Our friends at the California Restaurant Association recently published an article titled ‘What’s Keeping Restaurant C-suite Up at Night’. It offers some interesting insights that exhibitors can relate to.

Restaurant CEOs have cited consumer spending and inflation as the biggest challenges expected to impact operations this year. Indeed, the industry has experienced a lingering slowdown over several quarters as menu inflation continues to outpace grocery inflation. Consumers, especially Gen Z consumers, are increasingly price-sensitive, the report states, which is likely to keep sales and traffic levels muted in the near term.

Operational costs. The ongoing increase in insurance premiums, rent, and other overhead costs is compromising profitability. U.S. commercial insurance rates, for instance, grew at a rate of 5.9% year-over-year in the second quarter of 2024.

Uncertainty. General economic uncertainty, particularly as it applies to consumer sentiment, has made it difficult to plan for sustained growth.

Most CEOs surveyed have implemented strategies such as optimizing labor forecasting, developing stronger purchasing strategies, and consolidating services for cost control. Companies are also focused more on talent development and retention, targeted marketing messages to appeal to those price-sensitive consumers, and technology investments to improve efficiencies. Additionally, CEOs are turning more attention toward non-traditional revenue streams, such as private events and catering.

CFOs prioritize cost control through labor forecasting, optimizing menu pricing, and streamlining outdated services.

And, like their chief people/human resources counterparts, difficulty finding qualified staff, recruitment, and retention are also top of mind for CFOs. HR leaders address labor cost concerns by upskilling and adding career development programs.

Chief Operating Officers are most concerned about declining traffic, in addition to supply chain disruptions and the need to adapt to technology changes. As such, they have become more focused on adopting technology to optimize efficiencies, as well as strengthening supplier relationships.