Seasonal Analysis of Restaurant Trends

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Seasonality of the Restaurant Industry: Friend or Foe? The restaurant industry can be a fickle friend. Business trends directly with the economy and is linked with a dizzying amount of other factors, enough to make any manager go crazy. Yet at the same time the industry is lucrative and therefore enticing. The industry has been a contributing factor in the slow recovery from economic recession and is showing growth in sales (Stensson, 2011). Specifically, the fast food industry if projected to grow at a slightly higher rate of 3.3% over that of the full service industry at 3.1% (Stensson, 2011). With expanding sales comes higher demand and restaurant jobs are estimated to rise by 1.3 million positions by 2021 (Stensson, 2011).…show more content…
Funding the tourist season faculty can be fickle as well. Many restaurants that rely on snow or sun for the tourist crowd must close down in the off season while still paying the fixed costs associated with restaurant ownership like rent and utilities (Brumback, 2000). Though tourism in the U.S. is on the rise in 2011 and 2012 it has a direct link to weather trends and when $1 of every $3 spent in the restaurant industry, according to the National Restaurant Association, is tourism related the reliance on weather can be huge (Elan, 2011). Obviously restaurants have been able to “weather the seasons” of food service seasonality. It is not a new topic but a continuous challenge which must be addressed, met, and overcome. But how? Over the years owners and managers alike have tried several angles in combating seasonal lulls and drops in business. There are five basic areas that seem to have the most success: seasonal marketing, seasonal menus, seasonal posturing, using holidays or seasonal peaks as targeting opportunity, and brand or business loyalty. When a corporation recognizes where the seasonal weak points in business are during the year it can use promotions and strategic marketing to even out inconsistencies in sales. Seasonal menus can be twofold assets due to current customer demands as well as cheaper cost of production. Seasonal posturing refers to being prepared for high and low seasons by managing staff size and raw
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