Resurgence in Restaurant Demand as Consumer Demographics Possibly Change Post-Pandemic
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The restaurant industry appears to be on the rebound following the pandemic with more restaurants reporting a surge in demand.
Restaurant Business Online reports the pent-up demand comments are coming from the executives of casual-dining chains. More of those restaurants are banking on the added demand to drive strong growth this year. It's a hopeful sign after COVID-19 proved to have a devastating impact on the restaurant industry.
The National Restaurant Association says in less than a year, food businesses across the country reported $240 billion in losses. And more than 110-thousand restaurants closed their doors for good.
But as shutdowns and more COVID-19 restrictions are lifted, along with vaccine rollout helping more people feel comfortable eating out, restaurants are seeing a resurgence in demand today. While the National Restaurant Association is watching the comeback, the Association says it doesn't expect total restaurant demand to fully recover this year. And it's longer-term trends industry leaders are watching closely.
"Going forward, one of the most important determinants will be the demographics of that remigration pattern," says Hudson Riehle, senior VP of Research for National Restaurant Association. "That, in tandem with the remote working, because when somebody is geographically dispersed, even if it comes up with a hybrid model of two or three days on site in a city center and two or three working remotely, it still means that the historical traffic patterns will not be the same as they were pre pandemic."
But as restaurants continue to pivot and meet the new demand, it's coming at a price. More restaurant owners are now saying they just don't have the staff to keep up with the demand. Some are blaming the extra unemployment bonus from the federal government. Right now, anyone on unemployment nationwide receives an extra $300 per week.
