Restaurants, 2024 new numbers

Working within the Experience Economy

• Date: 28.1.2025

• Institution: Haaga-Helia

Accommodation and Food Service Activities

• Definition: Involves the provision of short-stay accommodation for travelers and complete meals and drinks for immediate consumption.

• Supplementary Services: Vary widely depending on the establishment.

• Date: 28.1.2025

Accommodation Types

• Types of Accommodation:

  • Hotels and similar establishments

  • Holiday and short-stay accommodations

  • Camping grounds, RV parks, trailer parks

• Source: Statistics Finland, 2022

• Date: 28.1.2025

Food and Beverage Service Activities

• Definition: Activities that provide meals or drinks for immediate consumption.

• Examples:

  • Traditional restaurants

  • Self-service and take-away establishments

  • Event catering and other food service activities

  • Food production in various venues (schools, hospitals, etc.)

• Key Focus: Immediate consumption of meals, not the venue type.

• Date: 28.1.2025

Importance of Food and Beverage Services

• Integral to travel agencies and agents.

• Business Environment: Constantly evolving and affecting operations.

• Date: 28.1.2025

Turnover and Staff Statistics (2019-2020)

• Turnover:

  • 2019: Approximately €7.3 billion (+5% from 2018)

  • 2020: Approximately €5.4 billion (-26% from 2019)

• Company and Staff Numbers:

  • 2019: 12,244 companies, 65,750 staff

  • 2020: 12,270 companies, 54,000 staff

• Impact of COVID-19: Analysis needed on company growth despite the pandemic.

• Date: 28.1.2025

MaRa’s Turnover Forecast

• Prediction: Turnover to return to 2019 levels by 2023.

• Statistics: Analysis of turnover in relation to Finnish GDP from 2007-2022.

• Date: 28.1.2025

Employment Statistics in Restaurant Business

• Accommodation Sector: Approximately 16,000 employees (2022 forecast).

• Restaurant Sector: Approximately 74,300 employees (2022 forecast).

• Discussion on COVID-19 impact on employment.

• Date: 28.1.2025

Employment Trends in the Service Sector

• Increase in job numbers in the service sector from 2008-2020, while other sectors saw reductions.

• Date: 28.1.2025

Workforce Characteristics

• Predominantly part-time and temporary workers, with many employees under 35 years old.

• Discussion on implications of this demographic.

• Date: 28.1.2025

Important Skills in Service Industry

• Key skills include:

  • Business acumen

  • Proactivity and motivation to adapt

  • Interactive communication with customers and stakeholders

• Employers value candidates with a willingness to learn and develop.

• Source: Skills Barometer 2022

• Date: 28.1.2025

Types of Restaurants

• Independent Restaurants:

  • Smaller purchasing power but quicker changes and personalization possible.

• Chains:

  • Larger purchasing power, better forecasting, consistent quality control, higher marketing budgets.

Franchising and Other Restaurant Categories

• Franchising:

  • Easier entry for inexperienced owners but may result in strained relations.

• Sandwich Shops:

  • Easy to open; limited cooking required.

• Quick-Service Restaurants (QSR):

  • Fast service with pre-pay options; must maintain efficiency and technology use.

Casual and Fine-Dining Restaurants

• Casual Restaurants:

  • Signature items and relaxed atmosphere cater to modern lifestyles.

• Fine-Dining Restaurants:

  • Emphasis on upscale experiences, trained staff, and higher average checks.

Ethnic and Theme Restaurants

• Ethnic Restaurants:

  • Diverse cuisines reflecting cultural heritage; must adapt to consumer trends.

• Theme Restaurants:

  • Built around concepts or ideas, often celebrity-related; shorter lifespans but profitable in merchandise.

Coffee Shops and Chef-Owned Options

• Coffee Shops:

  • Originally coffee-focused but now offer broader menus; significant evolution based on market demand.

• Chef-Owned Restaurants:

  • Led by motivated chefs but may lack business management knowledge.

Centralized Home Delivery Restaurants

• Significant rise in demand for delivery services, especially in urban areas.

• Ghost Restaurants:

  • No physical storefronts; focus purely on delivery.

Public Sector Food Services

• Essential for schools and institutions; must cater to diverse dietary needs and preferences.

• Significant influence on Finnish culture and nutritional policies.

