of their lifestyle, and one in three say they are not dining out as often as they'd like. They are poised to step up their restaurant patronage when their personal finances allow.
Thus, the economic situation is a mixed bag of challenges and opportunities for operators.
Capitalizing on the opportunities and navigating the challenges will prepare them for the market's recovery, and implementing effective cost-cutting measures and productivity-boosting practices now will translate into higher profit margins when consumer spending gets back on track.
One proven strategy for combating costs and driving traffic is to focus on creative menu solutions. As a starting point, evaluate portion sizes and ingredients. For example, introducing new and underused cuts of meat can be budget friendly for both operators and guests — and it's trendy, too. According to the NRA's chef survey, new meat cuts ranked as the fifth-hottest menu trend this year.
Another way to combat costs is to go green.
In addition to being the right thing to do for the planet, it provides opportunities to save money and increase operational efficiency. The NRA's Conserve: Solutions for Sustainability initiative was created to guide restaurant operators through these efforts.
The initiative's Web site, Conserve.Restaurant.org, provides low-cost and no-cost tips to ramp up environmental efforts while boosting the bottom line. Conserve also will have a strong presence at the NRA's 2009 show to further explore how and why the perfect time to turn your attention to sustainability is now.
Other recession survival strategies include innovative marketing techniques and channels, such as social media, word-of-mouth and loyalty programs; streamlined bar programs to maximize profits from both alcoholic and nonalcoholic beverages; staff-motivation methods that utilize employees' skills and enthusiasm to drive business; and working with suppliers and distributors to build business together.
The NRA is stepping up to give operators a head start on post-recession business, including providing new research that can help determine which efforts will work for you. The Association also is focusing its annual Restaurant, Hotel-Motel Show on improving business by providing access to leading experts, thousands of products and services and opportunities for face-to-face interaction between buyers and sellers — all under one roof.
In fact, all of the aforementioned strategies will be central themes at the NRA's 2009 show, May 16-19 in Chicago. More than 65 free education sessions will outline and further explore these and many other profit building approaches. Exhibiting companies will offer thousands of products and services to help operators implement new ideas and business strategies. All through McCormick Place, operators will experience the energy and inspiration that drive our industry.
We all have to carefully allocate resources to get results, and attending the NRA show will deliver more solutions than any other single event. The largest industry tradeshow in the country, it is celebrating its 90th anniversary this year, underscoring its quality, innovation and relevance to today's opportunities and challenges.
Visit www.restaurant.org/show for more details.
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