What Could the 2024 Election Mean for Restaurants?
Let’s take a look. Restaurants may employ 12.4 million workers and account for $1 trillion in sales, but in the official platforms of America’s major political parties they barely register. The Republican Party Platform mentions restaurants precisely once: “We will eliminate Taxes on Tips for millions of Restaurant and Hospitality Workers and pursue additional Tax Cuts.” The Democratic Party Platform mentions restaurants twice — to tout its Restaurant Revitalization Fund and revisions to the Paycheck Protection Program as part of how it has been supporting small businesses. Both programs helped provide funding to restaurants to help them recover from the COVID-19 pandemic. Given the summary attention paid to restaurants, it’s no surprise that the National Restaurant Association will not endorse either party’s candidate in the presidential election. “The platforms from both parties generally are more talking points,” Sean Kennedy, executive vice president for public affairs of the National Restaurant Association, told Restaurant Dive. “Once the President is in office, no one really uses the platform as a guidepost.” While the employers’ organization is staying on the sidelines, major labor organizations have gone all-in for Harris. Both Unite Here and the Service Employees International Union have endorsed Democratic nominee Vice President Kamala Harris over the Republican nominee, former President Donald Trump. The campaigns and parties also have clearly defined positions on issues like immigration and swipe fees that are closely tied to the restaurant industry’s fortunes. Here’s a closer look at those positions and how stakeholders say they could impact restaurants. One of the Harris campaign’s concrete policy proposals is to eliminate federal income tax on tips. The No Tax on Tips policy was first proposed in an off-the-cuff remark by Trump at a rally in Nevada this summer, and quickly adopted by Harris, who also endorsed a higher minimum wage. In an interview, Ted Pappageorge, the secretary treasurer of Unite Here Local 226, which represents 60,000 hotel, restaurant, and gaming workers in the Las Vegas area, called those policy proposals “working class issues.” The National Restaurant Association has endorsed the Republican version of No Tax On Tips, which does not include the elimination of the tipped subminimum wage, in contrast to a proposal by a House Democrat that ties the two policies together…
U.S. Restaurant Job Openings Have Stabilized
In line with Pre-Pandemic trends. In September, the accommodation and food services sector reported 815,000 job openings, a significant drop from the revised 917,000 openings in August but matching the level observed in July, which was also 815,000. Over the past couple of years, job postings in this sector have steadily cooled, stabilizing at a pace more in line with pre-pandemic trends. While current openings remain slightly above the 2017-2019 monthly average of 835,000, the gap has narrowed, reflecting a return to more typical hiring patterns. Meanwhile, accommodation and food services businesses hired 813,000 workers in September, a slight increase from 812,000 in August, marking the third consecutive month of growth. Total separations fell to 704,000, down from 747,000 in both July and August, reaching their lowest level since October 2020. As a result, net hiring—hires minus separations—stood at a robust 109,000 in September, the strongest monthly gain since December 2021. Across the broader economy, nonfarm business job openings totaled 7.44 million in September, down from 7.86 million in August, marking the lowest level since January 2021. With 6.83 million individuals unemployed that month, there were approximately 91.8 unemployed workers for every 100 job openings in the U.S. economy. Although job openings still exceed active job seekers by 609,000, the gap has narrowed significantly as the labor market cools. In December 2022, the ratio of job openings to unemployed individuals was nearly 2-to-1, with just 51.8 unemployed workers for every 100 job openings and more than 5.3 million additional openings than available job seekers. Meanwhile, the number of accommodation and food services quits fell from 592,000 in August to 525,000 in September, the fewest since October 2020. The number of quits in the sector has been decelerating sharply, with the averages for 2022 and 2023 being 787,000 and 704,000, respectively. This is a sign that churn in the labor market has ebbed notably in the past couple of years – signaling an end to the “Great Resignation” era. Indeed, quits are now well below the pre-pandemic average of 633,000 seen in the 2017 to 2019 period. At the same time, nonfarm payroll quits dropped from 3.18 million to 3.07 million, falling below the pre-pandemic average of 3.34 million and the lowest since August 2020.
