2019 Set to See Record Restaurant Spending from Consumers

It's a good year to own a restaurant business - in the USA, at least. According to reports from the U.S Census Bureau, restaurant spending is up by 4%. [1] "The National Restaurant Association projects overall industry sales will hit a new high of $863 billion in 2019." This is great news given the current tumultuous political climate, and restaurant owners could potentially see even more than 4% growth if current spending trends keep up. Currently, it's the middle to upper-middle class that are splurging the most cash on restaurant meals as a result of  [2] "stock market gains, stable asset markets, wage growth that is pretty healthy."

Additional reasons why consumers have chosen to splash out more on visiting their favorite restaurants is because of [3] "convenience and socialization." This is why the growth of the quick service industry seems to be increasing even more rapidly than that of table service. Nowadays, given this trend toward a 'frictionless' experience for customers, more and more businesses are scrambling to reduce hassle and provide the most seamless experience possible to consumers.

Another reason that can help explain this upshift in restaurant spending is because of the incorporation of tech in restaurants around the world. The younger generation is far more likely to visit an establishment that has technology incorporated into it in some way shape or form. Again, we find that [4] "One of the most important developments over past few years has been rapid integration of tech into delivery and ordering experience."

Let's take a look at the numbers:  [5] "Chipotle Mexican Grill had 10% same-stores sales growth for its second quarter, while McDonald's posted a 5.7% jump in same-store sales and Starbucks saw sales at its cafes open at least 12 months grow 7%." All these established brands have one thing in common, they have invested heavily in technology and have created an environment that provides a new, hassle-free experience for customers. Again, we come back to the concept of the 'frictionless' customer experience. 

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[1] https://www.cnbc.com/2019/08/19/americans-putting-more-of-their-budget-toward-eating-out.html

[2] https://www.cnbc.com/2019/08/19/americans-putting-more-of-their-budget-toward-eating-out.html

[3] https://www.cnbc.com/2019/08/19/americans-putting-more-of-their-budget-toward-eating-out.html

[4] https://www.cnbc.com/2019/08/19/americans-putting-more-of-their-budget-toward-eating-out.html

[5] https://www.cnbc.com/2019/08/19/americans-putting-more-of-their-budget-toward-eating-out.html