• by Karlene Lukovitz  @KLmarketdaily, February 3, 2012

Tough as the economy has been on the restaurant industry, the National Restaurant Association projects that its sales will grow by 3.5% in 2012, to reach a record $632 billion.

The association’s 2012 Restaurant Industry Forecast reports that 2011 sales topped $600 billion. While the report summary announcement did not specify how that compares to 2010, last year’s forecast projected that 2011 industry sales would reach a record $604 billion, which would represent a 3.6% increase over 2010’s sales. As of 2000, the industry’s sales were $379 billion.

Overall employment in the industry will reach 12.9 million this year, representing 10% of the total U.S. workforce, according to the report. Restaurant jobs should grow at a rate of 2.3%, versus the projected 1.3% gain in total U.S. employment.

In 2011, wholesale food prices had the largest annual increase in three decades. In 2012, prices are expected to continue to rise for some commodities, but decline for others. One-third of restaurant sales go toward food/beverage purchases.

Consumer Trends

The good news is that there’s substantial pent-up demand for restaurant services: Two out of five consumers say that they are not using restaurants as often as they would like.

Restaurant operators who understand and leverage consumer trends, and offer the right incentives, will succeed at attracting new customers and increasing repeat business, the association notes.

Food quality, customer service quality and value are consumers’ top priorities in choosing a table-service restaurant, according to the association’s research. For QSRs, customers’ top priorities are food quality, value and speed of service. 

The top menu trends relate to local sourcing and nutrition, and kids’ nutrition, in particular.  Nearly three-quarters of consumers say that they’re more likely to visit a restaurant that offers locally produced food items, and more than half of all restaurants currently offer locally sourced produce. 

Similarly, nearly three-quarters report that they’re trying to eat more healthfully when they dine at restaurants, as compared with two years ago. A majority of restaurant operators concur that customers are ordering more such items. 

Technology Trends

Although wireless payment and iPad menus are not yet commonplace, there is strong consumer interest in such options. 

Nearly 4 in 10 consumers say that they’d be likely to use an electronic ordering system and menus on tablet computers at table-service restaurants. About half indicate that they would use at-table electronic payment options and a restaurant’s smartphone app to view menus and make reservations.

At QSRs, about 4 out of 10 consumers say that they would place online orders for takeout, use in-store self-service ordering kiosks, and use smartphone apps to look at menus and order delivery. 

Email and text messaging are proving effective ways for restaurant operators to reach consumers. About 3 in 10 adults say they’d like to receive an email with daily specials, while about one in five prefer text messages with similar information.

Social media is also opening up growing marketing opportunities. Nearly a third of consumers say that they would be likely to sign up if a restaurant made its specials available on Facebook or Twitter.

More than 9 out of 10 operators report that their restaurants will likely be using Facebook within the next year or two, with use of Twitter and smartphone apps expected to rise, as well.