Technomic – which released its highly anticipated report this month, the 2022 Top 500 Chain Restaurant Report – noted some positive overall growth for restaurants. However, the firm said that 2019 performance levels have not been reached by all… yet.
“2021 was a year like no other for the Top 500 chain restaurants,” said Kevin Schimpf, director, industry research and insights at Technomic. “Drastic shifts in market conditions led to unprecedented volatility in results for the industry's largest chains. While overall Top 500 sales surpassed pre-pandemic benchmarks, more than half of all ranked chains fell short of returning to 2019 performance levels.”
The new Technomic report includes expert findings and insights into the sales performance of U.S. chain restaurants in 2021, and the research was gathered using decades of historical data – providing a detailed analysis of the foodservice industry and overarching trends; annual sales and unit counts by chain and segment; and pandemic-related recovery metrics.
Some of the notable findings from the 2022 Technomic report include:
- Top 500 chain sales hit a total of $361 billion in 2021, increasing by 18 percent on an annual basis
- Widespread rollback of dining restrictions and historically high levels of inflation were key factors driving the expansion of Top 500 sales
- After declining the prior year, Top 500 location footprint expanded slightly in 2021 to a total of more than 226,000 restaurants
Finding Ways to Decrease Costs, Increase Revenue Streams
As the COVID-19 pandemic crossed its two-year mark in March, Restaurant365 also reported that sales across its customer base have increased since the onset of COVID. As a result, restaurants are investing in various new technologies to improve operations.
Restaurant 365 is an all-in-one restaurant management platform.
“We are extremely pleased to see the love people have for restaurants and the resurgence in food sales,” said Tony Smith, co-founder and CEO of Restaurant365. “However, restaurants continue to face a major challenge with labor shortages and rising food costs that we expect to persist throughout 2022.”
While things may be improving, savvy restaurant operators are rising above any challenges and incorporating restaurant-specific technology to increase efficiency, decrease costs and create new revenue streams, according to according to Restaurant365.
“For the average restaurant, food sales are about seven percent higher than they were in 2019 and 34 percent higher than 2021, but profitability is not rebounding as anticipated due to inflation,” explained Smith. “We are past the early-pandemic mindset of scrambling to drive sales from new channels, and the industry theme of 2022 needs to be the year of optimizing profitability instead.”
Restaurant365 said it believes many of the changes in consumer behavior that were forced upon the restaurant industry due to the pandemic – related to technology – are here to stay. The adoption of technology for online ordering, QR codes and electronic payments are now an industry norm. The company noted that this same shift in expectation is also true for restaurant operators, and more businesses are turning to them for solutions, such as their AP Payments, a solution built to automate restaurant vendor payments.
Mongolian Concepts Restaurant Group and Clean Eatz corporate are two of the many new clients to recently join the list of customers that have worked with Restaurant365, to gain efficiencies, reduce prime costs and improve profitability. Other customers include Black Bear Diner, Luke's Lobster and Freddy's Frozen Custard & Steakburgers, among others.
“Restaurant365 Payments modernizes the AP process by automating the payment workflow into one click,” shared Smith. “It's a risk-free way for restaurant operators to save hours per week and earn rebates, while enhancing payment security for our customers.”
To learn more about Restaurant365, visit Restaurant365.com. To learn more about Technomic, visit Technomic.com.
Technomic’s latest report, 2022 Top 500 Chain Restaurant Report, is available to purchase here. The firm has been producing a ranking of top U.S. chain restaurants since 1978.
Plan to Attend or Participate in
Bar & Restaurant Expo, March 27-29, 2023
To learn about the latest trends, issues and hot topics, and to experience and taste the best products within the bar, restaurant and hospitality industry, plan to attend Bar & Restaurant Expo, March 27-29, 2023. Visit BarandRestaurantExpo.com.To book your sponsorship or exhibit space at Bar & Restaurant Expo, contact:
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