bake - January/February 2023 - 27

The resources
When it comes to bringing your idea to life, do you
have all of the necessary resources available? Among
other things, this includes knowledge, skillset, finances
and labor. Do you know how to run a business? Do you
know how to create the product or source affordable
supplies? Do you have the money to keep the business
alive before it turns a profit? " Statistics show that 29%
of new businesses reportedly failed because of a lack of
finances. " These are all things to consider when starting
a business.
Uncontrollable pressures
2022 was a year of uncontrollable pressures for restaurant
operators: rising inflation forced supply costs up,
made borrowing capital more difficult, and forced them
to raise menu prices. According to the latest National
Restaurant Association Business Conditions survey, the
trifecta of higher food costs, labor costs and energy/
utility costs are now a significant challenge for a majority
of operations.
" The restaurant industry is ending the year in an environment
that's the most typical since 2019, " said Hudson
Riehle, senior vice president of Research for the National
Restaurant Association. " Moderate but positive employment
growth across the economy and elevated consumer
spending in restaurants will allow the restaurant industry
to kick off 2023 on a more optimistic note than the last
few years, but operators remain braced for potential
challenges in the new year. "
Food and labor costs are the two most significant line
items for a restaurant, each accounting for approximately
33 cents of every dollar in sales. Other expenses - such
as utilities, occupancy, supplies, general/administrative
and repairs/maintenance - combine to represent about
29% of sales. A strong majority of operators say food,
labor and energy/utility costs are currently significant
challenges for their restaurant.
* 92% of operators say food costs are a significant
challenge
* 89% of operators say labor costs are a significant
challenge
In November, the Producer Price Index for All Foods
rose for the 18th time in the past 23 months, with 15
of those increases topping 1%. While menu prices also
increased 8.5% between November 2021 and November
2022, these increases are lower than grocery store prices
which increased 12% over the same period.
bakemag.com | JAN - FEB 2023 > 27
" In this kind of economic environment, typical operators
don't have much margin for error. With major input
costs escalating, they can make changes to align with
local consumer demand while realigning operations for
longer term growth, " said Riehle.
Restaurants run on notoriously thin margins, so 50%
of operators expect to be less profitable in 2023, while
another 34% expect their profitability to remain the
same as it was in 2022.
Operators continue to have to make difficult choices
to manage their profitability - everything from reducing
hours to postponing expansions and even eliminating
third-party delivery.
Harry Peemoeler,
senior instructor of
Bread and Bread
Studies at Johnson
& Wales, talks about
grain industry trends
during IBIE.
JOHN UNREIN
http://www.bakemag.com

bake - January/February 2023

Table of Contents for the Digital Edition of bake - January/February 2023

bake - January/February 2023 - Intro
bake - January/February 2023 - 1
bake - January/February 2023 - 2
bake - January/February 2023 - 3
bake - January/February 2023 - 4
bake - January/February 2023 - 5
bake - January/February 2023 - 6
bake - January/February 2023 - 7
bake - January/February 2023 - 8
bake - January/February 2023 - 9
bake - January/February 2023 - 10
bake - January/February 2023 - 11
bake - January/February 2023 - 12
bake - January/February 2023 - 13
bake - January/February 2023 - 14
bake - January/February 2023 - 15
bake - January/February 2023 - 16
bake - January/February 2023 - 17
bake - January/February 2023 - 18
bake - January/February 2023 - 19
bake - January/February 2023 - 20
bake - January/February 2023 - 21
bake - January/February 2023 - 22
