Restaurant sales to top $500 billion in 2006

Restaurant industry sales are expected to reach a record $511 billion in 2006, the first time sales will cross the half-trillion dollar mark.

According to the National Restaurant Association’s 2006 Restaurant Industry Forecast, the projected annual sales would mean a 5.1 percent increase over last year and a total economic impact exceeding $1.3 trillion. With more than $1.4 billion a day in sales, the restaurant industry’s share of the consumer food dollar is nearly 48 percent, according to Steven C. Anderson, president and CEO of the association.

Among the major segments, sales at full service restaurants are projected to reach $173.4 billion in 2006, an increase of 5.2 percent over 2005. Full service operators are optimistic about the economy, as a solid 69 percent of fine-dining, 59 percent of casual-dining and 48 percent of family-dining operators indicate that they expect their sales in 2006 to be higher than in 2005.

Quick service restaurants are projected to register sales of $142.4 billion in 2006, a gain of 5 percent over 2005. Consumer demand for convenience and value will continue to drive growth, while operators continue to face stiff competition from grocery and convenience stores.

Economic growth is expected in all regions of the country, with all regions also projecting job growth in 2006. The top regions in terms of sales growth remain in the West and the South. These regions continue to have the fastest growth in local economies, disposable income and population. The restaurant industry in Nevada will have the highest sales growth of any state, followed by Arizona, Florida, Colorado and Texas.