There has been a considerable drop in the sales of the Unites States restaurant industry, thanks to macroeconomic issues, despite the positive sales momentum that had hit the market in early 2012. There are various factors that have been the main cause of these effects. They include uncertainty, based on the upcoming elections, expensive costs of food in the U.S, a strong dollar, sluggish labor market, and finally surplus in the number of restaurants in the country.
However, with new technological advancements and practices, such as the use of Electronic Menus, competition will be evident in the near future. This means that, despite all these hurdles, the restaurant industry will sustain its desired pace of recovery throughout the year, albeit at a predicted slower clip (Pantice, 2012). The National Restaurant Association projects that the restaurant industry will expand rapidly in 2012 despite the eminent sluggish recovery in the U.S. economy. The focus is based on cost containment, eminent extra value for price, and also international expansion, are the most prominent on restaurateurs’ wish-list aiming at tiding them over the prevailing macro difficulties.
The industry association, in the brink of noticing “the substantial eminent pent-up demand” prevailing in the market, has estimatedtotal restaurant sales to increase by 4.5% annually to a record $632 billion this year. If realized, this will prove as marking the second straight ever year of vast industry sales surpassing the $600 billion mark (Pantice, 2012).The restaurant industry commands a large portion of the U.S. market.
Statistics prove that there is a favorable environment in this sector. A recent survey, conducted in 2012, by the National Restaurant Association has revealed that the existing Restaurant Performance Index (RPI), which measures the present condition in the market and outlook on the general U.S. restaurant industry, lay at 100.6 in August.
This was up to 0.4% sequentially in consecutive tenth month in which this RPI has scored above the set 100. The RPI running-rate in the reviewed last ten months has connoted improvement in all comparable store sales in the industry, and also customer traffic (Brunel, 2012). The major players in this industry include McDonald’s Corporation, Yum Brands Inc., and also Brinker International Inc. Their yearly hikes in existing dividend calculated on a regular basis for these industry leaders always underscore their eminent concerted efforts.
This is always with a major aim to return their shareholder and also franchisee value irrespective and not considering the exissting economic peaks and valleys (Junior, 2012). They are always out to make sure that they continue commanding the market. Their strategies and plans always lock out other participants and their large customer base is an advantage. They, however, do rely on the elite in the society and those considered being well off financially. A La Minute’s target is to serve those in the downtown comprising of busy clients who have little time to waste on ordering food. With the market research report released by NPD, there is a hope of the market opportunities increasing by 8% in the next decade (Brunel, 2012).
A La Minute’s target market and determination have a base on the Electronic menu. We will reduce the hassle that clients have always found difficulty in dealing with the waiters who are never willing to serve. Most of these waiters do not love their work or have a negative attitude towards some people. The electronic menu will be a remedy to this problem as there are no emotions attached to it. It also allows the customer all the privacy he needs while ordering for a meal. The barriers in communication with waiters will not exist.
The information on the electronic menu will be easy to understand, and service will be of a high level. We hope that this idea will sparkle a new generation of service in the restaurant business.