bake - January/February 2023 - 23
bake - January/February 2023 - 24
bake - January/February 2023 - 25
bake - January/February 2023 - 26
bake - January/February 2023 - 27
bake - January/February 2023 - 28
bake - January/February 2023 - 29
bake - January/February 2023 - 30
bake - January/February 2023 - 31
bake - January/February 2023 - 32
bake - January/February 2023 - 33
bake - January/February 2023 - 34
bake - January/February 2023 - 35
bake - January/February 2023 - 36
bake - January/February 2023 - 37
bake - January/February 2023 - 38
bake - January/February 2023 - 39
bake - January/February 2023 - 40
bake - January/February 2023 - 41
bake - January/February 2023 - 42
bake - January/February 2023 - 43
bake - January/February 2023 - 44
bake - January/February 2023 - 45
bake - January/February 2023 - 46
bake - January/February 2023 - 47
bake - January/February 2023 - 48
bake - January/February 2023 - 49
bake - January/February 2023 - 50
bake - January/February 2023 - 51
bake - January/February 2023 - 52
bake - January/February 2023 - 53
bake - January/February 2023 - 54
bake - January/February 2023 - 55
bake - January/February 2023 - 56
bake - January/February 2023 - 57
bake - January/February 2023 - 58
bake - January/February 2023 - 59
bake - January/February 2023 - 60
https://digital.bakemag.com/sosland/bake/bake-january-february-2023
https://digital.bakemag.com/sosland/bake/bake-november-december-2022
https://digital.bakemag.com/sosland/bake/bake-special-report-november-2022
https://digital.bakemag.com/sosland/bake/bake-september-october-2022
https://digital.bakemag.com/sosland/bake/bake-special-report-july-2022
https://digital.bakemag.com/sosland/bake/bake-july-aug-2022
https://digital.bakemag.com/sosland/bake/bake-redbook-2022
https://digital.bakemag.com/sosland/bake/bake-special-report-may-2022
https://digital.bakemag.com/sosland/bake/bake-may-june-2022
https://digital.bakemag.com/sosland/bake/bake-march-april-2022
https://digital.bakemag.com/sosland/bake/bake-january-february-2022
https://digital.bakemag.com/sosland/bake/bake-special-report-january-2022
https://digital.bakemag.com/sosland/bake/bake-november-december-2021
https://digital.bakemag.com/sosland/bake/bake-special-report-november-2021
https://digital.bakemag.com/sosland/bake/bake-september-october-2021
https://digital.bakemag.com/sosland/bake/bake-july-august-2021
https://digital.bakemag.com/sosland/bake/bake-redbook-2021
https://digital.bakemag.com/sosland/bake/bake-july-2021
https://digital.bakemag.com/sosland/bake/bake-may-june-2021
https://digital.bakemag.com/sosland/bake/bake-special-report-may-june-2021
https://digital.bakemag.com/sosland/bake/bake-march-april-2021
https://digital.bakemag.com/sosland/bake/bake-january-february-2021
https://digital.bakemag.com/sosland/bake/2021_01_01
https://digital.bakemag.com/sosland/bake/2020_12_01
https://digital.bakemag.com/sosland/bake/2020_11_01
https://digital.bakemag.com/sosland/bake/2020_09_01
https://digital.bakemag.com/sosland/bake/2020_08_01
https://digital.bakemag.com/sosland/bake/2020_07_02
https://digital.bakemag.com/sosland/bake/2020_07_01
https://digital.bakemag.com/sosland/bake/2020_06_01
https://digital.bakemag.com/sosland/bake/2020_05_01
https://digital.bakemag.com/sosland/bake/2020_04_01
https://digital.bakemag.com/sosland/bake/2020_02_01
https://digital.bakemag.com/sosland/bake/2020_01_01
https://digital.bakemag.com/sosland/bake/2019_12_01
https://digital.bakemag.com/sosland/bake/2019_11_01
https://digital.bakemag.com/sosland/bake/2019_10_01
https://digital.bakemag.com/sosland/bake/2019_09_01
https://digital.bakemag.com/sosland/bake/2019_08_01
https://digital.bakemag.com/sosland/bake/2019_07_01
https://digital.bakemag.com/sosland/bake/2019_06_01
https://digital.bakemag.com/sosland/bake/2019_05_01
https://digital.bakemag.com/sosland/bake/2019_04_01
http://digital.bakemag.com/sosland/bake/2018_07_02
https://digital.bakemag.com/sosland/bake/2019_03_01
https://digital.bakemag.com/sosland/bake/2019_02_01
https://digital.bakemag.com/sosland/bake/2019_01_01
