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National Restaurant Association - 3 cost challenges for 2016

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3 cost challenges for 2016

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:

Labor costs


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


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/energy costs


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.


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