With sales projected to reach $863 billion in 2019, the restaurant industry is clearly serving up what diners are looking for. However, though the sector broadly has a positive outlook, key hurdles are putting pressure on these businesses.
“The restaurant industry has many challenges facing owners and operators due to high competition, thin profit margins averaging as low as 3-5%, and a depleting labor pool,” said Chris Hagle, president and national program manager at Insurance Programs of America, a division of Specialty Program Group. “Many of the traditional workers in the teenage years are turning to alternative industries, creating a compound risk of an already high turnover ratio with fewer options on increasing labor. This tough environment makes the focus on analyzing the total cost of risk not only vital, but mandatory.”
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