The Future of Eating Out: How Niche and Quick Serve Restaurants are Shaping the Industry in 2023
Among the interesting highlights of the most recent BizBuySell Quarterly Insight Report, is the growth happening in the restaurant sector. The industry is showing signs of expansion after the challenges encountered during the pandemic. After two years of struggling to find footing, dining out is popular again. Restaurant acquisitions jumped 20% in 2022, following a modestly successful 6.5% gain in 2021. Things are definitely looking up for the industry. Leading the trends for 2023? To counter the rise in food, supply, and labor costs, turnkey establishments like quick serve restaurants and niche categories are most popular.
Niche Restaurant Trends for 2023
While the outlook for the restaurant industry is gaining momentum, there are still economic conditions to contend with. Business buyers and brokers report that inflation and supply chain issues continue to be top of mind for the year ahead. With inflation driving up menu costs and consumers keeping a watchful eye on discretionary spending, restaurants with a prudent menu pricing strategy are proving successful investments. Look for QSRs and niche restaurants serving up boba tea, pizza, and sandwiches to pop up on Main Street in 2023.
Quick Serve Restaurants, Food Trucks, and Ghost Kitchens Lead the Charge
Restauranteurs looking to start businesses are leaning into operations that cater to take out and delivery options. Business brokers and owners shared with BizBuySell that ghost kitchens, food trucks, and QSRs are attractive options for entrepreneurs. While pandemic disruptions to the industry continue to fade, restauranteurs report that hiring is still a challenge. While these hiring issues persist, operating businesses less reliant on a large staff are attractive. The demand for takeout and delivery shows no signs of fatigue among consumers, making these popular restaurant acquisitions.
Restaurant Categories Gaining Momentum in 2023
As inflation concerns continue to be top of mind for restaurant owners and customers alike, niche establishments are also becoming more popular. While consumers have pent up demand for dining out, they’re also keeping an eye on discretionary spending. Establishments that offer quality, unique offerings at an affordable price are trending for 2023. Think boba tea, coffee shops, pizza, and sandwich shops. Restaurants that invest in technology with digital ordering systems and mobile apps can streamline the operation and reduce overhead costs, making these niche trends attractive options for buyers.
Strong Financials Boost Restaurant Sales
For owners looking to sell a restaurant, this is an exciting time. Restaurants showed strong financials and sold at higher prices in 2023. Sellers should keep in mind that brokers and owners continue to share the challenges ahead with the effects of rising inflation over the last year and hiring quality talent remains elusive. Buyers are looking for opportunities to minimize these current industry issues, resulting in niche trends to help owners maintain profitability and meet the needs of diners.