Is the Restaurant Industry in Recession?

The video discusses the challenges faced by the restaurant industry, including the cost differences between eating at home and dining out, and the impact of food deflation and rising labor costs. It explores the potential economic implications, such as a recession, and demographic factors like the retirement of baby boomers affecting casual dining and department store sales. The video also analyzes wage increases in the leisure and hospitality industry and how food deflation is currently aiding restaurants in managing margin pressures.

What is one of the main reasons for the pressure on restaurants to increase their prices?

• Increase in food packaging costs

• Reduction in consumer demand

• Increase in labor costs

• Decrease in food deflation

How are baby boomers affecting the sales of casual dining restaurants and department stores?

• They are spending more as they retire

• They are shifting to online shopping

• They are reducing spending due to fixed incomes

• They are investing more in luxury goods

What is the potential economic impact of the challenges faced by the restaurant industry?

• A rise in consumer spending

• A potential recession

• An increase in employment rates

• A boost in economic growth

What is the current trend in wage increases in the leisure and hospitality industry?

• Far outstripping the national average

• Below the national average

• Decreasing compared to last year

• Equal to the national average

How is food deflation currently benefiting the restaurant industry?

• By offsetting some of the margin pressures

• By lowering rent expenses

• By reducing labor costs

• By increasing consumer demand