Murky Forecast for Restaurants?

Restaurant operators are “braced for potential challenges” this year, according to the latest National Restaurant Association Business Conditions survey  Currently, 50 percent of operators across the U.S. expect to be less profitable in 2023. Rising food, labor and energy/utility costs pose significant challenges heading into 2023. 

The majority of small and midsize U.S. business leaders anticipate a recession in 2023, according to JPMorgan Chase’s 2023 annual Business Leaders Outlook survey. In total, 65 percent of midsize businesses and 61 percent of small businesses expect a recession in the year ahead.

Food and labor costs are the two most significant line items for a restaurant, each accounting for approximately 33 cents of every dollar in sales, according to the National Restaurant Association survey. Other expenses — such as utilities, occupancy, supplies, general/administrative and repairs/maintenance — combine to represent about 29 percent of sales. 

92…