What Does 2024 Look Like for the Restaurant Industry?

A new year brings new beginnings and opportunities for transformation in the restaurant industry. It’s the perfect time to look back on a few things we learned in...

This article was written by Katie Fairchild CMO of Restaurant365 for Modern Restaurant Management.

A new year brings new beginnings and opportunities for transformation in the restaurant industry. It’s the perfect time to look back on a few things we learned in 2023 – based on recent survey data from our restaurant partners – as well as what we predict for the industry in 2024.

A Look Back at 2023

To gauge the state of the restaurant industry, including the industry’s most pertinent worries around food and labor costs, Restaurant365 conducted a survey of over 730 customers representing 14,000+ locations in December 2022 and again in September 2023.

According to the 2022 data, 74 percent of customers surveyed expected to see a rise in food costs, and in September 2023, the average increase in food costs reported was 2.9 percent. Fifty-three percent of those respondents said they have reduced their cost of goods sold (COGS) through better inventory tracking of key ingredients.

The survey also showed 75 percent of respondents expected their labor costs to increase in 2023. By July, 83 percent had seen a rise in labor costs. Six out of 10 customers used sales and labor data to make actionable improvements. Ultimately, after a tumultuous few years, 2023 was better than many operators predicted.