• Statistics: Finns consumed 130 meals out of home in 2018, half provided by the public sector.

Purpose of Restaurant Services

• Motivation for Use:

  • Physiological, economic, social, and psychological needs drive restaurant choices.

• Discussion on choosing restaurants based on personal preferences.

Job Titles in the Restaurant Industry

• Overview of various roles available ranging from management to kitchen and service positions.

Meal Pricing Breakdown

• Revenue Distribution:

  • €100 meal allocation: 25% wages, 29% raw materials, 28% taxes, 9% rents, 4% other costs, 5% EBITDA.

Future Trends in Restaurant Usage

• Consumer Predictions:

  • 75% of consumers will use services as before, 12% will increase use, and 13% will decrease.

  • Rise in preference for food delivery services post-pandemic.

Finnish Hospitality Associations

• MaRa: Leading trade and labour market association covering various hospitality sectors.

• PAM: Union representing service sector workers, focusing on collective agreements and member interests.

Trends to Monitor

• Summary of significant trends affecting the hospitality industry moving forward.

Working within the Experience Economy

Date: 28.1.2025Institution: Haaga-Helia

Accommodation and Food Service Activities

Definition: Involves the provision of short-stay accommodation for travelers and complete meals and drinks for immediate consumption. This sector includes a variety of lodging options, catering to a wide range of travelers and their preferences.

Supplementary Services: These services encompass a broad spectrum, designing an inclusive customer experience that can include concierge services, room service, event planning, and wellness programs, depending on the establishment's offerings.

Accommodation Types

Types of Accommodation:

• Hotels and Similar Establishments: Ranging from budget to luxury, hotels often offer amenities such as pools, fitness centers, and in-house dining.

• Holiday and Short-Stay Accommodations: Typically more relaxed and cost-effective, including vacation rentals and serviced apartments.

• Camping Grounds, RV Parks, Trailer Parks: Targeting outdoor enthusiasts, these facilities provide essential amenities for a camping experience while promoting a connection with nature.

Source: Statistics Finland, 2022

Food and Beverage Service Activities

Definition: Activities that provide meals or drinks for immediate consumption in various settings. This encompasses various dining experiences tailored to customer desires.

Examples:

• Traditional Restaurants: Focus on dine-in experiences with extensive menus.

• Self-service and Take-away Establishments: Catering to fast-paced lifestyles with quick meal options.

• Event Catering and Other Food Service Activities: Providing tailored food solutions for events and gatherings.

• Food Production in Various Venues: Includes institutional food services in schools, hospitals, and corporate settings, providing balanced meals based on dietary needs.

Key Focus: Emphasizes the immediate consumption of meals rather than the venue type, highlighting the importance of the dining experience and service quality.

Importance of Food and Beverage Services

• Integral to travel agencies and agents, serving as a critical component in travel planning and customer satisfaction.

• Business Environment: This sector is characterized by constant evolution influenced by consumer preferences, technology advancements, and emerging trends, directly affecting business operations and strategies.

Turnover and Staff Statistics (2019-2020)

Turnover:

• 2019: Approximately €7.3 billion (+5% from 2018), demonstrating a growth trajectory before the pandemic.

• 2020: Approximately €5.4 billion (-26% from 2019), highlighting the significant impact of COVID-19 on the hospitality sector.

Company and Staff Numbers:

• 2019: 12,244 companies employing 65,750 staff, contributing to the economic backbone of the service industry.

• 2020: 12,270 companies employing 54,000 staff, reflecting downsizing trends and the market's resilience despite challenges.

Impact of COVID-19: Further analysis is needed on company growth and shifts in workforce dynamics during the pandemic.

MaRa’s Turnover Forecast

Prediction: Anticipation for turnover to return to 2019 levels by 2023, indicating a rebound as consumer confidence returns and restrictions ease.Statistics: Analysis of turnover trends in relation to Finnish GDP from 2007-2022 will provide insight into long-term recovery strategies.

Employment Statistics in Restaurant Business

• Accommodation Sector: Approximately 16,000 employees projected for 2022, showcasing employment stabilization efforts in this sub-sector.

• Restaurant Sector: Approximately 74,300 employees projected for 2022, reflecting a heavy reliance on this sector for job creation and stability.

