Independent Operators

Operators prioritize tech, training amid economic headwinds

Photo: Adobe Stock

August 2, 2024

Restaurant operators are grappling with persistent food and labor cost increases, but they're also investing heavily in technology, training and marketing to boost sales and protect margins, according to a new survey from Restaurant365.

The all-in-one restaurant management platform polled nearly 3,700 restaurant leaders from various segments, including quick service, fast casual, casual dining and fine dining. The survey found that while 80% of respondents reported increased food costs and 80% saw higher labor expenses, the rate of increase has slightly moderated compared to the end of last year.

Despite these challenges, 49% of restaurant leaders reported increased sales in 2024, while 34% saw a decline. Looking ahead, sales emerged as the top concern for 38% of respondents, followed by recruiting and retaining staff (24%), labor costs (18%), and food costs (16%).

To navigate these headwinds, restaurant operators are focusing on several key areas:

• Technology: Nearly 40% of respondents plan to invest in sales, marketing, and related technologies for the remainder of the year.
• Training: More than 55% of operators dedicate one to two hours per week to employee training, with a strong preference for on-the-job learning.
• Revenue Generation: Expanding catering, special events, and takeout/delivery services are top priorities for many restaurants.
• Sustainability: A growing number of operators are implementing practices like food waste tracking and improved forecasting to reduce environmental impact.

"After more than a decade of building technology to help restaurants thrive, we've seen many cycles of the industry and know how resilient restaurant leaders are adjusting to changes in market dynamics," Tony Smith, said Restaurant365 CEO and co-founder, said in a press release about the report. "We're committed to investing in our product to provide the helpful tools they need to become the profitable and successful restaurant of tomorrow."

The survey also highlighted the importance of sustainability, with 68% of respondents reporting efforts to reduce their environmental footprint.