The middle class was at one time the strongest, most stable economic sector in the United States.
In the last decade, however, the middle class has begun to shrink drastically, with the highest impacted states dropping by 5%. Economists suggest that the plunge in middle class American families is due to income gaps and rising living expenses. The decline of the American middle class, the backbone of our great nation, is a cause for great concern for businesses across the country. [pullquote-left]The fall of the middle class can have grave effects on society and the American economy. [/pullquote-left] The recession brought about a fear of spending within consumers, inducing a lack in expenditures necessary for economic growth. The concept of ‘spending money to make money’ more than applies to this scenario. When Americans hold on tighter to their wallets, businesses of all kinds suffer the consequences.
The restaurant industry is no exception to this economic downfall, and their profits have been negatively impacted. Quick-service restaurants receive almost 80% of all restaurant visits, and the popularity of sit-down restaurants is growing at a sluggish rate. Lower income consumers more frequently visit quick-service restaurants, but due to the economic recession, their visits have become much less frequent.
In hindsight of all the negativity, there is still some good news.
2014 has welcomed economic growth, and though the middle class is dwindling, they still make up a significant portion of the U.S. population. The middle class helped build America, and they continue to do so, making it important not to disregard their economic potential. To overcome the obstacles ahead, restaurant operators will have to find ways through marketing and advertising to entice the middle class back into their eateries. [pullquote-right]On the bright side, the marketing opportunities are endless for restaurants.[/pullquote-right] A simple Google search will supply you with the creative ideas you need to get started, and if it’s in your budget, you may consider hiring a marketing specialist to successfully implement marketing efforts for your restaurant.
While we can’t control the economic activity of our country, QSROnline can help with assessing and lowering your costs during the shifting economic times. We can provide you with the most up-to-date data through systems integration and data automation. Our restaurant management software assists in lowering your food cost, proactive employee scheduling, inventory management, and restaurant accounting. Whatever the future may bring, QSROnline can help your restaurant adapt to the ever-changing economy, cutting costs, and retaining greater profits.
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