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2004 Michigan Restaurant Industry Forecast

East North Central Region Restaurant Sales Expected to Reach Record Levels in 2004
Restaurant sales to grow 3.8 percent to $53.6 billion next year according to National Restaurant Association's 2004 Restaurant Industry Forecast

December 16, 2003
Contact: Katharine Kim 202-331-5939, Media Relations 202-973-3677

(Washington, DC) Underscoring restaurants' essential role as the cornerstone of the economy, restaurant sales in the East North Central region are expected to reach a record $53.6 billion in 2004, an increase of 3.8 percent over 2003, according to the National Restaurant Association Restaurant Industry Forecast . On a national level, the restaurant industry is entering its 13th consecutive year of real growth with sales predicted to reach a record $440.1 billion.

"Restaurants serve as an important and essential component to the American lifestyle, as well as the cornerstone of the national economy. As that role evolves, restaurants will continue to grow," said Steven C. Anderson, president and chief executive officer of the National Restaurant Association. "With sales expected to reach over $440 billion in the coming year—equal to 4 percent of the U.S. gross domestic product (GDP)—2004 will be the 13th consecutive year of real growth for the restaurant industry."

In 2004, Illinois restaurants are expected to post sales of $15.9 billion (3.8 percent increase from 2003); Indiana, $7.1 billion (3.9 percent increase); Michigan, $11.4 billion (3.9 percent increase); Ohio, $13.5 billion (3.6 percent increase); and Wisconsin, $5.7 billion (3.8 percent increase).

"The more positive economic environment as well as gains in real disposable personal income for 2004 will continue to be the catalysts driving sales in the East North Central region up 3.8 percent over this year and will propel the overall restaurant industry into yet another year of real growth," said Hudson Riehle, senior vice president of the Association's Research and Information Services Division. "On a typical day in 2004, the restaurant industry will post average sales of over $1.2 billion."

Economic growth is expected in all nine U.S. regions, with all regions adding jobs in 2004. When it comes to how restaurants in different parts of the country will fare, the top regions in terms of sales growth remain in the South and the West. These regions have the fastest growing local economies and are expected to post growth in disposable income and population—two important indicators of growth for restaurant sales. Specifically, the Mountain region will again lead the nation with a projected restaurant sales growth of 6.1 percent. The East North Central region is projected to show the slowest growth of the nine Census regions.

Nationally, restaurant-industry sales are expected to increase by 4.4 percent in 2004. On the state level, Nevada is expected to lead the nation with 6.8 percent sales growth. Arizona follows closely with 6.5 percent and Utah at 6.2 percent is expected to post the next strongest growth numbers. The District of Columbia (3.4 percent) and Hawaii (3.5 percent) are projected to show the lowest growth in sales, associated with the continued weakness in tourism.

With the number of restaurant locations in the United States growing in 2004, the number of restaurant jobs will also increase. Despite the uncertain economic environment in recent years, job growth in the restaurant industry has remained steady. While U.S. employment fell 0.2 percent during 2003, the industry posted a solid growth rate of 1.2 percent. The restaurant industry will remain the nation's largest private-sector employer for many years to come. By 2014 restaurant-and-foodservice employment will total 13.5 million-an increase of 1.5 million jobs over the next 10 years.

In its 34th year, the National Restaurant Association's 2004 Restaurant Industry Forecast provides an annual projection for the restaurant-and-foodservice industry as a whole and among a variety of industry segments. The Association defines the restaurant-and-foodservice industry as that which includes all meals and snacks freshly prepared away from home, including takeout meals and beverages.

For more information about regional and national data from the National Restaurant Association's 2004 Restaurant Industry Forecast, visit www.restaurant.org.

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Last updated March 17, 2004