Travel and tourism season in full swing and restaurants are serving up meals to international visitors and domestic travelers from coast to coast. According to National Restaurant Association research, August is the most popular month of the year to dine out, much thanks to those traveling diners.
This year is off to a good start when it comes to tourism. Spending by tourists in the United States increased at a solid annual rate of 3.9 percent in the first quarter of 2010, according to recent Commerce Department data. In comparison, tourism spending declined by 1.5 percent in the last quarter of 2009. This positive trend bodes well for the restaurant industry, as tourism is a main driver of sales growth.
The restaurant industry depends on travel and tourism for a significant portion of sales. According to National Restaurant Association research, fullservice restaurants derive roughly one-third of their annual sales from travelers and visitors. The trend is even more prevalent among operators of fine dining establishments, with approximately 40 percent of revenues at fine dining restaurants coming from travelers and visitors. In the quickservice segment, approximately 15 percent of annual sales come from travelers and visitors.
Restaurants in some cities are encouraging tourists and locals alike to dine out by participating in “Restaurant Week” promotions in August. Such promotions typically entail participating restaurants offering special, prix fixe menus at a commonly set price for a week or longer. Washington, D.C., New York City, Minneapolis/St. Paul, and Houston are among the cities holding “Restaurant Week” events in August.
