Tableservice Trends

Poised for growth

The restaurant industry is poised for continued growth. Nearly 40 percent of all adults report that meals prepared at a restaurant are essential to the way they live. Lower income consumers are just as likely as upper income consumers to view restaurant dining as essential to their lifestyle. Roughly 43 percent of consumers with household incomes of less than $15,000 report that restaurants are essential to their lifestyle ? the same proportion as consumers with incomes of more than $50,000.

Eating out versus cooking at home

As the lives of Americans grow more hectic, finding time to cook becomes increasingly difficult. Tableservice Trends - 1997* data reveal that nearly one-half of Americans are cooking fewer meals at home than they were two years ago. This trend is most pronounced among older age groups.

Carryout meals

As consumers increasingly utilize the restaurant industry, restaurateurs are creating more dining-out choices such as the carryout food option. More than 34 percent of consumers report buying more carryout food today than they did two years ago. This trend is greatest among younger consumers between the ages of 18 and 34.

What are we eating?

Tableservice Trends - 1997 reveals that consumers are eating more chicken (35 percent), seafood (27 percent) and beef (12 percent) entrees than they were two years ago. The increase in orders for chicken and seafood entrees is consistent among both men and women. In contrast, only 7 percent of women report eating more beef entrees than they were two years ago, compared to 16 percent of men.

Restaurateurs continue to respond to health-conscious patrons by offering more food choices. More than 29 percent of patrons who consume vegetarian entrees report ordering more of these entrees than they did two years earlier; 44 percent of patrons report ordering more salads compared with two years earlier.

Challenges

Just as restaurateurs express optimism regarding growth, they also recognize challenges within the industry. More than one out of five operators report competition as the top challenge facing businesses in 1997. Operators with average checks of $25 or more report their greatest challenge is maintaining their volume of business.

One out of four operators of establishments with average checks in the less than $8 and $8 - 14.99 ranges report finding qualified and motivated labor a top challenge in 1997. These operators also included the minimum wage and tip credit issues as challenges.

Computer use

Restaurateurs are increasingly using computers for a host of operational needs including accounting payroll records, sales analysis, inventory control, menu planning, employee scheduling and online services. While more than 80 percent of tableservice operators utilize a computer in some fashion, 98 percent of operators with five or more establishments report using a computer.

Fifty-three percent of operators with average check sizes of $25 or more and 47 percent of operators with average check sizes of $15 to $25 report advertising their establishments on the Internet. Thirty-seven percent of operators with an average check size of $8 to $14 report the same. Only 18 percent of operators with average check sizes of less than $8 use the Internet for advertising.

Marketing

Restaurateurs continue to use a variety of marketing tools. More than 90 percent of all tableservice operators offer gift certificates. More than 70 percent offer seasonal specials and roughly 90 percent incorporate daily specials into their menus. Roughly 75 percent of all operators surveyed sponsor a community event; and about 25 percent offer a frequent-diner program.

Entertainment

Many restaurateurs recognize that entertainment enhances the dining experience and offer live music, display kitchens, video or board games, cooking classes or cigar rooms. Entertainment can also add to the overall dining experience and increase social pleasure for children and adults alike. Many tableservice establishments offer entertainment to help pass the time while food is being prepared and throughout the dining experience. According to Dinner Decision Making - 1996, consumers have higher expectations of some type of entertainment at restaurants with check sizes of more than $20; such expectations decline as check size declines. Live music is the most common form of entertainment, especially among higher-average check size operations. Lower average check size operations are more likely to offer video or board games and display kitchens that allow customers to watch their meals being prepared.

At many entertainment-based concepts the ambiance and decor of the restaurants themselves serve as the entertainment. Visual sensations of any type - ranging from fish tanks to walls of video screens - can help hook customers searching for a stimulating and lively environment.


*Tableservice Trends? 1997 is available to National Restaurant Association members for $45, excluding shipping and handling. To order, call (800) 482-9122


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