You might think restaurants are struggling, given the number of famous and franchised places that have closed lately. In fact, the industry itself has fared well since the Great Recession.
But, some key things are different, according to the trade publication Restaurant Business.
In some ways the recession provided a “reset” for the restaurant industry, says Restaurant Business Executive Editor Jonathan Maze. It was a dismal period for food places, because consumers of all income levels cut back on how often they ate out, and what they spent when they did dine out.
For one thing, there are a lot more restaurants—even here in Baton Rouge, given how many new eateries have opened in recent months. The number of restaurants nationwide has grown by 16% since the start of the recession, according to federal data.
Independent restaurants are still doing well, too, he says, and people are spending more at restaurants since before or during the recession.
The restaurant industry also constitutes a larger portion of the economy now, Maze writes. Restaurants have added more than 2 million workers over the past decade and now employ 11.8 million people, according to federal data. Put another way: The percentage of U.S. workers who are employed at a restaurant grew from 6.9% to 8% over that time.
Franchising has also grown more popular. In 2008, McDonald’s operated more than 2,000 of its nearly 14,000 U.S. locations, or about 15% corporate ownership. Last year, the company operated fewer than 900 of its more than 14,000 locations, or 6.3%. It’s a common refrain in the business, as companies such as Burger King, Yum Brands, Wendy’s, Applebee’s, TGI Fridays and many others have sold corporate stores to franchisees.
Read the full story to see the other ways the restaurant industry has adapted.
