Despite increased sales, operators must take action to combat a 13% increase in food costs and an 8% increase in labor.
IRVINE, Calif., Aug. 30, 2023 /PRNewswire/ — Restaurant365, the leading all-in-one restaurant enterprise management software, has shared new restaurant industry insights including economic, sales, workforce, operational, and consumer preference trends.
The findings are based on customer data collected from Q2 of 2022 to Q2 of 2023 and a poll conducted in July 2023 representing 14,000 locations within the fine and casual dining, fast casual, and quick serve segments.
These statistics were shared by Tony Smith, CEO and Co-Founder of Restaurant365, during the first national Restaurant Transformation Tour user conference to help restaurant operators better prepare for the second half of 2023.
Inflation continues to be an issue
The July 2023 customer poll showed 74% of respondents have seen an increase in food costs, with an average increase of 13%. 53% of operators have reduced their cost of goods sold (COGS) through better inventory tracking.
Labor costs are on the rise
83% of restaurants polled continue to see a rise in labor costs, with an average increase of 8%. Recruiting and retaining staff remains a challenge, with 50% of respondents citing it as their biggest challenge in 2023. 53% have turned to offering higher wages to compete for staff.
Changes in consumer dining preferences
Restaurant365 customers have seen an encouraging average sales growth of 5% from Q2 of 2022 to Q2 of 2023 while noting a shift in consumer dining preferences. Customer data shows that within this same timeframe, on-premise dining has increased by 9.2%, takeout sales have dropped by 6.1%, and delivery sales have remained relatively flat with a 0.1% decrease.
“While nobody can predict sudden shifts in consumer preferences, operators can prepare themselves and be ready to quickly pivot to accommodate these changes,” states Smith. “Using the data collected by your restaurant’s back-office software to determine which streams of revenue are of greatest value, create more profitable menus, and control inventory and labor costs are just a few of the ways that operators can continue to drive sales and stay profitable in a changing market.”
Restaurant365 is the industry’s leading all-in-one, cloud-based accounting, inventory, scheduling, payroll, and HR solution developed specifically for restaurants. R365’s restaurant enterprise management software simplifies day-to-day management for operators, allowing them to control food costs and optimize labor. Integrations and open APIs enable Restaurant365 to connect with other systems including POS providers, vendors, and banks. The result is accurate, timely reporting that provides a clear and complete view of their businesses. Restaurant365 is based in Irvine, California with an office in Austin, Texas. The company is backed by Bessemer Venture Partners, ICONIQ, KKR, L Catterton, and Serent Capital. Additional information is available at www.restaurant365.com.