There are fewer restaurants in the U.S. today than in 2019, and there is no indication as to whether they will come back, reports CNN.
In 2022, there were roughly 631,000 U.S. restaurants, down from 703,000, according to data from restaurant research firm Technomic. The company said that this number could continue to fall.
High inflation that has affected the post-pandemic economy has compelled many to avoid restaurants to save money. This has made it difficult for operators to deal with rising costs of their own, like rent and ingredients. With a heightened interest in takeout and delivery options, the news source said that sit-down restaurants are at a larger disadvantage to bounce back.
Many in the industry are warning emerging restaurateurs to rethink their strategy. David Nayfeld, chef and owner of Che Fico and Che Fico Alimentari said now isn't the best time to start a restaurant.
“I would say it is not a good time to go open a restaurant if you are not a seasoned and incredibly durable operator,” he said. Especially now, when restaurant operators need experience and a lot of capital to succeed, he added. He indicated that he is struggling despite his success as a veteran of Eleven Madison Park.
Industry analysts feel that industry shrink was inevitable.
“The narrative back pre-pandemic was that we were over-saturated…too many restaurants chasing too few consumer dollars,” said David Henkes, senior principal at Technomic.
He implied that if the pandemic had not occurred, the decrease in restaurants would still have happened, although it would have been slower. Full Story
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