FSR October 2022

YourTake BY LIZ GEAVARAS

CourtingtheBusinessDiner Counterintuitive as it may be, the remote workforce represents an untapped opportunity for restaurants.

THE OLD SAYING, “the only thing constant is change,” has never been truer. And so, we must adapt, and that requires a shift in mindset from headwinds to tailwinds. Of course, we all need to keep a pulse on what’s immediately impacting us and react appropriately, but it’s also vital to look ahead. Adapting to the current conditions and to aspects of what really may be a new normal is vital. As consumer demand slows largely due to inflationary pressures, business diners have become evenmore crucial—they’ve also become a tailwind pushing opportunities and revenue to new heights. Stats from event and hospitality intelligence firm Know land’s Q2 Meeting Recovery Forecast suggest off-site meetings will reach 72 percent of 2019 levels by year-end. Fur thermore, Knowland’s findings project these meetings will eclipse pre-Covid numbers, clocking in at 106 percent of its 2019 baseline by the end of 2023—a figure that’s expected to outpace the rate of workers returning to the office. Per Dinova’s proprietary Business Dining Index, small and medium-sized restaurants have exceeded their pre pandemic performance since last year. Dinova’s latest report puts that sector’s business dining spend at 111 percent of 2019 levels as of Q3 2022. The same report has large enterprises at 68 per cent of the same quarter in 2019—the

EVEN IF WORKERS AREN’T RETURNING TO THEIR OFFICES, RESTAURANTS CAN STILL ATTRACT BUSINESS DINERS FOR MEETINGS, EVENTS, AND OTHER OCCASIONS. “As consumer demand slows largely due to inflationary pressures, business diners have become even

average compared to pre-Covid levels. (It should be noted that there are some wide-ranging averages. For example, Philadelphia is at 38 percent occupancy, and Austin, Texas, is at 57 percent.) Come what may, business goes on; deals need to be closed, employees need to bond with one another, and overall company culture depends on special experiences and events. As we move into the private dining season, escalating the value proposition, creating demand, and targeting the decision-makers for off-site business events are all essential. This means the pressure meeting planners are feeling to locate the right venues will only escalate. Premium con cierge services will be paramount to take advantage of the evolving needs in the restaurant world and outsourcing these

highest they’ve reached since the start of Covid. Many organizations are track ing variables like this to understand the impact of employees not returning to the office. Research from real estate technol ogy solutions provider Kastle Systems shows that buildings across 10 major cit ies show only a 43.2 percent occupancy more crucial—they’ve alsobecome a tailwind pushingopportunities and revenue to newheights.”

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