For six years in a row, the restaurant industry has reported significant sales and job creation growth—thanks in large part to restaurants experimenting with new ways to not only draw us to their tables, but also bring their tables to us.
Today’s restaurants are earning new sources of revenue by sending food trucks on the road or distinguishing their brands with novel cuisines, farm-to-table fare and craft cocktails. Many eateries are tech-savvy, offering diners a wide variety of consumer-facing technologies to order steak and fries online for home or office delivery, or to pick their own choices on a tablet located on the table at the establishment.
These days, bartenders are chemists, chefs are celebrities, restaurant interiors are featured in design magazines and feasting is a sociocultural event.
Dining is as much about the experience as it is about the food. Average food is dead. Fine dining experiences and quality casual dining are excelling. It’s not so much about price as it is quality and food experiences.
More, More, More
These innovative and evolving iterations of what it means to be a restaurant in the 21st century have coalesced to create boom times for the industry, with revenues on track to rise 3.8% in 2015 to $709.2 billion, according to the National Restaurant Association. The industry is also a major job creator, currently employing 14 million Americans—a figure expected to rise to 15.7 million by 2025. Every U.S. state will see their restaurant industry workforce expand over the next decade.
What’s driving the industry’s spectacular growth?
According to the National Restaurant Association, “consumers continue to have substantial pent-up demand for restaurant services.” A recent survey from the association indicates that 38% of consumers would like to eat more often at restaurants, and 41% would like to purchase more takeout or delivery. Few people seem interested anymore in a home-cooked meal.
From an independent insurance agency standpoint, these factors make restaurants ripe for specialization. Agents are able to provide a broad set of insurance products and address the complex exposures of the industry, this makes them excellent at providing value.
With workers compensation prices rising, that’s a sore spot for many restaurant owners. Independent insurance agents can cut down on this pain point.
These businesses need someone who really understands their risks, particularly as their exposures become more complex.
An independent insurance agent who really knows the restaurant business and its myriad exposures has an ability to identify the right carriers to piece together an optimum insurance program. It’s all about having a relationship with the customer, which leads back to specialization. We will always value an agent that understands the nuances that go into a particular class of business.
For more details on unique restaurant coverages, contact Lallis & Higgins Insurance.