Describe your favorite restaurant concept and why it resonates with you personally. Connect readings and class discussions regarding the various components of a restaurant concept within your description.

Driven by a strengthening economy, restaurant industry sales are expected to hit a record high in 2015. According to the National Restaurant Association’s 2015 Restaurant Industry Forecast, restaurant-and- foodservice sales are projected to top $709 billion, up 3.8 percent from 2014.

In inflation-adjusted terms, industry sales

are projected to increase 1.5 percent in 2015. Although 2015 will represent the sixth consecutive year of real growth in restaurant sales, the gains remain below what would be expected during a normal post-recession period.

The restaurant industry employs 14 million individuals in one million locations, and

remains the nation’s second largest private sector employer. The restaurant industry will outpace total U.S. job growth for the 16th consecutive year in 2015, keeping the industry among the economy’s leaders in job creation. In the next decade, restaurants will add 1.7 million new positions.

For details, visit Restaurant.org/Forecast.

2015 Restaurant Industry Forecast

EXECUTIVE SUMMARY

SALES & ECONOMIC FORECAST

Adding It All Up: $709.2 billion Projected restaurant industry sales in 2015

*Eating places include tableservice restaurants and quickservice restaurants, cafeterias and buffets, social caterers, and snack and nonalcoholic beverage bars.

Eating Places*: $471.1 billion

Bars and Taverns: $20.6 billion

Managed Services: $49.5 billion

Lodging Places: $36.7 billion

Retail, Vending, Recreation, Mobile: $70.2 billion

Commercial Restaurant Services $648.0 billion

Noncommercial Restaurant Services $58.5 billion

Military Restaurant Services $2.7 billion

Present

Restaurant Industry’s Share of the Food Dollar

25%

47%

1955

Restaurant Industry Sales (In Billions of Current Dollars)

*projected

$709.2

$42.8

$119.6

$239.3

$379.0

$586.7

2015

1970

1980

1990

2000

2010

*

*projected

RESTAURANT INDUSTRY EMPLOYMENT

2005

2015*

2025*

12.2 million

14.0 million

15.7 million

TABLESERVICE TRENDS

WORKFORCE OUTLOOK & TRENDS

1 Arizona 23.8%

2 Florida 22.4%

3 Texas 22.0%

4 Georgia 21.1%

5 Utah 21.0%

6 North Carolina 20.5%

7 South Carolina 18.6%

8 Alaska 16.1%

9 Colorado 15.7%

10 Alabama 15.3%

11 Arkansas 14.7%

12 Oregon 14.7%

Source: National Restaurant Association

Tableservice Restaurant Segment Sales Growth

Nominal Sales Growth Real (Inflation-adjusted) Sales Growth

Source: National Restaurant Association; *projected

2012 2015*2013 2014

3.4%

0.7%

2.4%

0.1%

2.8%

0.4%

2.9%

0.6%

Tableservice Operators’ Outlook for Sales and Profitability in 2015

Better Than 2014 About the Same as 2014 Down From 2014

Source: National Restaurant Association, Restaurant Trends Survey, 2014

Tableservice Sales in 2015

Family Dining Fine DiningCasual Dining

56%

36%

7%

58% 61%

35%

4%

36%

1%

Tableservice Profitability in 2015

Family Dining Fine DiningCasual Dining

48%

39%

12%

46% 45%

56%

7%

33%

10%

Significant challenge

Moderate challenge

Little or no challenge

Significant challenge

Moderate challenge

Little or no challenge

Food costs 35% 31% 31% 31% 41% 26% 26% 51% 20%

The economy 29% 41% 29% 28% 47% 23% 27% 47% 24%

Recruiting and retaining employees 16% 31% 53% 23% 36% 40% 11% 40% 46%

Attracting new customers 14% 41% 44% 18% 43% 39% 17% 44% 37%

Bringing back repeat customers 10% 22% 66% 12% 26% 62% 9% 23% 67%

Obtaining credit or financing 7% 24% 56% 11% 23% 52% 9% 23% 60%

Source: National Restaurant Association, Restaurant Trends Survey, 2014

Family Dining Casual Dining Fine Dining

Significant challenge

Moderate challenge

Little or no challenge

Tableservice Operators Rate Operational Challenges

Fastest Restaurant Job Growth Projected growth in restaurant-and-foodservice jobs, 2015 to 2025