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Restaurants Made Big Changes to Cope With the Pandemic
Lots of them have stuck. Dining, as we once knew it, changed during the COVID-19 pandemic, and some things seem pretty unlikely to go back to how they once were. In March 2020, America’s restaurants were in despair. State after state introduced lockdowns, banning large groups of people, and temporarily shutting eateries. When they started to reopen, new measures were put in place to prevent the spread of the virus. “Many of the health codes restaurants observe now — sanitizing and disinfecting surfaces, maintaining hot water standards and stocked hand wash sinks — were developed during and after the 1918 flu epidemic,” Mary King, a former restaurant manager and current editor of The Restaurant HQ, said. “So, it makes sense that COVID-19 would leave a lasting legacy on the hospitality industry,” she added. Here is a list of a few of the changes which stuck. The QR code revolution: The use of QR codes in restaurants surged during the pandemic. First introduced to replace paper menus, they have now become commonplace. Typically, the QR code is printed somewhere on the table for customers to raise their smartphone camera and transform it into an online PDF menu. Customers can sometimes also use it to order and pay for a meal. Of course, it assumes some things, including tech literacy, smartphone ownership, and a solid cellular data or WiFi connection. Cleaning out in the open: You may have noticed some restaurants are now a lot keener to show just how clean they are. “One of the big changes we’ve seen in fine dining is that, before, the cleaning of things was done discreetly, behind closed doors, to make the service feel more seamless,” Jonathan Kleeman, group beverage manager and executive head sommelier at Tom Sellers Story Group, which runs a two-Michelin-starred restaurant in London, said. “After COVID, it not only became more acceptable but even encouraged to visibly showcase the level of cleanliness,” he said, adding that staff are less likely to hide parts of the service, such as cleaning tables…
Corporate Event Business Strategies
Meet the growing demand and drive more bookings. Corporate events continue to grow and as we plan for the new year, now is the time to prepare your event business to drive those bookings throughout 2025. According to Amex’s Annual Global Meetings and Events data, the 2025 forecast is bright, with increased budgets and a positive outlook from professionals. The demand for face-to-face experiences is surging as the industry emphasizes meaningful human connections. Here at Tripleseat, we are witnessing our customers managing tons of corporate events. Budgets are larger; guest lists are bigger! As a restaurant, hotel, caterer, or unique venue, you should take advantage of the growing demand for corporate events. Are you ready? We’ll cover some proven ways to get you ready for a great year filled with corporate business. Corporate events are a variety of gatherings, meetings, or activities initiated by a company or organization for many reasons. These events vary in scale, from intimate internal team meetings to elaborate conferences and parties. The goals of corporate events vary. Objectives include networking, team building, education, promotional activities, and more. These events are vital for enhancing business relationships, boosting employee morale, and realizing strategic goals. Below are some typical categories of corporate events: Conferences and Seminars, Product Launch Parties, Annual General Meetings, Trade Shows and Expos, Team Building Retreats, Corporate Parties and Celebrations, Training and Workshops, Board Meetings, Investor Relations Events, and Charity and Corporate Social Responsibility Events…
Millennials Want More Seafood
Restaurants must capitalize. Every fall, I look forward to October because I’m a big fan of the weather and Halloween. But the other great thing about October is National Seafood Month. Congress instituted it more than 30 years ago to recognize one of our nation’s oldest industries, one that supports more than a million jobs and contributes more than $100 billion to GDP each year. This October is particularly exciting because we know what more consumers are craving – and it’s not candy. Seafood is a frequently overlooked, sustainable and healthy food source that serves as a flagship menu item for many concepts across the restaurant ecosystem. After the summer ends, National Seafood Month gives restaurant operators another reason to increase this inventory and offer a variety of delicious seafood dishes. But why stop after October? Seafood is a healthy protein option that benefits guests, the planet, and restaurants’ bottom lines—if it is the right type of seafood. It should be available year-round, and according to a recent study, consumers want it to be. According to a recent study by a well-respected industry group, Genuine Alaska Pollock Producers (GAPP), millennials are becoming more drawn to seafood items and in particular—Wild Alaska Pollock. In 2024, 70 percent of millennials are aware of Wild Alaska Pollock, the ingredient behind many QSR fish sandwiches, a four percent jump from the prior year. Importantly, with more millennials aware of Wild Alaska Pollock, 65 percent of millennial consumers reported having a favorable opinion toward it. For restaurant operators looking to stay in front of dynamic millennial consumer preferences, this growth is key. One driver of this growth is millennial focus on sustainability credentials, with 74 percent reporting that sustainability is important to them when purchasing fish products. For perspective, Wild Alaska Pollock is one of the world’s most climate-friendly proteins. The carbon impact of Wild Alaska Pollock is significantly lower than that of chicken, pork, beef and even tofu. Younger consumers are also more focused on being healthy, and with 20 grams of protein, less than one gram of fat and only 90 calories for every serving, Wild Alaska Pollock is a fantastic way to market to their needs. It also comes in easy-to-control, convenient portion sizes that have many readily available applications for varying meals sizes or quick, on-the-go options. Either way, Wild Alaska Pollock has become a must-have menu addition…
TGI Fridays Closes 50 Restaurants
As bankruptcy looms. The struggling casual-dining chain has now closed about 100 locations this year amid a host of challenges. TGI Fridays has closed another large swath of restaurants across the country, continuing the casual-dining chain’s decline toward a potential bankruptcy filing. According to TGI Fridays’ website, the chain now has 164 U.S. locations, 51 fewer than it had two weeks ago. Local media reports from New Jersey, New York, Ohio, and California indicated that TGI Fridays had abruptly shut down in the area in recent days. It was just the latest wave of closures for Dallas-based TGI Fridays this year. The chain closed 36 restaurants in January and another 12 or so in September and earlier this month, bringing the total tally of closures to around 100. It ended last year with 269 locations, according to data from Restaurant Business sister company Technomic. The chain has not responded to emailed questions about the closures. But they appear to be a precursor to a potential bankruptcy. A pair of reports last week said the chain was huddling with advisors and lenders in preparation for a Chapter 11 filing. It is expected to happen in Texas in the next few weeks, according to the reports from Debtwire and Bloomberg. The bankruptcy rumblings continue a roller-coaster year for the chain. In April, it announced plans to merge with U.K. franchisee Hostmore PLC in a deal that was expected to bring some stability to both sides. But by August, that plan was on hold as the two companies worked to sell corporate locations to pay down debt. Then, in September, TGI Fridays was terminated as the manager of its $375 million whole business securitization (WBS). As a result, it lost control of some of its operations, including its franchise business and royalty stream. The rare termination was due in part to an overpayment of a management fee from the securitization to TGI Fridays. Days later, Hostmore called off the acquisition, citing the uncertainty surrounding the WBS issue. Hostmore then filed for the U.K. equivalent of bankruptcy and closed 35 locations. The chain’s tailspin follows years of declining sales and unit counts as consumers shift away from legacy casual-dining brands…
Denny’s Set to Shutter 150 Restaurants
As US dining industry struggles. Denny’s plans to close up to 150 restaurants by 2025, joining the growing ranks of U.S. dining chains that are weeding out poorly performing locations from their portfolios as they face economic headwinds. Officials of Spartanburg, South Carolina-based Denny’s, owner of its namesake chain as well as Keke’s Breakfast Cafe, said they’re closing 50% of those troubled eateries this year and the remainder in 2025. The restaurant operator unveiled its real estate optimization drive, which includes some location remodels, during an investor day presentation given Tuesday in New York for its franchisees and Wall Street. “To be perfectly transparent is we’ve shed, and will continue to shed, a good number of Denny’s restaurants,” said Robert Verostek, the company’s chief financial officer. Denny’s, as have other chains that are slashing their fleets, talked about how difficult the current macroeconomic environment is, coming out of the pandemic and dealing with financially struggling consumers — particularly low-income ones — cutting back spending in stores as well as in full-service restaurants. Denny’s locations are also most concentrated in California, where there is now a high-minimum wage for workers, increasing labor costs for restaurant operators. The year has been so challenging that there has been a number of Chapter 11 filings by restaurant chains, including Red Lobster, Tijuana Flats, Buca di Beppo, World of Beer, Roti, BurgerFi, and Rubio’s. Red Lobster managed to survive and has already emerged with a new owner and a smaller physical footprint. And Denny’s, whose tag line is “America’s diner,” is up against a growing cadre of rivals in the breakfast sector. “Denny’s continues to be a victim of increasing competition from breakfast/lunch concepts like First Watch and Snooze, and A.M. Eatery,” Darren Tristano, CEO of restaurant consultant FoodserviceResults, told CoStar News in an email Wednesday. “They are challenged by the efforts to maintain breakfast, lunch and dinner day parts. Although they continue to provide value pricing, their customer base, with a strong boomer generation, continues to age and look for better quality offerings. In addition to full-service competition, fast-casual restaurants like Panera offer healthy options and drive-through convenience”…
Did You Know?
Strategies for Achieving a Zero-Waste Kitchen. The restaurant industry has been undergoing some significant changes of late. One of the most prominent is its engagement in the zero-waste movement. Leaders in the sector have noted not just the potential to attract customers who are increasingly making purchasing decisions based on their environmental ethics. It’s also a more fiscally responsible approach to business, reducing overheads caused by unnecessary resource consumption. Is zero waste achievable? It is, but it’s also important to recognize that reducing unnecessary consumption is a process. You’re unlikely to eliminate all your sources of overuse immediately. It takes commitment alongside some investment in specific areas of operations. So, let’s look a little closer at the concept. What strategic steps can you take to bring your kitchen closer to achieving zero-waste?…
Employee Tip
National Restaurant Association Educational Foundation awards over 300 aspiring restaurant leaders more than $1m in scholarships. Highlighting the restaurant industry’s role as a beacon of career opportunity and advancement, more than 300 post-secondary students from 130 colleges and universities and 44 states have been selected to receive a scholarship from the National Restaurant Association Educational Foundation (NRAEF) during the 2024-2025 academic year. In total, the NRAEF is awarding more than $1 million to invest in post-secondary education for future restaurant workers. This year’s scholars highlight the depth and breadth of industry careers for people of all walks of life. Recipients range in age from high school students to those nearly 60 years old, and 65 percent indicate they are the first in their family to attend college…
