Restaurant Startup Growth and Business Outlook for 2024

Twenty twenty-three, began with a banking crisis and ended with the highest interest rates America has seen in fifteen years.  It also ended with continued economic growth and low unemployment, making it a profitable, yet challenging year for small businesses in the food service industry.  Continued Fed tightening made borrowing to fund growth more expensive, while a tight labor market meant challenges finding talent and higher labor costs.  As we head into 2024, all eyes are on the Federal Reserve as interest rates hold the key to employment and the consumer spending fueling the small business economy.

In all, we expect 2024 to be a better year for business than 2023 as the Federal Reserve executes the soft landing it has been seeking since this tightening cycle began. This means lower interest rates for businesses financing inventory and investing in expansion. It also means a marginal improvement in spending power for consumers driven by moderate wage growth and strong…