Six months following the events of 11 September, the National Restaurant Association (NRA) has reported that the restaurant industry “remains resilient as it continues to recover”.
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Although the restaurant industry overall was impacted after the terrorist attacks and the economic downturn, sales have rebounded above pre-attack levels with December posting a single-month sales record of US$28.4bn.
Steven C. Anderson, NRA president and CEO said: “Following 11 September, the restaurant industry proudly rose to the challenges facing our nation and helped mobilise every resource available to alleviate the impact of these tragic events.
“As a cornerstone of our nation’s economy, the 858,000 restaurants around the country helped ‘turn the tables’ and kept our nation moving forward during this difficult time.
“Overall, sales have returned to pre-attack levels and the industry continues to grow stronger.”
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By GlobalDataThe NRA launched a multifaceted public relations effort after the attacks, the Cornerstone Initiative Public Relations Campaign, to promote the essential role restaurants play and the financial impact the restaurant industry has on the nation’s economy.
An advertisement produced with the tag line “Join Us. Help America Turn the Tables” stressed the industry’s US$1 trillion annual economic impact and the fact that every US$1 spent dining out generates more than US$2 for other industries.
In addition to paid newspaper and radio advertising, as well as a partnership with other tourism-related industries to air television advertisements featuring President George W. Bush, the NRA’s campaign employs aggressive and creative public relations strategies and tactics to encourage Americans to maintain their regular patterns of eating out.
Sales impact
In dollar terms, the overall negative economic impact of the attacks on eating and drinking places exceeded US$1bn in September. After declining 2.4% in September, eating-and-drinking place sales recovered to register steady gains of 7.5% during the next three months. By November, monthly sales volume returned to pre-attack levels. In December 2001, sales jumped 5%, reaching a seasonally adjusted single-month record of US$28.4bn. While January sales dipped slightly, February rebounded and both remained well above pre-attack levels.
Employment impact
Total employment at eating and drinking places remains below pre-11 September levels. Sharp declines in employment stabilised in November 2001. After losing a seasonally adjusted 38,000 jobs in September and 55,000 jobs in October, the industry added 11,000 jobs in November and again in December. Another 2,000 jobs were added in January 2002 before 13,000 were lost in February.
Despite the economic impact of 11 September, the NRA is projecting restaurant-industry sales to reach US$407.8bn in 2002 – an increase of 3.9% over 2001 – marking the industry’s 11th consecutive year of real sales growth. With the national economy expected to grow at a somewhat improved pace in 2002, real restaurant industry sales (adjusted for inflation) should rise 1.4% compared with a 0.8% real gain in 2001.
