For majority of restaurant operators in the United States, it will take at least a year before business conditions return to normal amid the increasing Omicron cases, according to a survey conducted by the National Restaurant Association or NRA.
In its 2022 State of the Restaurant Industry report, the NRA projects the foodservice industry to reach $898 billion in sales in 2022. Further, the foodservice industry workforce is projected to grow by 400,000 jobs, for total industry employment of 14.9 million by the end of 2022.
Between 2023 and 2030, the restaurant and foodservice industry is projected to add an average of 200K jobs each year, with total staffing levels reaching 16.5 million by 2030.
The report measures the restaurant industry's continued recovery and examines the status of current and emerging trends across key categories including technology and off-premises business, operations, workforce, food and menus, and more.
Among the restaurant operators participated in the survey, more than half said it would be a year or more before business conditions return to normal. Food, labor, and occupancy costs would remain elevated, and would continue to impact restaurant profit margins in 2022.
In 2021, ninety-six percent of operators experienced supply delays or shortages of key food or beverage items, and the challenges are likely to continue in 2022.
Further, for half of U.S. restaurant operators, the availability of seating on a sidewalk, parking lot, or street will become more common within their segment this year.
Among adults, fifty-one percent say they aren't eating at restaurants as often as they would like, which is an increase of six percentage points from before the pandemic. Further, fifty-four percent of adults say purchasing takeout or delivery food is essential to the way they live, including 72 percent of millennials and 66 percent of Gen Z adults.
Last year, demand for alcohol to-go and outdoor dining also increased with nearly four in 10 consumers saying the availability of outdoor seating would make them more likely to choose one restaurant over another similar one.
The NRA last week had urged the U.S. Congress to refill the Restaurant Revitalization Fund or RRF, which is expected to save more than 1.6 million jobs in the restaurant industry hit hard by the surge in Omicron Variant.
According to the association, the restaurant and foodservice industry added back 1.7 million jobs during 2021 for an end-of-year total of 14.5 million employees. Many restaurants remain severely understaffed, and this will continue to constrain industry growth in 2022.
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