With most restaurants allowed to operate at full capacity across the country in 2021, the supply chain emerged as one of the largest challenges to the recovery of full-service restaurants from the pandemic. Processing and transportation delays related to the pandemic led to shortages of several ingredients, including chicken and oat milk.
Takeout orders were a lifeline for full-service restaurants throughout 2020. With indoor dining closed across much of the US, restaurants relied on off-premises orders to stay in business.
The US economy staged a strong recovery from the pandemic in 2021, but inflation has been a challenging side-effect of that recovery. For restaurants, managing the rising cost of food has become a major challenge in their overall recovery.
Third-party ordering saw massive growth in the US throughout the course of the pandemic. While these services helped many restaurants, especially independents, stay in business during the crisis, they come at a cost to restaurant owners.
With third-party delivery services being available at most restaurants across the country, restaurant operators are now looking at how to increase delivery revenue. While many restaurants will simply offer promotions, some restaurant operators have begun to open virtual restaurants out of their existing kitchens.
Restaurants have faced many increases in costs since the beginning of the pandemic, such as purchasing more takeout containers and higher food prices. As restaurants began to reopen in 2020 and 2021, many added service surcharges to customers’ bills.
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FSR (full-service restaurants) encompasses all sit-down establishments where the focus is on food rather than on drink. FSR is characterized by table service and a relatively higher quality of food compared to quick-service units. Menus offer multiple selections and may include breakfast, lunch and dinner. Preparation of food products is often complex and involves multiple steps. NOTE: restaurants types catalogued in this segment refer to table-service only (outlets with a proper “full table service:” wait staff attending customers and taking orders at the tables). Outlets with “limited table service” are excluded from FSR. For example: outlets where customers order their food at the counter are excluded (even though the waiter will then bring the food at the table).See All of Our Definitions
This report originates from Passport, our Full-Service Restaurants research and analysis database.
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