Inflation Named as Top Challenge for Restaurants in 2023
A survey conducted by TD Bank, America’s Most Convenient Bank®, at the 2022 Restaurant Finance and Development Conference in Las Vegas reveals that inflation is the number one challenge facing restaurants looking towards 2023. The study surveyed 300 restaurant franchise operators and finance professionals to identify the key trends in restaurant franchise finance.
Aside from inflation, survey respondents also cited labor shortages (32%), supply chain disruptions (16%), and rising interest rates (11%) as factors impacting their business operations. Despite concerns about inflation, operators are scouting for opportunities to invest, with physical locations remaining a priority, and an equal number focusing on developing digital and delivery services.
According to the survey, 69% of participants reported a decrease in labor quality and availability due to the current macro environment, with only 24% noticing an improvement in labor quality and availability.
Despite challenges, 66% of restaurant franchise operators and industry professionals remain optimistic about the future, yet 18% maintained indifference towards the industry’s future, while 13% feel negative about it. The survey indicates that investing in digital and delivery systems, in-store reimagining, and remodeling will give restaurants a distinct advantage in the ever-changing landscape.
Investments in technology, including new POS systems, digital signage, and in-store tech are high on the agenda, with 38% of operators planning such upgrades, while 37% plan to invest in mobile ordering, 23% in delivery services, and 16% in alternative payment methods.
The study was conducted at the 2022 Restaurant Finance and Development Conference held in Las Vegas, Nevada, from November 14-16, 2022, and polled a total of 300 restaurant franchise operators and finance industry professionals.
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