In a recent episode of America’s Commercial Real Estate Show, the show host engaged in an in-depth discussion with Darren Tristano, CEO of Foodservice Results, about the state of the restaurant industry in the context of commercial real estate. The conversation touched on multiple topics, including the performance of restaurants, different types of restaurants, the impact of immigration policies, and the push towards healthier food options.
The show’s host began the conversation by inquiring about the performance of restaurants, especially given the current economic climate. Tristano indicated that despite some struggles, many restaurants are managing to stay afloat, primarily due to consumers spending more when they do eat out. This, coupled with inflation, has resulted in a modest increase in restaurant revenues.
The host also sought to understand the types of restaurants that are faring better than others. Tristano noted that fast-casual restaurants like Panera Bread and Chipotle are leading the way due to their better-quality offerings. However, he mentioned that full-service side and casual dining brands like Applebee’s, Chili’s, and Ruby Tuesday are struggling to attract customers.
The conversation took an interesting turn when the topic of immigration policies came up. Tristano explained how tighter immigration policies could impact the restaurant industry’s labor force, with the potential of facing a shortage of workers willing to work for the wages that restaurants need to pay to remain profitable.
The host also brought up the issue of healthier food options and the current push for less unhealthy ingredients. Tristano conceded that while everyone wants healthier options, they often come at a higher cost, which could affect the already slim profit margins of restaurants.
In terms of real estate, Tristano mentioned that rent-to-revenue ratios are staying about even, although rents continue to rise. He advised restaurant operators to focus more on marketing their restaurants and driving revenue, rather than just trying to cut costs.
Although the conversation did not specifically mention Miami, the insights provided by Tristano are applicable to the restaurant industry as a whole, including in cities like Miami. As the restaurant industry continues to evolve, these factors will undoubtedly play a significant role in shaping its future, especially in the context of commercial real estate.
In conclusion, this episode of America’s Commercial Real Estate Show offered valuable insights into the restaurant industry’s current state and its potential future. It highlighted the importance of considering various factors, such as immigration policies, the push for healthier options, and the role of marketing in driving revenue, in understanding the industry’s trajectory.
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