PGI Restaurant Management Consultant Group Insights 03/23/2011

Stories we follow in our restaurant management consultant group indicate more signs of an economic rebound in the foodservice industry. There is also continued talk about rising food prices as a result of worldwide events. And, if you are a fan of the iconic California In-N-Out chain living in Texas, those burgers are soon to be nearby. Here are summaries and our take on it: Restaurant ConsultingThe NRA (National Restaurant Association) reports that restaurant sales are finally positive after three tough years. One highlight is that “Quick-service restaurants are projected to post sales of $167.7 billion this year, a gain of 3.3 percent over 2010. Sales at full-service restaurants are projected to reach $194.6 billion in 2011, an increase of 3.1 percent in current dollars over 2010.” In our experience, it takes sales rises of at least 3%-5% year-over-year to consider the economy is in a growth mode. If you are developing your restaurant bar business plan with an opening sometime in 2011, view the full video here on the industry’s projected performance. On a related note as to the industry’s pricing and profits, supply problems and demand by China and India consumers is driving food costs higher at your local restaurant. That in turn in our opinion will impede the profitability of any sales gains. Of course, unless owners and operators can charge more and not lose customers from a restaurant management consultant perspective, the economic growth is a moot point. Lastly, what does it mean when In-N-Out takes its first leap into another major market such as Texas? In essence, the economic conditions are obviously good in the Lone Star State, especially if you are in the business of providing restaurant management or other services. If the restaurant quick-service and full-service sector are beginning to show signs of economic growth, what segment is lagging? Coupled with that same question, if you an owner or operator, what will you or your restaurant management consultant target as the best possible markets to expand or build in??