My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Restaurants Headed For Revenue Diet

min read

It's not exactly breaking news, but it's certainly been made official this week: Restaurants are expected to have their worst year in more than a generation.

While price-conscious franchises such as Subway seem to be taking the recession more or less in stride (the sandwich behemoth plans on opening 1,600 or so stores this year), high-end eateries are bearing the brunt of the downturn--and several closures have been reported in places like New York.

Technomic, a restaurant industry consultancy based in Chicago, reported yesterday that it expects business at American eateries to decline 2.2 percent compared to 2008. "... The firm expects 2009 will be the worst year for foodservice since it began tracking performance in 1972," states a Technomic release.

Full-service restaurants--projected to be down 6 percent--will fare the worst among the food industry sectors analyzed by Technomic. Bars and taverns (+1.5 percent) and education food service (+3 percent) are two of the categories that will offset the losses expected for the industry.

Also, wholesale food costs are on the decline--a small bit of good news for the eatery entrepreneur.

"However, even if the economy were to improve quickly in the second half of 2009," states Technomic vice president Joe Pawlak, "real growth is expected to remain negative."

More from Entrepreneur

David provides constructive insight to help businesses focus on their company growth, build brand awareness and know when and how to raise money.
Book Your Session

In as little as seven months, the Entrepreneur Authors program will turn your ideas and expertise into a professionally presented book.
Apply Now

Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur