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Hospitality/Tourism Committee July 9th, 2009. Paul Hartgen Restaurant Association of Maryland. “Restaurant Industry” All meals/snacks prepared away from home, including all takeout meals and beverages. GBC Hospitality/Tourism. The Industry Mosaic. Fullservice Quickservice
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Hospitality/Tourism Committee July 9th, 2009 Paul Hartgen Restaurant Association of Maryland
“Restaurant Industry” All meals/snacks prepared away from home, including all takeout meals and beverages. GBC Hospitality/Tourism
The Industry Mosaic Fullservice Quickservice Cafeterias and buffets Caterers Snack and nonalcoholic beverage bars Managed services/contractors at Industrial plants Hospital/nursing homes Schools and universities Airlines Recreation and sports centers Lodging places Retail hosts Book stores Service stations Convenience stores Self-operated restaurant services Military restaurant services GBC Hospitality/Tourism
GBC Hospitality/Tourism US Annual Sales: $566 billion Maryland Annual Sales: $9 billion
GBC Hospitality/Tourism US Employees: 13 million Maryland Employees: 174,000
GBC Hospitality/Tourism US Locations: 945,000 Maryland Locations: 9,600
GBC Hospitality/Tourism Sales YTD + .4% or + $11,115,000
GBC Hospitality/Tourism Sales YTD - 1.98% or - $6,343,650
Restaurant Industry’s Shareof the Food Dollar GBC Hospitality/Tourism 1955: 25% Present: 48.0% Source: National Restaurant Association
GBC Hospitality/Tourism Wholesale Food Prices Falling for the First Time in Seven Years Wholesale Food Prices – Annual Growth Rates
Menu Prices on Pace to Post Strongest Growth in 27 Years Menu Prices – Annual Growth Rates Source: Bureau of Labor Statistics *Year-to-Date through April GBC Hospitality/Tourism
Top Challenges Facing Restaurant Operators May 2007, May 2008, May 2009 MAY 2007 R&R Employees35% Sales Volume 12 Gas/Energy Prices 12 Food Costs 7 Competition 5 The Economy 3 MAY 2009 The Economy 43% Sales Volume 25 R&R Employees 5 Food Costs 4 Labor Costs 3 Competition 3 MAY 2008 The Economy 27% Food Costs 21 Sales Volume 15 R&R Employees 11 Gas/Energy Prices 10 Labor Costs 1 Source: National Restaurant Association, Restaurant Industry Tracking Survey GBC Hospitality/Tourism
Locally grown produce Bite size desserts Organic produce Nutritionally-balanced children’s dishes New/fabricated cuts of meat (e.g. Denver steak, pork flat iron, bone-in Tuscan veal chop) GBC Hospitality/Tourism Hot/Trendy Food Offerings Fullservice Restaurants Source: National Restaurant Association; American Culinary Federation
Healthy options in kids meals Organic items Locally-sourced items Spicy items Wraps/pitas/tortillas GBC Hospitality/Tourism Hot/Trendy Food Offerings Quickservice Restaurants Source: National Restaurant Association, Quickservice Restaurant Survey
Going Green Percent of operators, by type of operation, who plan to devote more oftheir resources to green initiatives in 2009 Family dining Casual dining Fine dining Quickservice 43% 45% 50% 27% Source: National Restaurant Association GBC Hospitality/Tourism
GBC Hospitality/Tourism Unfulfilled Demand for Restaurant Services Remains High Source: National Restaurant Association
Americans Love RestaurantsPercent of adults who said they enjoy going to:Restaurants 90%Grocery Stores 55% GBC Hospitality/Tourism Source: National Restaurant Association
State of the Industry Recap US Restaurant-industry sales will reach a record high Weak economic fundamentals continue Consumer spending challenges Menu – healthy kids meals, local sourcing Workforce – higher productivity thru training and technology Marketing – new paradigm for restaurants Green initiatives more critical A positive future despite current challenges GBC Hospitality/Tourism
GBC Hospitality/Tourism In 1927 a small group of Baltimore area restaurateurs met to deal with some of the challenges facing the foodservice industry due to the economy.
GBC Hospitality/Tourism Looking forward… Promote, Protect and Improve
GBC Hospitality/Tourism Promote…
GBC Hospitality/Tourism Protect… Federal: • Card Check • Menu Labeling • Immigration • Travel & Tourism • Tip Wage Increase*
GBC Hospitality/Tourism Protect… State Issues: • Mandatory Shift Break • Gift Certificate Escheatment • Tourism*
GBC Hospitality/Tourism Protect… Local Issues: • Plastic/Paper Bag Tax • New Fees & Taxes
GBC Hospitality/Tourism Improve… 85 Maryland High Schools 3,000 High School Students
GBC Hospitality/Tourism Economy: Working to re-build consumer confidence
Thank You Paul Hartgen Restaurant Association of Maryland