Driven by a stronger economy and historically high levels of pent-up demand among consumers, restau-

rant-industry sales are expected to hit a record high in 2014. According to the National Restaurant Association’s Restaurant Industry Forecast report, restaurant-and-foodservice sales are projected to total $683.4 billion in 2014, up 3.6 percent from 2013.

In inflation-adjusted terms, industry sales are projected to increase 1.2 percent in 2014. Although 2014 will represent the fifth consecu-tive year of real growth in restaurant sales, the gains remain below what would be expected during a normal post-recession period.

In 2014, the restaurant industry will employ 13.5 million individuals and remain the nation’s second-largest private sector employer. The

restaurant workforce continued to grow at a robust rate in 2013, keeping the industry among the economy’s leaders in job creation. Eating-and-drinking places are projected to add jobs at a 2.8 percent rate in 2014, which will represent the 15th consecutive year in which industry job growth outpaced the overall economy.

2014 Restaurant Industry Forecast

Present

Restaurant Industry’s Share of the Food Dollar

*projected

Adding It All Up: $683.4 billionProjectedrestaurantindustrysalesin2014

*Eating places include tableservice restaurants and quickservice restaurants, cafeterias and buffets, social caterers, and snack and nonalcoholic beverage bars.

Eating Places*:$455.9billion

Bars and Taverns:$20.0billion

Managed Services:$47.1billion

Lodging Places:$34.8billion

Retail, Vending, Recreation, Mobile:$66.4billion

CommercialrestaurantServices $624.3billion

NoncommercialrestaurantServices $56.6billion

militaryrestaurantServices $2.5billion

25%

47%

1955

RESTAURANT INDUSTRY EMPLOYMENT

11.9million

13.5million

14.8million

2004 2014 2024* *

Restaurant Industry Sales(In Billions of Current Dollars)

*projected

$683.4

$42.8

$119.6

$239.3

$379.0

$586.7

2014

1970

1980

1990

2000

2010

*

eXeCuTiveSummarY

SaleS&eCoNomiC FORecAsT

Fastest Restaurant Job GrowthProjected growth in restaurant-and-foodservice jobs, 2014 to 2024

1 Arizona 15.6%

2 Texas 15.3%

3 Florida 15.0%

4 Nevada 14.7%

5 Georgia 14.4%

6 NorthCarolina 14.0%

7 Alaska 14.0%

8 Alabama 13.9%

9 Utah 13.4%

10 Arkansas 13.3%

11 Colorado 13.3%

12 Delaware 13.0%

Source:National Restaurant Association

Tableservice Restaurant Segment Sales Growth

Nominal Sales Growth Real (Inflation-adjusted) Sales Growth

Source: National Restaurant Association; *projected

3.5%

1.1%

3.1%

0.4%

2.3%

0.1% 0.2%

2.6%

2011 2014*2012 2013

Better Than 2013 About the Same as 2013 Down From 2013

Source: National Restaurant Association, Restaurant Trends Survey, 2013

27%

66%

7% 8%

52%

10%

24%

43%

33% 31%

44%

25%32%

51%

FamilyDining FineDiningCasualDining FamilyDining FineDiningCasualDining

TableserviceSalesin2014 TableserviceProfitabilityin2014

TableserviceOperators’OutlookforSalesandProfitabilityin2014

38%37%

55%

17%

Tableservice Operators Expect Legislative & Regulatory Issues to Pose Challenges in 2014Topchallengesexpectedbytableserviceoperatorsin2014

Family Casual Fine Dining Dining Dining

HealthCareReform 25% 22% 16%

TheEconomy 10% 11% 24%

Government 21% 8% 6%

Building&MaintainingSalesVolume 9% 14% 7%

FoodCosts 7% 8% 10%

Recruiting&RetainingEmployees 6% 10% 6%

Competition 5% 8% 7%

MinimumWageIncrease 9% 3% 7%

LaborCosts 4% 6% 1%

Profitability 2% 4% 3%

Source: National Restaurant Association, Restaurant Trends Survey, 2013

TableServiCe TReNdsWorkForCe OuTlOOk & TReNds

Restaurant Operators Plan to Focus More on Recruiting and Retaining Employees

Source: National Restaurant Association,

Restaurant Trends Survey, 2013

Devote More Resources in 2014 Devote Fewer Resources in 2014

Familydining

36%

4% 3%1%

3%6%

47%46% 48%50%

Casualdining

Finedining

Quick-service

FastCasual

Projected 2014 Limited-Service Sales Growth

Nominal Sales Growth Real (Inflation-adjusted) Sales Growth

Source: National Restaurant Association

limited-Servicerestaurants

4.4%

2.1%

5.0%

2.7%2.5%

0.1%

Cafeterias,Grill-buffets,andbuffets

SnackandNonalcoholicbeveragebars

Better Than 2013 About the Same as 2013 Down From 2013

Source: National Restaurant Association, Restaurant Trends Survey, 2013

Quickservice FastCasual

Limited-ServiceSalesin2014 Limited-ServiceProfitabilityin2014

Limited-ServiceOperators’OutlookforSalesandProfitabilityin2014

29%

62%

9%

40%

5%

55%

22%

38% 40%

50%

34%

16%

Quickservice FastCasual

Limited-Service Operators Expect Legislative & Regulatory Issues to Pose Challenges in 2014Topchallengesexpectedbylimited-serviceoperatorsin2014

