Philadelphia restaurants on track for their biggest year ever
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Illustration: Annelise Capossela/Axios
2024 is expected to be the U.S. restaurant industry's biggest year ever in sales — and the trendline is looking promising in Philly too.
Why it matters: The COVID-19 pandemic devastated the restaurant industry, but sales are now far higher than before it started — and climbing.
The intrigue: That's despite big financial pressures on restaurateurs, such as tech investments and the cost of labor and food.
The big picture: The National Restaurant Association estimates the U.S. restaurant industry will rake in $1.1 trillion by the end of December.
- That's up from $1.049 trillion last year and $864 billion in 2019, the year before the pandemic.
Meanwhile, more than a million jobs went unfilled in restaurants and accommodations at the end of March, per Bureau of Labor Statistics data.
- Competition for restaurant staff is "not as intense as it was before" — during the pandemic and coming out of it — but restaurant owners "definitely feel that they are in competition for the best workers," Michelle Korsmo, CEO of the National Restaurant Association, tells Axios.
Zoom in: Local restaurant insiders tell Axios they expect Philadelphia's food scene to surpass sales records this year — and that city leaders are making it easier to succeed.
- Mayor Cherelle Parker has pledged to make Philly more welcoming to businesses, says Ben Fileccia, a VP at Pennsylvania Restaurant & Lodging Association.
- And he says city lawmakers are doing their best to ease streetery regulations that were a boon for restaurants during the pandemic.
By the numbers: Pennsylvania has over 26,000 restaurants, accounting for about $31 billion in annual sales, up from $27.9 billion in 2022.
- The restaurant industry is the state's fourth-largest private employer, comprising about 9% of total jobs.
- The state expects to add 44,100 restaurant workers by 2032, an 8.5% increase that'll bring the industry workforce to more than 562,000 people.
What we're watching: Some restaurants are looking to technology, social media, and increased catering and delivery options to improve business.
- But locally, Fileccia says restaurants are focused on tried-and-true tactics, such as early dinner specials and zero-proof cocktails as fewer people drink alcohol.
- Peak dinner hours have shifted from 7-11pm to 5-8pm, Fileccia says.
What they're saying: Philly's restaurant scene survived many of Fileccia's early "doomsday predictions" through sheer "resilience and creativity."
- "They found a way not only to get through one of the worst periods for restaurants. They came out on the other side stronger than ever."