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2012 Challenges for the Restaurant and Hospitality Industry

April 05, 2012 | Comments: 0 | Views: 170

It seems that the restaurant industry is doing better than it has in the past. Many of the large chains have noted that things have done pretty well in the Midwest due to the warmer winter this year, and that is refreshing for their bottom line. Interestingly enough, the new job numbers also show that restaurants are starting to hire again, albeit not at the higher pay rates of the past.

Meanwhile, we see that the fast food industry is working to modify menus, and keep up with the competition. Some are doing quite well, others are lagging behind, but the race is on, and the competition is heating up. Luckily, it appears that consumers are spending again, and because we are in an election year, we should expect that retail sales, including restaurants should be up. There are some other good things on the horizon for the restaurant industry past the second quarter this year, which already has signs of looking good.

Indeed, without getting too humorous, some of the fast food restaurants which were engaged in offsetting their beef costs with pink slime will be paying a higher price for their shipments. Most likely the net effect will probably be nil, but Wendy's hamburgers may do quite well in improving their brand image, because they have come out with an advertising campaign promoting the fact that they had never used "pink slime" in the first place.

Still up in the air, but it looks like it will be decided by July 2012 - is the issue over ObamaCare. That is going to be a significant impact for the restaurant industry if President Obama and VP Joe Biden are correct that the Supreme Court will allow the Affordable Health Care Act to stay intact and become law, as the additional provisions go into full effect. Luckily, for some of the largest fast food restaurants, they have already received waivers for ObamaCare, and that will give them a leg up on the competition.

Of course, there will be big challenges for those companies that did not get the waiver, and it will surely add $4500 per year per employee at every single restaurant and fast food establishment. Those increased costs will make or break many restaurants, and that will hurt the industry in one way, but it will also take out competition allowing the other restaurants the potential to increase their customer base by not having to compete with as many restaurants in their communities and towns. It will be an interesting year for the restaurant industry, and I hope you will please consider all this and think on it.

Lance Winslow has launched a new provocative series of eBooks on Restaurant Concepts. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank;

Source: EzineArticles
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2012 Challenges


Restaurant And Hospitality Industry


Food Industry


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