You’re here because you’re thinking of launching a restaurant, but the pandemic might have put that dream aside. You’re here because you’re wondering whether you still have a shot at it.
In this list of FAQs, you’ll hopefully get the answers you need:
Is There a Demand for Restaurants?
Yes, there is. In an industry data, sales for retail and restaurants grew by over 17% from April to May 2020. Businesses enjoyed a revenue reaching nearly $500 billion. Although these numbers were much lower than the May 2019 data, it tells you that restaurants still have a future, according to Philadelphia Inquirer.
For one, many states are easing up their restrictions. Second is revenge shopping, which is when people spend more after being cooped up in their homes for at least two months.
Third, federal and state governments are releasing stimulus checks and programs that should help restart the economy. Fourth, restaurants learn to be resilient. For example, many are now offering curbside and take-outs, which make them more versatile and cater to anxious and frightened customers.
Note, though, that the country (and its economy) is still in a vulnerable state. Depending on how the pandemic goes, guidelines can change quickly.
Do Restaurants Have an Underserved Market?
The United States has millions of restaurants across the United States, so it’s not surprising to ask whether a restaurant business opportunity is still worth pursuing. Yes, it still has an underserved market. This includes rural locations.
A 2018 study explored food availability and access in rural communities. The researchers learned that restaurants, from sit-down to fast food, have low penetration in these areas. Further, residents also don’t have access to a variety of food choices, even in their convenience stores or groceries.
However, location still matters; and this makes opening a franchise more advantageous than starting a business from scratch. Experienced ones can help you find the right place and design a restaurant that fits the space and even nuances of the area.
What Are the Growing Trends of Restaurants?
One is all-day breakfast as more experts tout it as an essential meal of the day. Many people are also busy, missing out on the chance of having a decent first meal or not having enough time to prepare such a meal for their family.
Although the trend is a healthier breakfast meal, consumers still demand comfort foods. These include waffles, eggs, pancakes, and bacon.
Another trend is the scalability. For example, a franchised restaurant can start as a booth until it can expand to become a sit-down diner. Another option is to operate in malls and transform into a stand-alone restaurant.
The palate of US consumers is eclectic, but the pandemic leads to the growing demand for comfort food. For example, the sales for pastry soared by over 18%, according to the Food Institute. Nielsen information, meanwhile, revealed a similar pattern for potato chips, ice cream, and chocolate, to name a few.
Although it’s unclear why this is happening, some experts believe consuming comfort food helps people manage social distancing. These foods often bring a lot of nostalgia.
Launching a restaurant these days can be frightening, but opportunities are there as long as you get smart with it.