A restaurant industry group expects the industry to climb in both sales and employment through 2024, according to the National Restaurant Association’s State of the Restaurant Industry report.
The report projects restaurant sales to gross $1.1 trillion in 2024, which is up 10% from last year's forecast.
But while the report does predict growth, challenges remain for restaurant owners.
Richard Walls is the co-owner of the Heidelberg in Columbia and president of the mid-Missouri chapter of the Missouri Restaurant Association. He said food costs and staffing are two of the biggest hurdles restaurants are facing right now.
In the survey, 45% of restaurant operators said they will need more employees to keep up with customer demand. But Mike Burris, executive director of the Missouri Restaurant Association, emphasized the importance of finding the right people for those positions.
"There's two things anybody wants in business out of employees: They want you to be reliable and work when they need you," Burris said. "I spent over 20 years on the restaurant side myself, and those two things you always look for."
Richard Walls is the co-owner of the Heidelberg in Columbia.
Walls said operating a restaurant in Columbia, especially in such close proximity to the University of Missouri campus, helps with staffing. He said he likely has an easier time staffing his restaurant than operators in the nation at large do.
"Due to three universities being here, there's a younger population base," Walls said. "That's been very beneficial in helping find staff."
For many restaurants, rising food costs also continue to pose a challenge. About three-fourths of restaurant operators saw their average food costs rise from 2022 to 2023, according to the National Restaurant Association.
"I think people notice … whether you're inside the industry or (outside) how much higher the prices are," Burris said. "But that's not because that's what restaurants want to do; it's because that's the price of goods they buy."
Walls said the Heidelberg has become "a lot more efficient" by reducing the size of its menu, shortening some operating hours and raising some prices.
Higher menu prices can discourage customers from eating out, so Walls said high inflation indicates the Heidelberg's revenue might take a hit.
Nearly half of restaurants continue to contend with another legacy of the COVID-19 pandemic: debt. According to the report, 43% of business operators are still dealing with debt they incurred during the pandemic.
While Walls said some factors beyond his control have contributed to a slower start to 2024, he said much of restaurant success still boils down to the fundamentals.
"It's really consistency, service, food quality, cleanliness," Walls said. "I mean everything that has mattered."
