The pandemic has changed the restaurant industry, and the likelihood of it returning to its pre-pandemic level is highly unlikely, according to the National Restaurant Association.

“Restaurants and their patrons have found themselves in a ‘new normal,’ ” Hudson Riehle, senior vice president of the Research and Knowledge Group at the National Restaurant Association, said in a statement.

“Given emergent technology, changing consumer behavior and dining preferences, and the extraordinary challenges of the last two years, the industry is unlikely to ever completely return to its pre-pandemic state,” he added.

In the 2022 State of the Restaurant Industry report from the association released on Tuesday, more than half of restaurant operators said it would be a year or more before business conditions returned to normal as the pandemic continues to hamper their operations.

Restaurant operators continue to be pinched by food, labor and occupancy costs, which are expected to remain high and affect profit margins well into 2022, the report indicated.

Compounding these issues are supply shortages and delays as 96% of restaurant owners say they struggled with both in 2021 and believe the issues will likely continue in 2022, according to the report.

Due to the pandemic, 51% of adults also aren’t eating at restaurants as often as they would like, up 6% from before the pandemic began, which is cutting into profits for many owners.

The report did maintain that the food service industry is forecast to have $898 billion in sales in 2022 and grow by 400,000 jobs for the year. But with a rise in jobs, many restaurants are finding it hard to hire workers and remain severely understaffed as a result.

Seven in 10 operators say they do not have enough employees to support customer demand, while most owners say they expect the labor crunch to continue through the next year.

Only Idaho, Montana, North Dakota, Utah and Arizona have the same number of restaurant workers as they did before the pandemic started, CNN reported.

“The restaurant and food service industry has adapted and is carrying on with absolute resilience, so we’re optimistic about the path toward recovery in the coming year,” said Marvin Irby, interim president and CEO of the National Restaurant Association.

The US economy added 943,000 jobs in July after a similar gain in June, with the biggest gain in bars and restaurants
The U.S. economy added 943,000 jobs in July after a similar gain in June, with the biggest gain in bars and restaurants. AFP / Frederic J. BROWN
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