Fast Quickservice Casual

HealthCareReform 42% 9%

TheEconomy 17% 14%

Government 8% 16%

Building&MaintainingSalesVolume 5% 18%

Recruiting&RetainingEmployees 6% 14%

FoodCosts 5% 9%

LaborCosts 6% 5%

MinimumWageIncrease 5% 4%

Competition 0% 5%

Profitability 5% 0%

Source: National Restaurant Association, Restaurant Trends Survey, 2013

limiTeD-ServiCe TReNds

TeCHNoloGY TReNds

Smart(phone) Restaurant ActivitiesConsumerswhosaytheywouldbelikelytouseasmartphoneortabletforrestaurant-relatedactivities

All Age Age Age Age Age adults 18-34 35-44 45-54 55-64 65+

Lookuplocationsordirections 67% 88% 78% 63% 60% 31% 80%

Ordertakeoutordelivery 52% 74% 62% 45% 39% 20% 67%

Userewardsorspecialdeals 50% 70% 58% 47% 38% 21% 65%

Makeareservation 46% 59% 60% 38% 40% 22% 56%

Lookupnutritioninformation 42% 55% 46% 38% 35% 23% 54%

Payforyourmeal 24% 43% 22% 16% 16% 9% 32%

Source: National Restaurant Association, Technology Innovations Consumer Survey, 2013

Childrenunder18inhousehold

Restaurants are Socially ActivePercentageofrestaurantoperatorswhoarecurrentlyactiveonsocialmedia

Family dining Casual dining Fine dining Quickservice Fast Casual

Source: National Restaurant Association, Restaurant Trends Survey, 2013

31%40%

67%59%

49%

19%

6% 6%11%13%

36% 35%

58%52%

16%

veryactive NotactiveSomewhatactive

ToP52014meNuTreNDS

TAbleseRvice

1 Locallysourcedmeat

andseafood

2 Locallygrownproduce

3 Environmental

sustainability

4Healthfulkids’meals

5 Gluten-freecuisine

Source: National Restaurant

Association, What’s Hot in 2014

chef survey

limiTed-seRvice1 Gluten-freeitems

2 Healthfulkids’meals

3 Spicyitems

4 Fruit/vegetablesidesin

kids’meals

5 Locallysourced

produce

Source: National Restaurant

Association, Restaurant Trends Survey, 2013

Consumers Go LocalPercentofrestaurantoperatorswhosaytheircustomersaremoreinterestedinlocallysourceditemsthantheyweretwoyearsago

Source: National Restaurant Association, Restaurant Trends Survey, 2013

72% 73%

91%

50%

70%

Familydining

Casualdining

Finedining

Quickservice Fastcasual

Restaurants Are Investing in TechnologyRestaurantoperatorswhosaytheywilldevotemoreresourcestotechnologyin2014

Family Casual Fine Quick- Fast dining dining dining service casual

Customer-facingtechnology 41% 50% 51% 43% 57%

Front-of-the-housetechnology 28% 35% 23% 39% 47%

Back-of-the-housetechnology 24% 30% 19% 33% 38%

Source: National Restaurant Association, Restaurant Trends Survey, 2013

For details on member benefits

and how to access the NRA’s

2014 Restaurant Industry

Forecast report, visit

Restaurant.org/Forecast.

Foundedin1919,theNational

RestaurantAssociationisthe

leadingbusinessassociationfor

therestaurantindustry.Together

withtheNationalRestaurant

AssociationEducationalFounda-

tion,ourgoalistoleadAmerica’s

restaurantindustryintoanewera

ofprosperity,prominence,andpar-

ticipation,enhancingthequalityof

lifeforallweserve.Foradditional

restaurantindustryresearchbeyond

thescopeofthisreport,visit

Restaurant.org/Research.

TeCHNoloGY TReNds Continued

FooD&meNu TReNds

Nutrition Makes a DifferenceConsumerstakenoticeofhealthfulmenuoptions

All Adults Men Women

Morehealthyoptionsavailablecomparedtotwoyearsago 81% 79% 84%

Morelikelytovisitarestaurantthatoffershealthyoptions 72% 67% 76%

Source: National Restaurant Association, National Household Survey,

2013