According to Nation’s Restaurant News, “Rising costs for food and fuel have dominated headlines and weighed heavily on the minds of restaurant operators. However, despite all the discouraging news, the state of the industry isn’t as grim as it sounds, according to Brad Ludington, a restaurant securities analyst at KeyBanc Capital Markets. In a research note this week, he outlined five reasons why things are looking up for restaurant operators this year.”
“1. Consumers are coming back to restaurants. Ludington dismissed the notion that consumers have settle into a permanent ‘new normal’ of dining out less. As the economy improves, so will restaurant traffic, he said. ‘We believe meals at restaurants have both entertainment and convenience factors that are valuable to consumers and will become more prevalent as incomes rise,’ Ludington said.
“2. Social media marketing is working. Ludington noted that restaurant chains are successfully using social media to reach customers and build loyalty without resorting to deep discounts, which were ran rampant during the recession.”