Teens Represent Shrinking Proportion of the Restaurant Workforce

16 to 19 20.9% 16.5%

20 to 24 21.4% 24.4%

25 to 34 23.1% 24.5%

35 to 44 16.1% 14.7%

45 to 54 11.5% 11.5%

55 to 64 5.2% 6.5%

65 or older 1.9% 1.9%

Source: Bureau of Labor Statistics

Composition of the restaurant workforce

2007 2013Age group

LIMITED-SERVICE TRENDS

TECHNOLOGY TRENDS

Projected 2015 Limited-Service Sales Growth

Nominal Sales Growth Real (Inflation-adjusted) Sales Growth

Source: National Restaurant Association

Cafeterias, grill-buffets, and buffets

4.3%

2.1%

5.2%

3.0%

-1.1%

-3.5%

Snack and nonalcoholic beverage bars

Quickservice and fast-casual restaurants

Significant challenge

Food costs 23% 46% 27% 29% 44% 23%

The economy 19% 52% 26% 23% 53% 21%

Recruiting and retaining employees 21% 38% 40% 22% 37% 39%

Attracting new customers 15% 41% 43% 15% 41% 43%

Bringing back repeat customers 10% 24% 66% 11% 25% 63%

Obtaining credit or financing 10% 23% 48% 11% 27% 51%

Source: National Restaurant Association, Restaurant Trends Survey, 2014

Fast casual

Limited-Service Operators Rate Operational Challenges

Moderate challenge

Little or no challenge

Significant challenge

Quickservice

Moderate challenge

Little or no challenge

Social Presence Restaurant activity on social media

Very active Somewhat active Not active Plan to be more active in 2015

Source: National Restaurant Association, Restaurant Trends Survey, 2014

Family dining

32%

48%

20%

41%

34%

55%

11%

46%

40% 43%

16%

51%

39% 42%

17%

47%

29%

51%

19%

47%

Casual dining Fine dining Quickservice Fast casual

Limited-Service Sales in 2015

Limited-Service Operators’ Outlook for Sales and Profitability in 2015

Limited-Service Profitability in 2015

Fast casualQuickservice

59%

36%

3% 5%

33%

62%

Fast casualQuickservice

54%

40%

6%

43% 49%

7%

Better Than 2014 About the Same as 2014 Down From 2014

Source: National Restaurant Association, Restaurant Trends Survey, 2014

Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry. Together with the

National Restaurant Association Educational Foundation, our shared vision is to lead America’s restaurant and foodservice by elevating

its prosperity, prominence and participation, enhancing the quality of life for all we serve. The National Restaurant Association mission is

to serve our members by advancing and protecting America’s restaurant industry. For additional restaurant industry research beyond

the scope of this report, visit Restaurant.org/Research.

TECHNOLOGY TRENDS Continued

FOOD & MENU TRENDS

Looking for Local Restaurant operators who say their custom- ers are more interested in locally sourced items than they were two years ago

84% Casual dining

85% Family dining

87% Fine dining

53% Quick- service

66% Fast casual

More healthy options available compared to two years ago 81% 84% 78% 79% 88% 82% 80% 80%

More likely to visit a restaurant that offers healthy options 76% 81% 69% 79% 75% 74% 72% 75%

Order more healthful options at restaurants now than two years ago 67% 71% 63% 68% 67% 71% 66% 63%

Source: National Restaurant Association, National Household Survey, 2014

All Age Age Age Age Age adults Women Men 18-34 35-44 45-54 55-64 65+

Healthy Menu Expectations Consumers take notice of healthful menu options

Women Men

TABLESERVICE

1 Locally sourced meats and

seafood

2 Locally grown produce

3 Environmental sustainability

4 Healthful kids’ meals

5 Natural ingredients/

minimally processed food

Source: National Restaurant Association, What’s Hot in 2015 chef survey

LIMITED-SERVICE 1 Gluten-free items

2 Sustainable food items

3 Locally sourced produce

4 Fruit/vegetable sides in

kids’ meals

5 Mini-desserts/dessert bites

Source: National Restaurant Association, Food and Menu Trends Survey, 2014

TOP 5 2015 MENU TRENDS

Tech Use More Common Consumer usage of restaurant technology compared to two years ago

Source: National Restaurant Association, Technology Innovations Consumer Survey, 2014

35% More likely

13% Less likely

40% The same

12% Never use/ Don’t know

Tech Matters Consumers who say the availability of technology options is an important factor when choosing a restaurant

Tableservice restaurant Limited-service restaurant

Source: National Restaurant Association, National Household Survey, 2014

All adults 24%

29%

33% 41%

28% 39%

20% 31%

16% 18%

15% 10%

25% 32%

Age 18-34

Age 35-44

Age 45-54

Age 55-64

Age 65+

Children under 18 in

houshold