2016: A Tough Year for the Restaurant Industry

A Tough Year for the Restaurant Industry:

Last year proved to be difficult for the restaurant industry. Nation’s Restaurant News reported yesterday that Buffalo Wild Wing’s fourth quarter net earnings plummeted 38.2%. The company’s fourth quarter ended on December 25th, 2016. Company-owned restaurants saw same-store sales fall 4% while franchised stores saw sales fall 3.9%. Buffalo Wild Wings CEO Sally Smith made a statement about the issue, citing “the challenging restaurant environment” as the source of struggle. Chipotle also took a hard hit in their fourth quarter. As the company dealt with food borne illness outbreaks across the country, net incomes fell 76%.

It is no surprise that restaurants nationwide faced similar hardships. For many restaurants, the overall decline in net profits can be traced back to two main contributing factors: weak same-store sales and slow traffic. According to the National Restaurant Association, 42% of operators reported a same-stores sales decline in December of 2016. Operators also reported a 47% decline in traffic for that same month.

Expectations and optimism remain high, though, for the year ahead. About 39% of restaurant operators told National Restaurant News that they expect same-store sales and traffic to improve within the next 6 months. This is a 25% jump from when operators were surveyed back in October of 2016. Also heartening for the industry is that 57% of restaurant operators surveyed expect to expand or remodel within the next 6 months.

Dedicated to Success in 2017:

Here at Patrice and Associates, we are also optimistic about the year ahead. As the nation’s leading hospitality recruiting firm, we know how fundamentally important staffing is to a restaurant’s success. Finding strong, talented candidates to fill leadership positions can make all the difference when running an effective business. Strong leaders help shape a business’s culture and can be instrumental in improving overall service, efficiency, profitability, and more.

Overall, we are excited to continue working hard in 2017. Every day, our dedicated Franchisees and Recruiters help find and place the restaurant industry’s top leaders. By ensuring the success of our clients, we are also ensuring the growth and prosperity of the restaurant industry itself. We look forward to continue doing so now and for many years to come.

What Clients Say About Patrice & Associates

  • I am very proud and pleased to say that I start my new career with Hooters this up coming Tuesday! I am beyond excited to start my new beginning.  I would like to take a moment to point out that my recruiter Rick Kallsen was absolutely amazing! From day one of my job search he set my mind at ease with the whole process of finding and applying to new potential employers and gave me a positive feeling of support. He even updated my resume. Rick was spot on when introducing me to employers that matched exactly the kind of environment I was looking for. He provided me with solid advise on communicating with potential employers and throughout my entire interview process and job search Rick was always a phone call away , he always answered any questions I had,  and also gave me positive feedback. I defiantly felt as though we were a team and he had my best interest at hand. I am grateful to have had Rick as my recruiter! Thank you so much Rick! Shonti Bennett
  • Corina is the best recruiter that anyone could ask for!  She helped me lock down the most amazing job ever! Jordan GoetzBeer Program Manager, HopCap Minneapolis
  • Corina is phenomenal to work with!  I got a phone call from her, within a week I had an interview and a week after I accepted a job offer.  She is very polite and professional, and encouraged and coached me throughout the process.  Most importantly, she is very upfront and honest and will tell you exactly what to expect throughout the job search process.  I would absolutely recommend her to anyone looking for a hospitality management position! Sean KaplanRestaurant Manager, NYC
  • Thanks again for sending so many well qualified candidates and being so thorough in your communication. I surely will keep your email close for future openings. Steve Cestari, Director of New Store Openings & Talent AcquisitionBarfly Ventures-HopCat
  • All of the candidates you sent us were very qualified and that is something we lacked in the search we did on our own. It was reassuring to me as we went into the interviews that we had 3 very good candidates and I was confident we would find a fit. Josh Luehmann, Director of Golf/GMSouthview Country Club