The slow economy has continued to put conflicting pressures on restaurant owners, according to Food Industry News in its 2003 annual food industry survey. Food Industry News is a trade publication, based in Des Plaines, Ill., that covers the food and restaurant industry in the Midwest. The 2003 annual survey, completed by thousands of restaurants and the companies that supply them, provides an interesting snapshot of issues that are most important to the restaurant and food industry.

Among the survey’s finding are that restaurant patrons have reacted to the slower economy by spending less: 46.7 percent of restaurant owners responded that the average check amount per person was down since last year’s survey. And almost two-thirds, 66.6%, responded that their customers were buying more value meals. 50 percent said that they plan to add low-priced specials to their menus. Less than half of the restaurateurs surveyed, 46.8 percent, responded that their dollar sales volume increased over last year.

Customers may be spending less, but their expectations are rising, adding to restaurateurs’ challenges. Quality is high on the minds of customers, and restaurant owners have had no choice but to respond. In fact, 94 percent of restaurateurs stated that higher quality products are more important now. Healthiness is high on the list of customers’ priorities—80.3 percent of restaurant owners said that customers are ordering healthier foods. An example of this is in the fruit and vegetable juice category: 64.9 percent of restaurant owners surveyed said they are adding more fruit and vegetable juices to their menu. 

The slowed-down economy is putting pressure on food suppliers and purveyors as well, who are contacting restaurant owners more often, adding to restaurateurs’ pressures. Restaurateurs are ‘between a rock and a hard place’—on the one hand, they need the contact with current and potential suppliers because smart purchasing is a priority when keeping costs down (68.9 percent said they are spending more time on buying decisions). A huge majority, 92.1 percent, said that today’s economic environment has them shopping for new suppliers and better prices.

On the other hand, while contact with suppliers is increasingly important, restaurateurs complain of over-solicitation. More than 59 percent said that they receive too many telephone ‘cold calls’ from potential suppliers and are constantly contacted by food brokers and food manufacturers’ reps. Perhaps because restaurateurs are having such frequent contact with suppliers, most restaurateurs like the personal touch when working with suppliers: 73.2 percent said that they would prefer to buy from independently owned supplier firms rather than those operated by huge conglomerates.

Food Industry News is a monthly trade publication published by Foodservice Publishing Company in Des Plaines. It covers the Chicago and Midwest food, beverage and restaurant industry. For more information on the Food Industry News Annual Survey, please contact Cary Miller at Food Industry News, 3166 S. River Road, Suite 40, Des Plaines, IL 60018; phone (847) 699-3300; or email to info@foodindustrynews.com.

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