The results from our 2023 State of the Industry Survey are in, and over 200 of you weighed in with your thoughts on the challenges and trends in the bar and restaurant industry, with an average of 185 respondents answering each question.
Of the respondents, a large majority (59%) were presidents/CEOs, followed by general managers (13%). Respondents were pretty evenly split between bars (35.61%) and independent restaurants (37.07%), with sports bars (16.59%) coming in third.
Despite economic stressors like inflation, an overwhelming majority of respondents (75.37%) said they plan on investing in new features for their establishments this year. Those who plan on investing responded that décor/furnishings (11.5%), entertainment (10.8%), and glassware/tableware (8.42%) are at the top of their lists for this year.
Most plan on spending more than $20,000 on upgrades, investments, and new products/equipment. This willingness to spend may be the result of bars/restaurants coming off a strong 2022. Many survey respondents cited increased sales as their big win in 2022, along with staying in business and retaining staff.
The increase in spending could also stem from a generally optimistic outlook on the industry and economy. Nearly three-quarters of respondents expect economic conditions to remain stable or improve.
Interestingly, despite such strong optimism, rising costs (35.75%) were named as the top challenge facing businesses in 2023. To combat this, most respondents said they would raise prices (22.51%) or cut costs (13.09%).
Enhanced marketing (13.61%) also ranked high as a solution, and participants listed Facebook (32.97%) and Instagram (26.49%) as their top marketing methods followed by email marketing (14.59%).
The inflation challenge was followed closely behind by the labor shortage and inexperienced labor (34.2%). Respondents said they would turn to new/enhanced training practices (15.18%) and attempt to increase staff (13.61%) to combat this problem.
When it comes to goals, respondents said their top objective in 2023 is to attract/retain customers (34.41%), which would naturally lead to the second most popular goal of increasing revenue (26.88%). Rounding out the top three is improving the guest experience (13.98%), which isn’t a surprise given the experience economy we now live in and consumers’ demand for a unique and memorable experience when dining out.
Respondents overwhelmingly said that service (51.08%) is the most important part of creating a stellar guest experience. This helps to explain the importance of solving the labor shortage, as the staff is ultimately responsible for cultivating great service. Food and drink quality (30/11%) clocked in as the second-most important aspect of the guest experience.
And just what are guests looking for on their plates and in their glasses? Survey respondents cited healthier options (19.13%) as the biggest F&B trend they expect to see in 2023. The related category of no- and low-alc beverages also ranked high at 15.31%, further driving home the appeal of better-for-you options among health-conscious consumers.
But don’t discount the value and popularity of tried-and-true options. Survey takers named wings and burgers as their most popular food items.
Smaller menus (16.84%) came in as the second-biggest trend. This is mostly likely driven by staff shortages, rising prices, and the attempt to choose ingredients that can be used in multiple dishes.
On the beverage side, batched cocktails (13.78%) also ranked high, showing the importance of efficiency behind the bar in a labor-strapped market.
Tequila/agave spirits (10.97%) rounded out the top five trends, which comes as no surprise given survey respondents named the margarita as one of the most popular cocktails at their establishment. Old Fashioneds and vodka-based cocktails also ranked high.
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 in Las Vegas. Visit BarandRestaurantExpo.com.
To book your sponsorship or exhibit space at Bar & Restaurant Expo, contact:
Veronica Gonnello (for companies A to G) e: [email protected] p: 212-895-8244
Tim Schultz (for companies H to Q) e: [email protected] p: (917) 258-8589
Fadi Alsayegh (for companies R to Z) e: [email protected] p: 917-258-5174
Also, be sure to follow Bar & Restaurant on Facebook and Instagram for all the latest industry news and trends.