Business Insights: Get a Liquor License in Chicago
Use Restaraunts as an Economic Indicator – Pivot with Consumer Demand
Businesses need an advantage as they swim in the economic sea. Sometimes the tides turn and business owners can make a profit, even in a declining economy. Other times, business stakeholders must swim upstream to catch more and bigger fish.
Whatever the case may be, raw data doesn’t lie (unless the collection methods are insufficient). The economy has not recovered for many Americans since the 2008-2009 Great Recession. And, if you have a business in the City of Chicago, you are on the front line for changing consumer spending.
How do you survive the post-recession economy?
1- Know why customers spend money:
Consumer spend money on needs and wants. For instance, in the infographic above, we see that customers spend money at the grocery store (even in a decline dining-out market), and on “sin” (alcohol and tobacco). After a hard-day’s work, many workers still want to eat and relax (alcohol and tobacco). Businesses following the opportunity, should follow the disposable income.
2- Follow the numbers:
In the dashboard above, you can see that, while overall consumer spending on restaurants has gone down, businesses have invested in obtaining liquor licenses to capture the alcohol-consumption market. This can be an edge for any business trying to attract the after-work, happy-hour crowd. (Click on “Consumption of Liquor on Premises” above.)
3- Protect your intellectual property:
Check out at the resources below. If you have been rolling with the economic punches (especially as a restauranteur), you should protect your intellectual property. You can work with Cultural Skies founder, Keith Coleman and The Celeste Firm to make sure your business has end-to-end IP solutions and workflows. These will give you an edge, to ride the wave to profitability- regardless of the economy.
“When Instagram and Yelp are crowded with 300 pictures of your latest dish or cutting-edge bar decor, imitation isn’t just a form of flattery; it’s intellectual theft that is entirely legal and impossible to prevent.”https://www.washingtonpost.com/business/2019/07/08/weve-just-lived-through-greatest-period-restaurant-growth-us-history-heres-why-its-ending/
“We warn investors that restaurant-industry sales tend to be the ‘Canary that Lays the Recessionary Egg,’”…
“No matter how the economy is doing, people love dining out. Americans spent $605 billion at the best chain restaurantsand other establishments from 2017 to 2018, according to the Los Angeles Times. However, not all restaurants are created equally.”
“Restaurant jobs are on fire in 2017, growing faster than health care, construction, or manufacturing. The Bureau of Labor Statistics calls this subsector “food services and drinking places,” and the jobs are mostly at sit-down restaurants, which make up 50 percent of the category. Fast-food joints are the next-largest employer in the category, with 37 percent. Bars—wonderful, plentiful, but leanly staffed—account for just 3 percent. So, I’m just going to keep saying “restaurants” for short.”
“Too many restaurants are chasing too few consumer dollars, he says. Part of this is because of demographic changes. People age 35 to 54 go out to eat most often. Younger than that and they may not have enough earning power or may be saddled with student loans; older than that and careers are winding down and there may be less travel or disposable income.
“The gestation period to develop new ideas in Portland in the middle of the last decade was years,” Alexander says. “Now if you don’t have your act together in three months, someone is going to take your idea and own it. It doesn’t matter where they live, if they have the resources and skill to execute better than you can, anyone can plagiarize you.
When Instagram and Yelp are crowded with 300 pictures of your latest dish or cutting-edge bar decor, imitation isn’t just a form of flattery; it’s intellectual theft that is entirely legal and impossible to prevent.”
“Like its fast food rivals, Subway is aggressively redesigning its stores to adapt to the future. Two years ago, it announced plans to roll out self-order kiosks with mobile payment options, more comfortable seats and USB charging ports. Those store changes also placed a renewed emphasis on fresh produce…
As consumer tastes change, fast-food and quick-serve restaurants have struggled to keep up. Starbucks (SBUX) and Burger King have redesigned and added drive-thrus. McDonald’s bought a tech startup that will help improve mobile ordering. Chipotle (CMG) is redesigning stores and its menus. Panera completely revised its breakfast options. And the whole industry has begun offering healthier food options and digital kiosks for faster orders.”
In total, the number of U.S. restaurants declined 2% for the period to 647,288 units, the report notes. Full-service restaurant units–a segment that includes casual dining, family dining, and fine dining–also fell 2%, to 294,167.