Restaurant and Bar Spending Increases

increasing trendsAccording to the U.S. Census Bureau, spending at bars and restaurants is on the increase. The restaurant and bar spending increase is 3.9 percent in the first six months of 2013 compared to the same time frame a year ago. It’s feeding restaurant and bar owners’ confidence.

Sales in the first quarter were up 4.5 percent with total sales nationwide at $136.1 billion. April sales were up 3.7 percent, logging the highest monthly figure since December 2012, a month with typically high sales due to holiday dining tendencies. The trend is positive, with restaurant sales increasing steadily since the low-water mark of $37.3 billion in March 2008.

Additionally the U.S. Bureau of Labor Statistics (BLS) also released data that shows an increase of food purchased away from home steadily increasing. Average household expenditures show expenditures for food away from home at $2,505 in 2010, $2,620 in 2011, and $2,678 in 2012, representing a 4.6 percent increase from 2010 to 2011 and a 2.2 percent increase from 2011 to 2012.

BLS data indicates that the Latino/Hispanic households show the greatest household budget spent on food (including both away-from-home and at-home food purchases) with 15.5 percent spent on food, compared to 12.6 percent average share of household budget spent on food for white households and 12.1 percent spent by African-American households.

National Restaurant Association Concurs with Spending Increase

Restaurant spending is also increasing according to the National Restaurant Association (NRA). For 2013, the organization projects food service operators will spend a record $237.2 billion from industry suppliers. Last year’s projections were $225.4 billion. Of the increase, $66 billion is projected to come from full-service establishments. The NRA also noted that nearly 50 percent of restaurant operators made capital expenditures for equipment, expansion or remodeling in the latter part of 2012 with indications that they will continue to ramp up capital spending in 2013. Remodeling and renovations represent the higher capital expenditures with 46 percent indicating that’s where they would devote resources. Thirty percent of full-service operators indicating they would be spending more on new equipment in 2013.

Finally, signs and trends are positive for the food service industry!

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