Predictions for 2008
What will the year hold for Georgia’s restaurant industry?
January/February 2008
By Debby Cannon, Ph.D., CHE
Director, School of Hospitality
Robinson College of Business
Georgia State University
As this article is being written in late 2007, the drought conditions in Georgia are the major news story gaining national attention. Two thirds of the state, encompassing sixty-one counties, is under extreme and exceptional drought conditions. With La Ni�a conditions expected to persist, climatologists are not predicting a better picture for 2008 with drought conditions expected through spring and possibly summer in Georgia, Alabama and Florida.
How will the drought affect the restaurant industry in Georgia? While the impact on crops, food prices and the overall economy is not exactly known, it seems inevitable that there will be financial repercussions along with the restaurant and foodservice industry having to contribute to water conservation. With 8,000 of the state’s 11,000 restaurants located in the Atlanta area, part of the region hardest hit, the industry will no doubt be affected.
On a larger scale, the idea of water conservation is tied to numerous “green” issues that the restaurant industry is starting to address in a more unified, formalized way. The National Restaurant Association, along with state associations like Georgia’s, are making strides in sustainable recommendations – from recycling and waste management to energy conservation – and the implementation of these will increase significantly in 2008.
As Nation’s Restaurant News reported in October 2007, the evolution of greening the industry is progressing so quickly that it is a “moving target.” Utilizing recent technological advances that provide environmentally responsible results as well as a return on investment is an optimum outcome such as in saving on trash removal and utilities. One such example, being piloted in the United Kingdom, converts garbage from eleven McDonald’s restaurants into heating for 130 buildings thereby keeping over 1,200 tons of trash out of landfills each year.
Restaurant operators will be challenged to find the right balance in their green approaches. Not all solutions are dependent on the latest technology. Recycling food scraps to be turned into compost which can be sold to farmers and gardeners is an example of a low-tech green approach catching-on around the nation.
Another part of the sustainable movement includes the buy-local movement of purchasing regional products – which has also escalated around the nation. Also growing is the use of organic food. With statistics from a recent Harris Poll showing that a very large majority of the public believe organic food to be safer for the environment (79%) and healthier (76%), restaurants will increasingly react by including some organic products on the menu. While the regular buyers of organic food are still a minority, the percentage of such buyers is growing – particularly among certain age groups such as those 18 to 30 or Echo boomers and ages 31-42 or Gen Xers.
What other top issues and trends are likely to be seen in 2008? Employee issues have been at the top of the list for many years and will continue as a major concern in 2008 with the population of 46 million Baby Boomers starting to retire. Some experts predict that by 2010 there will be 10 million more jobs in the United States than people. The younger workforce (particularly those in the 25 to 34 range) is significantly smaller. This shift is coupled with expected job growth in Georgia’s restaurant industry. A 20.4% increase in jobs is expected between 2007 and 2017 taking the number of restaurant employees in Georgia from 382,500 to 460,400.
For an industry that has attracted younger workers, the changing labor force is a major concern. Now is the time to proactively plan ways to be at the forefront of selecting and retaining employees to competitively fight in what has been termed the “global talent war.” Companies who are likely to succeed will relate to the five factors recently found to be most important to younger workers in selecting employers: 1) Opportunities for advancement; 2) Good training responsibilities and the chance to develop new skills; 3) Good people to work with (co-workers); 4) Good people to report to (supervisors); and 5) Challenging work.
From the customer side, Georgia has a great opportunity to gain more of the culinary tourism market. The excursions of culinary travelers focus on unique and memorable eating and drinking experiences. This segment of travelers comprises one-fifth of the United States leisure market. With Georgia ranking as the eighth largest tourism economy in the nation, there are opportunities to attract and extend stays of visitors to experience the culinary distinctions and talents of the state. Partnerships between restaurants – from casual to fine dining – and state tourism organizations, local convention and visitors bureaus, travel publications and lodging properties will enhance the visibility of dining experiences in Georgia to capture the market share of these culinary explorers.
