Blog – Hospitality Sector Analysis and Commentary – June 2023
Restaurant operators are “braced for potential challenges” this year, according to the latest National Restaurant Association Business Conditions survey Currently, 50 percent of operators across the U.S. expect to be less profitable in 2023. Rising food, labor and energy/utility costs pose significant challenges heading into 2023.
The majority of small and midsize U.S. business leaders anticipate a recession in 2023, according to JPMorgan Chase’s 2023 annual Business Leaders Outlook survey. In total, 65 percent of midsize businesses and 61 percent of small businesses expect a recession in the year ahead.
Food and labor costs are the two most significant line items for a restaurant, each accounting for approximately 33 cents of every dollar in sales, according to the National Restaurant Association survey. Other expenses — such as utilities, occupancy, supplies, general/administrative and repairs/maintenance — combine to represent about 29 percent of sales.
• 92 percent of operators say food costs are a significant challenge
• 89 percent of operators say labor costs are a significant challenge
• 50 percent of operators expect to make less profit in 2023
Source - https://modernrestaurantmanagement.com/murky-forecast-for-restaurants/
Additional sources and links:
Food Waste - https://www.linkedin.com/advice/0/what-some-innovative-creative-ways-reduce
ESG - https://sustainabilitymag.com/articles/esg-developments-show-the-need-to-enhance-supply-visibility
Food Costs - https://www.westernstandard.news/business/no-greed-flation-fed-gov-t-finds-no-profiteering-despite-high-inflation/article_1b09b668-113e-11ee-8014-7bfdcd0dc44e.html or https://financialpost.com/news/economy/food-prices-stay-higher-before-pandemic-rbc
Online - https://www.benzinga.com/pressreleases/23/06/n32979649/the-online-grocery-market-to-grow-by-usd-740-88-billion-from-2022-to-2027-the-rapid-growth-in-e-co
Technology - https://www.israel21c.org/inside-the-startup-creating-the-future-of-food-production/
Consumers - https://kansasreflector.com/2023/06/24/wage-growth-remains-high-jobs-are-steady-and-inflation-is-falling-so-why-are-people-worried/
Food and Drinking Place - Hospitality Sector - Analysis and Commentary - June 2023.pptx
1. HOSPITALITY, FOOD SERVICE AND FOOD
PRODUCTION SECTOR – ANALYSIS AND
COMMENTARY – JUNE 2023
Paul Young CPA
June 25, 2023
2. PAUL YOUNG – SENIOR DATA
AND AI EXPERT
• CPA, CGA
• Academia (PF1, FA4, FN2, MU1. and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Sustainability and ESG Policy and
Reporting
• SME – Emerging Technology
• SME – Business Process Change
• SME – Financial Solutions
• SME – Macro/Micro Indicators
• SME – Supply Chain Management
• SME – Data, AI, Security, and Platform
• SME – Internal Controls and Auditing
Contact information email: paul.young_cga@outlook.com
Linked-In: https://www.linkedin.com/in/paul-young-055632b/
SlideShare - https://www.slideshare.net/paulyoungcga
3. AGENDA
• Food/AG Index
• CPI
• Food and Drinking Places Sales
• Automation
• Food Production and Processing
• Staffing / employment
• Food and Beverage Sector
6. AUTOMATION
HOSPITALITY
SECTOR
• Virtual Trips - https://coleofduty.com/news/2020/06/21/2020-
2025-virtual-reality-in-tourism-market-is-booming-worldwide-
global-industry-size-growth-segments-revenue-manufacturers/
• Automation - https://www.revfine.com/technology-trends-
travel-industry/
• Automation -
http://www.hospitalitybizindia.com/detailNews.aspx?aid=38291
&sid=1
• Robotic Servers - https://www.reuters.com/article/us-health-
coronavirus-netherlands/robots-dish-out-the-drinks-at-
reopened-dutch-restaurant-idUSKBN2392I4
• Robotics waiters and bartenders -
https://www.winespectator.com/articles/robot-bartenders-
waiters-surge-in-demand-in-pandemic-unfiltered
• Tax policy will need to change as part of automation changes
by the hospitality sector, i.e. robot tax, automation tax, etc.
• IBM Analytics - https://www.ibm.com/ca-en/products/planning-
analytics and Cognos Analytics -
https://www.ibm.com/products/cognos-analytics/features
• My work on small to medium size businesses
• https://ibm.box.com/s/gs1kdowdb0nh93wr9txch4fyihhgqd3t
• Close, consolidate, and reporting -
https://ibm.box.com/s/i7efp948qvb5l8bt96y8sigsup8yes2u
• Food warehousing and distribution - My blog -
https://www.linkedin.com/pulse/blog-grocery-food-distribution-
automation-paul-young/?published=t
11. WHAT’S NEXT
• Food and hospitality sector will continue to adapt to the new market
Blog – Hospitality Sector Analysis and Commentary – June 2023
Restaurant operators are “braced for potential challenges” this year, according to the latest
National Restaurant Association Business Conditions survey Currently, 50 percent of operators
across the U.S. expect to be less profitable in 2023. Rising food, labor and energy/utility costs
pose significant challenges heading into 2023.
The majority of small and midsize U.S. business leaders anticipate a recession in 2023,
according to JPMorgan Chase’s 2023 annual Business Leaders Outlook survey. In total, 65
percent of midsize businesses and 61 percent of small businesses expect a recession in the year
ahead.
Food and labor costs are the two most significant line items for a restaurant, each accounting for
approximately 33 cents of every dollar in sales, according to the National Restaurant Association
survey. Other expenses — such as utilities, occupancy, supplies, general/administrative and
repairs/maintenance — combine to represent about 29 percent of sales.
92 percent of operators say food costs are a significant challenge
89 percent of operators say labor costs are a significant challenge
50 percent of operators expect to make less profit in 2023
Source - https://modernrestaurantmanagement.com/murky-forecast-for-restaurants/
Addit
i onal sources and links:
Food Waste - https://www
.linkedin.com/advice/0/what-some-innovat
i ve-creat
i ve-ways-reduce
ESG - https://sustainabilitymag.com/art
i cles/esg-developments-show-the-need-to-enhance-supply-
visibility
Food Costs - https://www
.
westernstandard.news/business/no-greed-flat
i on-fed-gov-t-finds-no-
profiteering-despite-high-inflat
i on/art
i cle_1b09b668-113e-11ee-8014-7bfdcd0dc44e.html or
https://financialpost.com/news/economy/food-prices-stay-higher-before-pandemic-rbc
Online - https://www
.benzinga.com/pressreleases/23/06/n32979649/the-online-grocery-market-to-
grow-by-usd-740-88-billion-from-2022-to-2027-the-rapid-growth-in-e-co
T
echnology - https://www
.israel21c.org/inside-the-startup-creat
i ng-the-future-of-food-product
i on/