CHICAGO -- Pro-union agitators tried to disrupt the National Restaurant Association’s annual industry convention in Chicago, but they needed to do more than yell and wave a few signs if they wanted to badger attendees out of a good mood. Those who sat through certain of the conference’s 100-plus education sessions had reason to exit with smiles and considerable optimism.
Among the revelations that may have buoyed their expectations for the near future:
- Gas savings = more restaurant sales. Some experts had disputed that lower costs at the gas pump are translating into increased discretionary spending. They contend that the found money is used for essentials, like paying down credit-card debt, not for splurges like dining out. Not so, declared Hudson Riehle, senior economist for the NRA’s Research & Knowledge Group. “We have confirmed that one out of two car owners is likely to spend more at restaurants because of the lower gas prices,” he said.
- The summer will likely bring an upswing in domestic travel. Because gas prices have stayed relatively low, the number of miles Americans are traveling by car is growing again for the first time since 2008, according to Riehle. He predicted strong tourist traffic this summer, which translates directly into increased restaurant sales. Out-of-towners are the source of one of every four dollars that go into a restaurant’s till.
The chances of increased domestic travel by plane also looks good, a slice of good news for cities and resort destination areas, said Sarah Quinlan, senior vice president and head of market insights for MasterCard. She noted that airplane reservations are soaring, yet only 27% of Americans have passports. “The rest can’t get off the island,” she said.
Click on RestaurantBusinessOnline.com for Reasons No. 3, 4 and 5.
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