By Robert Luz, Massachusetts Restaurant Association
One of the great benefits of my job is that I get to talk frequently with restaurant owners from across the state who operate a wide spectrum of concepts and constituencies. Talking about the restaurant industry excites me. The career of choice for more than 300,000 Massachusetts residents, did you know that one in three workers had their first job in our industry, and one out of two residents will work in a restaurant in their lifetime?
Restaurant owners are some of the most charitable individuals we all know, as nine out of 10 restaurants nationally contribute to charitable endeavors, and I am sure that number is higher in our local communities, just think of all the parent-teacher groups, youth sports activities and charitable benefits to which your local restaurant has contributed.
Operators are some of the most optimistic people I know, as many of them couldn't imagine being in another line of work. They truly enjoy being in the business of serving their guests.
However, recently these operators have been sounding an alarmist tone. For many, restaurant sales in 2018 were mostly flat year over year. Sure, Thursday, Friday and Saturday night business is there for the most part, but it is getting more difficult to attract diners to non-traditional dining times.
Restaurant operators across Massachusetts, are facing an unprecedented increase in the financial burden to stay operational. Consider:
* Increased occupancy costs as rents and real estate taxes continue to skyrocket;
* Health insurance premiums that have doubled and tripled in recent years;
* A substantial increase in the minimum wage and the tipped wage as a result of the so called "grand-bargain;"
* Increased food, energy and operational costs across the board; and
* The tightest labor market in history where no restaurant is operating at full capacity. This is especially true in the western region of the state with the opening of the MGM casino.
While facing increased competition from all aspects of the business, whether it is food trucks, grocery stores recreating themselves as full service restaurants, or pharmacies selling sushi to go (Walgreen's), the restaurant industry is also an industry with a high risk of failure and a low profit margin. The average restaurant spends 95 cents of every dollar on the production and service of the meal.
That having been said, it is not all negative out there. The economy continues to stay strong, as unemployment rates remain historically low and consumers continue to act on their pent up demand for eating out, the restaurant industry outlook across Massachusetts for 2019 is cautiously optimistic.
Last year, food and beverage operations collected $1.185 billion in meals tax collections. This is the fourth consecutive year the industry has eclipsed the billion dollar threshold. Nationally, the restaurant industry has added more than 200,000 jobs in the last year.
As an industry we are adding jobs, we are adding seats and, now, we need to add guests. Our restaurants are only as strong as our customer's desire to go out. Is there a better experience than meeting with friends and family and enjoying a local restaurant? Your restaurant operators need you. Maybe head out at a non-traditional time, think Tuesday lunch or Monday dinner?
This promises to be an exciting year for the Massachusetts Restaurant Association. This winter we will host our annual ProStart cooking and management competition at Gillette Stadium. In years past, vocational schools from Amherst, Northampton, Holyoke and South Hadley have all competed.
Don't forget to mark your calendars for the New England Food Show, March 3 through 5 at the Boston Convention Center & Exhibition Center. The food show is the Northeast's largest, most attended, trade show in the hospitality industry as we continue our partnership with the National Restaurant Association.
Our industry is vital to the Massachusetts economy and continues to pave the way for development across the commonwealth. Every dollar spent in Massachusetts's restaurants generates an additional 95 cents in sales for the state economy, every million spent generates 21.5 jobs and our industry employs nearly 10 percent of the state's entire workforce.
Let's keep the momentum going, I hope you will come out to dinner, because I know I will!
Robert Luz is president and CEO of the Massachusetts Restaurant Association. To learn more about the association and its work, go online to themassrest.org.