• Discussions on the impact of COVID-19 on employment highlight ongoing labor challenges and emerging staffing needs.

Employment Trends in the Service Sector

• A notable increase in job numbers in the service sector from 2008-2020, while other sectors experienced reductions, indicating a shift in workforce demands and economic resilience of service industries during uncertain times.

Workforce Characteristics

• Predominantly part-time and temporary workers, with a young workforce, many employees under 35 years old. This demographic shift has implications for employee retention, training, and career development opportunities within the sector.

Important Skills in Service Industry

Key skills include:

• Business Acumen: Understanding market dynamics and effective management principles.

• Proactivity and Motivation to Adapt: Essential for responding to changing consumer needs and industry demands.

• Interactive Communication with Customers and Stakeholders: Critical for delivering excellent service and building relationships.

• Employers favor candidates willing to learn, emphasizing continuous development in a competitive environment.

Source: Skills Barometer 2022

Types of Restaurants

Independent Restaurants:

• Smaller purchasing power that allows for quicker changes and personalized service, fostering strong customer loyalty.

Chains:

• Larger purchasing power facilitates better forecasting, consistent quality control, and significant marketing budgets, allowing for expansive reach and brand recognition.

Franchising and Other Restaurant Categories

• Franchising: Streamlines entry for inexperienced owners but can lead to complex relationships due to brand standards.

• Sandwich Shops: Minimal cooking requirements leading to easier entry into the market.

• Quick-Service Restaurants (QSR): Focus on speed of service and technology integration; efficiency is paramount.

• Casual and Fine-Dining Restaurants:

  • Casual: Offers a laid-back atmosphere that reflects contemporary dining trends.

  • Fine-Dining: Concentrates on upscale experiences, trained staff, and high customer expectations.

• Ethnic and Theme Restaurants:

  • Ethnic: Provides diverse cuisines that mirror cultural heritage; must remain agile in adapting to changing consumer tastes.

  • Theme: Built around specific ideas or trends, often incorporating merchandise sales for profitability.

• Coffee Shops and Chef-Owned Options:

  • Coffee Shops: Expanded from mere coffee offerings to extensive menus in response to market demand.

  • Chef-Owned Restaurants: Focused on culinary creativity but often lack strong business management knowledge.

• Centralized Home Delivery Restaurants: Rising demand for delivery services is reshaping traditional restaurant models.

• Ghost Restaurants: Operate without physical storefronts, focusing solely on delivery, capitalizing on the e-commerce trend.

Public Sector Food Services

• Crucial for schools and institutions, where diversity in dietary requirements and preferences is essential for satisfaction and nutrition. These services shape Finnish culture and have a significant impact on national nutritional policies.

• Statistics: In 2018, Finns consumed 130 meals out of home, with half catered by public sector providers.

Purpose of Restaurant Services

Motivation for Use:

Physiological, economic, social, and psychological needs drive choices in restaurant selection, showcasing the multifaceted role that dining establishments play in everyday life.

• Discuss the interplay of personal preferences and societal trends in determining dining decisions.

Job Titles in the Restaurant Industry

• An overview of various roles available, ranging from management to kitchen and service positions, including baristas, chefs, restaurant managers, and waitstaff, each playing an integral part in the hospitality ecosystem.

Meal Pricing Breakdown

Revenue Distribution:

For a €100 meal, the allocation includes:

• 25%: Wages,

• 29%: Raw materials,

• 28%: Taxes,

• 9%: Rents,

• 4%: Other costs,

• 5%: EBITDA.This breakdown highlights the operational costs essential for maintaining profitability.

Future Trends in Restaurant Usage

Consumer Predictions:

• 75%: Expect to use services as before,

• 12%: Anticipate increased use,

• 13%: Forecast a decline in restaurant usage.

• Observation of a significant rise in preference for food delivery services emerging post-pandemic, indicating changing consumer behavior and expectations.

Finnish Hospitality Associations

• MaRa: The leading trade and labour market association encompassing various hospitality sectors, advocating for industry standards and collaboration.

• PAM: Union representing service sector workers, focusing on collective agreements, labor rights, and interests of its members.

Trends to Monitor

A summary of critical trends affecting the hospitality industry moving forward, including technological advancements, shifts in consumer behavior, and evolving health safety regulations, which are pivotal for strategic planning and member engagement.