By: Kerry Pipes | 226 Reads | 1 Shares
Yet another survey has confirmed that restaurant operators are most concerned about inflation as they operate in 2023. But TD Bank’s Restaurant Franchise Finance Group’s new survey also finds people in the restaurant industry optimistic about the future and finding opportunities to invest. The poll surveyed 300 restaurant franchise operators and other finance professionals at the 2022 Restaurant Finance and Development Conference in Las Vegas, Nevada, to identify restaurant franchise finance trends.
“Many restaurants went through a major shift during the pandemic with an increase in demand for delivery and takeout options,” said Mark Wasilefsky, head of Restaurant Franchise Finance Group, TD Bank. “As many people are beginning to restart their pre-pandemic routines, restaurants are likely to see another change in dine-in options. The industry is extremely resilient, and operators must adapt to meet consumers’ demands in an ever-changing restaurant landscape.”
Here are some highlights from the survey:
- Inflation remains a top challenge: Inflation was cited as the top challenge restaurant franchise professionals are facing. They also cited the labor shortage (32%), supply chain disruptions (16%) and rising interest rates (11%) as factors impacting their businesses.
- Labor quality and availability decreases: 69% respondents said they noticed a decrease in labor quality and availability due to the current macro environment.
- Top areas for technological investment: 38% of operators planning to invest in technology such as a new POS, digital signage, or other in-store tech (38%), and 37% planning to invest in mobile ordering.
- Optimism remains high: 66% of restaurant franchise operators and industry professionals feel optimistic amid the current macro environment.
- A Makeover: 41% of restaurant franchise operators said that they plan to invest in in-store reimagining, remodeling, or in digital and delivery systems