Restaurants Enjoy Start of Post-Reopening Boom

The Main Course always has a pulse on what’s next for the
restaurant industry. For a look at the restaurant industry
outlook for 2021, host Barbara Castiglia spoke with Cristin
O’Hara, Managing Director, Restaurant Group, at Bank of America.


O’Hara started with some good news. “There is enthusiasm and
positivity that the industry is turning the corner. The second
half of the year could see strong GDP growth, as people become
more comfortable with returning to restaurants and the takeout
business continues to soar.”


Some of that bounce back is already evident. “In some cases,
same-store sales and margins are very good. Events are happening
this year that didn’t last year, which makes people want to
celebrate and order food,” O’Hara said.


Looking at trends and what may stay around post-pandemic, O’Hara
spoke about technology's role in delivering convenience to the
diner. It also provides intelligence to restaurants, which allows
them to be smarter in decision-making.


While QSRs have grown, primarily due to drive-thrus, and fast
casuals are coming back, O’Hara believes fine dining will be the
last to emerge from the pandemic. “They depend on business travel
and entertainment, which isn’t coming back yet,” she added.


Overall, she thinks the demand for dining out will grow as it
becomes safer. The key for all restaurants will be getting
throughput to align with demand, managing labor needs, and being
prepared for changes in pricing in costs of goods. “Digitization
has a lot to do with the management of these categories.”