The restaurant industry is building a new future: The road to recovery continues this 2022.

The National Restaurant Association released its 2022 State of the Restaurant Industry report, which measures the continued recovery of the restaurant industry and examines the state of current and emerging trends across key categories, including technology and off-premise business, operations, workforce, food and menus, and more.

The Association said in a press release that 2022 remains a year of transition as the road to recovery continues and labor challenges are a top concern for operators.

Key findings, which illustrate how the restaurant industry continues its recovery, include:

• The restaurant industry is forecast to reach $898 billion in sales by 2022.
• The restaurant industry workforce is projected to increase by 400,000 jobs, bringing total industry employment to 14.9 million by the end of 2022.
• More than half of restaurant operators said it would be a year or more before business conditions returned to normal. Food, labor and occupancy costs are expected to remain high and continue to affect restaurant profit margins in 2022.
• Ninety-six percent of operators experienced supply delays or shortages of key food or beverage items in 2021 – and these challenges will likely continue in 2022.
• Fifty-one percent of adults say they are not eating at restaurants as often as they would like, up six percentage points since before the pandemic.

“The restaurant and foodservice industry has adapted and is moving forward with absolute tenacity, so we are optimistic about the road to recovery in the coming year,” said Marvin Irby, interim president and CEO of the National Restaurant Association.

We still have work to do to ensure that the operators who are struggling the most can survive. The Association will continue to advocate for the necessary government support at the federal and local levels to help keep these businesses – cornerstones of our communities – on the path to better days.

Marvin Irby, Interim President & CEO of the National Restaurant Association.

Improved technology makes off-premise dining possible

A few years ago, restaurants would not have been able to manage the level of off-premise demand during the pandemic, according to the report. Technological advances are becoming a long-term bet for this business channel, with more than eight in 10 operators saying that the use of technology in a restaurant provides a competitive advantage and a good proportion of operators planning to increase investments in technology this year.

Many operators will devote resources to online or app-based ordering, reservations, mobile payment or delivery management in addition to technology in the kitchen. This is endorsed by a large number of consumers who prefer the use of technology when it does not diminish hospitality.

In addition, consumer demand for take-out alcoholic beverages and outdoor dining continued to grow over the past year, with nearly four in ten consumers stating that the availability of outdoor seating would make them choose a restaurant over a similar restaurant.

Other operational data include the following:

• 54% of adults say that buying takeout or delivery is essential to their way of life, including 72% of Millennials and 66% of Generation Z adults.
• Approximately half of U.S. restaurant operators believe the availability of outdoor seating areas, in the parking lot or on the street, will be more common in their segment this year.
• Seventy percent of Generation Z adults (21+) and 62% of Millennials say the option to include alcohol with a takeout or delivery order would make them more likely to choose one restaurant over another similar restaurant.

Employees are needed throughout the restaurant industry

While the restaurant and foodservice sector again added 1.7 million jobs during 2021 to reach a total of 14.5 million employees by the end of the year, many restaurants remain severely understaffed, which will continue to limit the sector’s growth in 2022.

Despite some gains, seven in ten operators across all major segments say their restaurant currently does not have enough employees to support customer demand, and most operators expect their labor challenges to continue over the next year.

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