Nation's Restaurant News On the Go #101
Nation's Restaurant News
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Past, present, future
Happy holidays readers! NRN editor-in-chief Sam Oches here.?
As the father of three young kids, I’m frequently the recipient of the cliché, “Enjoy it; it goes fast.” A few years ago, when I was buried in diapers, sippy cups, and Cheerios, I might have rolled my eyes and muttered under my breath, “I wish it would go faster.” But now that my oldest is eight and I can count on two hands the number of years I likely have left with her under my roof, I recognize the gesture for what it is: a reminder to reflect on the past, stay rooted in the present, and express gratitude for all that I have as much as I possibly can.
Of course, you don’t need to be a parent to exercise these habits, nor does it have to be relegated to your personal life. And this month, restaurateurs would do well to reflect on the year and be grateful for what they have, particularly in the volatile season we’ve all experienced.
Let’s start by reflecting on 2024, a tough one by most measures. A year ago, in these very pages, we predicted 2024 would see more resilience from customers (nope), more IPOs from emerging brands (there were literally zero), and a soft landing for the economy (HAHAHA). Instead, the bottom dropped out on consumer spending, traffic took a dive off a cliff, and brands were forced into value messaging to stanch the bleeding. Meanwhile, stubbornly high inflation meant there was no relief on the cost front, so the margin got squeezed on both ends.
This is the point at which we root ourselves in the present and what we have today. Sure, 2024 was tough, but it was also a year of continued innovation, particularly with technology and how restaurants engage with their guests. More than ever before, restaurants have the tools they need to easily connect with guests, evolve their menus, provide for their employees, and locate smart growth opportunities. Put yourself in your own shoes 10 years ago: Could you ever have imagined having access to the resources you have today? Remember that on your hardest days.
Of course, there is still value in keeping one eye on the future, particularly in a business like restaurants. This industry is in constant motion, and if you don’t learn the moves then you’re going to get kicked off the dance floor. That’s why we’ve picked 35 trends for the year ahead (see below) that we think will make a mark on 2025. (Let’s hope for a better batting average than 2024.)
Finally, gratitude. I’m grateful for you, reader, for entrusting our team at NRN to provide you with the news, insights, and analysis you need to make your business the best that it can be, day in and day out. Know that it’s not a responsibility we take lightly.
Cheers to a successful 2025. Enjoy it; it’ll go fast.
Could restaurants rebound in 2025?
What does the economic outlook for restaurants look like in 2025? In a word: stability.
‘Tis the season to reflect on the year. And suffice it to say that 2024 was challenging beyond anyone’s expectations.
After enduring about two years of historic inflation and outsized menu prices, consumers simply stopped going to restaurants as much toward the end of last year and the beginning of this year. Restaurant brands across the board began implementing value strategies in the second quarter to win them back, and Q3 marked the first full quarter of an all-out value war.?Several executives noted the “complex consumer environment” while outlining their varying strategies to navigate through it without pressuring margins too much.
Simultaneously, another massive theme emerged during the year: a record number of restaurant bankruptcies impacting legacy brands like TGI Fridays, Bucca di Beppo, and Red Lobster, as well as once-thriving disruptors like World of Beer Bar & Kitchen, Tender Greens and Tocaya, and Melt Bar & Grill, and even franchisees for Arby’s, Pizza Hut, and Dickey’s Barbecue Pit.
Technomic even revised its forecast down slightly in September to reflect the persistent pressures. With such reflection as a backdrop, it’s also important to acknowledge that we’re coming up on a season of renewal. So, what does 2025 have in store? Given the unexpected pressures from 2024, there is some hesitancy to come up with confident predictions.
10 marketing and operations restaurant trends for 2025
2024 has come and mostly gone, offering another mixed bag of results for an industry still trying to find solid footing after a tumultuous few years.
While 2024 did not bear witness to any major calamity, it also didn’t boast a big recovery that industry watchers have expected now for four years. Instead, stubbornly high inflation finally became too much for many consumers, who pulled back on restaurant spending and forced chains big and small to roll out discounted products and value messaging.
So if 2024 was the year of tumbling traffic and desperate marketing, then what should restaurant operators expect from 2025? Could there be reason for optimism, or will we struggle through yet another disappointing year? ??
NRN’s Ron Ruggless looks deeper into the crystal ball to see which operational and marketing trends the industry might see next year.
6 easy ways for restaurants to go green, and 3 that are already doing it well
Most operators today are preoccupied with boosting traffic numbers, as consumers become choosier spenders. In an inflationary environment, operators can respond by offering discounts or filling a robust LTO calendar, but there may be another option that appeals to potential guests.
Restaurants can invest in sustainability practices.
According to the National Restaurant Association, sustainability and local sourcing is the No. 1 consumer macrotrend heading into 2025. An operator that practices eco-friendly operations could attract more consumers especially in the younger Gen Z or millennial demographics.
Here's how to get started on sustainability in a way that doesn’t break the bank, and a look at three restaurants doing it well.
9 restaurant food trends for 2025
2024 has been a tough year for restaurants, but that’s no reason not to make the “fun” predictions for 2025: the food and beverage predictions. Senior food and beverage editor Bret Thorn is back with nine trends he foresees for the coming year.
Some of these trends are beverage-focused. Elsewhere we made predictions related to sustainability in 2025, and you’ll find more of that here as well, with regenerative seafood finding its way onto this list.
The list wraps up with a prediction Thorn makes periodically. Will 2025 be the year it becomes reality? We’ll have to wait and see. Click through the gallery above to get all nine food and beverage predictions for 2025.
One of the biggest narratives from 2024: Restaurant bankruptcies
The year 2024 has been unkind to many restaurant brands, as especially evidenced by the staggering number of bankruptcies filed this year. Indeed, restaurants are on track to declare the most bankruptcies in decades with the exception of 2020, when the pandemic upended the industry. No segment has been spared, with Chapter 11 filings from legacy chains like Red Lobster and TGI Fridays to once-quickly-growing startups like Hawkers Asian Street Food and Melt Bar & Grilled, to franchisees of major brands like Pizza Hut and Applebee’s.
Here is a look at some of the biggest bankruptcies from 2024.
Extra Serving Podcast: Chi-Chi’s resurrection, Pizza Hut’s drive thru, and a Top 500 preview
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2 个月As usual, NRN is very informative. I appreciate Alicia Kelso's article, "Could restaurants rebound in 2025?" One of the subheadings is "The definition of 'value' will expand." At the restaurant level, if you offer a dollar off an item, you've lost a dollar of profit. Value can come in many ways, of course. Offer something new or in a new way to excite the customer. Redesign your menu to highlight delicious specialty items. For vendors to restaurants, help your customers create new items which help differentiate the operator from other restaurants. That is the fun part of our business and it is very rewarding!
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2 个月??