RESTAURANT OPERATORS’ SENTIMENTS – SEPTEMBER 2012

In visiting with many operators during September it became apparent that “uncertainty” is the prevalent attitude. The only caveat was this month many are beginning to move forward with future business plans. So there is a hint of optimism.

The main issues that are driving the skepticism are:

• The upcoming elections – who wins and their direction for the business community (which is the major issue).

• Healthcare reform – many parts are still undefined by the government.
• Rising commodities pricing – where is the tipping point?
• Shifting consumer spending – they swing from frugality to liberal spending without much warning.
• Impending plethora of government regulations and the cost of compliance
• The economy as a whole – what is ahead?

Any of these issues by themselves have a host of concerns for the restaurant industry as well as small business owners; but as a whole, implications of their potential to disrupt business growth has created the environment where the majority of operators have had misgivings as well as confusion about the future. The caveat indicates a slight shift in optimism. It appears more operators are determining which of the issues they can control or adapt to; and at the very least, they are beginning to make strategical plans for the future.

The slight shift in optimism appears to be correlated to the election. Those operators that support the current administration believe business is currently OK but will improve by giving more time to the incumbent. Those that support the challenger believe business is currently doing badly but will improve once their candidate is elected. An odd paradox, but none the less, it is the sentiment of many operators.