Study: Restaurant industry, foodservice operators express fear of rising food, labor costs
Restaurants and other foodservice establishments plan to fight back by updating their menu offerings, negotiating better terms with suppliers and creating digital services like online ordering, the study says.
The restaurant industry and other foodservice operators are on a tear, with sales growth outpacing retail for a decade and revenues surpassing retail for the first time in 2015, according to a new study by L.E.K. Consulting, Boston. However, foodservice industry professionals see a number of threats on the horizon in the form of rising food and labor costs and fierce price pressure from groceries that offer prepared foods.
Overall, the industry is marked by significant optimism. More than three quarters (78%) of foodservice professionals expect growth to increase over the next three years compared to the last three years. That's slightly up from the 2014 study (76%). And, 76% think there is less than a one in five chance of a recession impacting their business in the next three years.