As economic challenges continue indefinitely into the future, small restaurants are adjusting their revenue expectations.
By the Numbers
Research from PYMNTS’ new study, “Main Street Health Survey Q4 2022: SMBs Brace For A Recession,” which draws from responses from 500 U.S.-based businesses in October and November, finds that hospitality firms’ outlook has taken a turn for the worse. As of the survey, 53% of food, entertainment and accommodations businesses reported expecting higher revenues in 2022 than in 2021, down from 63% in the first quarter of the year.
Get the study: Main Street Health Survey Q4 2022: SMBs Brace For A Recession
The Data in Action
Technology providers, noting these challenges, are seizing on the opportunity to offer automate solutions, helping restaurants to cut costs and boost margins. For instance, on Wednesday (Dec. 7), restaurant management platform MarginEdge announced that it has raised $45 million in its Series C funding round to expand its presence and improve its technology.
“Our North Star has always been empowering operators with technology and real-time data to make more informed decisions and getting them back to doing the part of the job they love,” co-founder and CEO Bo Davis said in a statement. “In the current environment, and with everything the restaurant community has had to navigate these last few years, this mission has never been more important.”
Additionally, Jordan Boesch, CEO of restaurant team management platform 7shifts, stated in an interview with PYMNTS’ Karen Webster as part of our SMB TV series, which is available Thursdays at 10 p.m. and is presented in partnership with PayPal, that staffing needs to be the top priority for small restaurants looking to turn it around.
“Focus on fixing your foundation, and then continue to build the next story on your house,” Boesch said.
