Despite the business environment improving in some areas, cost issues continue to concern operators, our new Restaurant Industry Forecast shows.
Here’s a look at some cost challenges that continue to plague your peers. Get the details in our full report:
It’s no surprise that labor represents a significant cost of doing business. Roughly three-quarters of restaurant operators say they expect labor costs to continue to be a challenge this year. Generally, about a third of sales in a typical restaurant goes toward labor costs.
Food costs remain a significant or moderate challenge for about three-quarters of tableservice operators, with slightly fewer limited-service operators reporting the same. Average wholesale food prices dipped somewhat in 2015 after five years of increases, leaving 2016 prices elevated.
Utility and energy costs remain significantly challenging, particularly for tableservice operations. The outlook for commercial energy prices is a mixed bag for 2016, with natural gas expected to trend down and electricity expected to increase.