http://digital.bakemag.com/sosland/bake/2018_12_01
http://digital.bakemag.com/sosland/bake/2018_11_01
http://digital.bakemag.com/sosland/bake/2018_10_01
http://digital.bakemag.com/sosland/bake/2018_09_01
http://digital.bakemag.com/sosland/bake/2018_08_01
http://digital.bakemag.com/sosland/bake/2018_07_01
http://digital.bakemag.com/sosland/bake/2018_06_01
http://digital.bakemag.com/sosland/bake/2018_05_01
http://digital.bakemag.com/sosland/bake/2018_04_01
http://digital.bakemag.com/sosland/bake/2018_03_01
http://digital.bakemag.com/sosland/bake/2018_02_01
http://digital.bakemag.com/sosland/bake/2018_01_01
http://digital.bakemag.com/sosland/bake/2017_12_01
http://digital.bakemag.com/sosland/bake/2017_11_01
http://digital.bakemag.com/sosland/bake/2017_10_01
http://digital.bakemag.com/sosland/bake/2017_09_01
http://digital.bakemag.com/sosland/bake/2017_08_01
http://digital.bakemag.com/sosland/bake/2017_07_01
http://digital.bakemag.com/sosland/bake/2017_06_01
http://digital.bakemag.com/sosland/bake/2017_05_01
http://digital.bakemag.com/sosland/bake/2017_04_01
http://digital.bakemag.com/sosland/bake/2017_03_01
http://digital.bakemag.com/sosland/bake/2017_02_01
http://digital.bakemag.com/sosland/bake/2017_01_01
http://digital.bakemag.com/sosland/bake/2016_12_01
http://digital.bakemag.com/sosland/bake/2016_11_01
http://digital.bakemag.com/sosland/bake/2016_10_01
http://digital.bakemag.com/sosland/bake/2016_09_01
http://digital.bakemag.com/sosland/bake/2016_08_01
http://digital.bakemag.com/sosland/bake/2016_07_01
http://digital.bakemag.com/sosland/bake/2016_06_01
http://digital.bakemag.com/sosland/bake/2016_05_01
http://digital.bakemag.com/sosland/bake/2016_04_01
http://digital.bakemag.com/sosland/bake/2016_03_01
http://digital.bakemag.com/sosland/bake/2016_02_01
http://digital.bakemag.com/sosland/bake/2016_01_01
http://digital.bakemag.com/sosland/bake/2015_12_01
http://digital.bakemag.com/sosland/bake/2015_10_01
http://digital.bakemag.com/sosland/bake/2015_09_01
http://digital.bakemag.com/sosland/bake/2015_08_01
http://digital.bakemag.com/sosland/bake/2015_07_01
http://digital.bakemag.com/sosland/bake/2015_06_01
http://digital.bakemag.com/sosland/bake/2015_05_01
https://www.nxtbook.com/sosland/bake/2015_04_01
http://digital.bakemag.com/sosland/bake/2015_03_01
https://www.nxtbook.com/sosland/bake/2015_02_01
https://www.nxtbook.com/sosland/bake/2015_01_01
https://www.nxtbook.com/sosland/bake/2014_12_01
https://www.nxtbook.com/sosland/bake/2014_10_01
https://www.nxtbook.com/sosland/bake/2014_09_01
https://www.nxtbook.com/sosland/bake/2014_08_01
https://www.nxtbook.com/sosland/bake/2014_07_01
https://www.nxtbook.com/sosland/bake/2014_06_01
https://www.nxtbook.com/sosland/bake/2014_05_01
https://www.nxtbook.com/sosland/bake/2014_04_01
https://www.nxtbook.com/sosland/bake/2014_03_01
https://www.nxtbook.com/sosland/bake/2014_02_01
https://www.nxtbook.com/sosland/bake/2014_01_01
https://www.nxtbook.com/sosland/bake/2013_11_01
https://www.nxtbook.com/sosland/bake/2013_11_02
https://www.nxtbook.com/sosland/bake/2013_10_01
https://www.nxtbook.com/sosland/bake/2013_09_01
https://www.nxtbook.com/sosland/bake/2013_08_01
https://www.nxtbook.com/sosland/bake/2013_07_01
http://digital.bakemag.com/sosland/bake/2013_06_01
https://www.nxtbook.com/sosland/bake/2013_05_01
https://www.nxtbook.com/sosland/bake/2013_04_01
https://www.nxtbook.com/sosland/bake/2013_03_01
https://www.nxtbook.com/sosland/bake/2013_02_01
https://www.nxtbook.com/sosland/bake/2013_01_01
https://www.nxtbook.com/sosland/bake/2012_11_01
https://www.nxtbook.com/sosland/bake/2012_10_01
https://www.nxtbook.com/sosland/bake/2012_09_01
https://www.nxtbook.com/sosland/bake/2012_08_01
https://www.nxtbook.com/sosland/bake/2012_07_01
https://www.nxtbook.com/sosland/bake/2012_06_01
https://www.nxtbook.com/sosland/bake/2012_05_01
https://www.nxtbook.com/sosland/bake/2012_04_01
https://www.nxtbook.com/sosland/bake/2012_03_01
https://www.nxtbook.com/sosland/bake/2012_02_01
https://www.nxtbook.com/sosland/bake/2012_01_01
https://www.nxtbookmedia.com