Press Release
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FOR IMMEDIATE RELEASE
February 7, 2018
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MICHIGAN RESTAURANT ASSOCIATION FOURTH QUARTER TRENDS REPORT SHOWS STABLE 2017, POSITIVE OUTLOOK IN 2018
Tax Reform and Delivery Trends Explored
Tax Reform and Delivery Trends Explored
LANSING, MICH. – The Michigan Restaurant Association (MRA) today released its fourth quarter research report tracking statewide economic and demographic trends in the restaurant industry. The survey, conducted by independent firm Cleveland Research Company and distributed to MRA’s 4,500 members, indicates operator optimism in 2018, possibly linked to recent federal tax reform.
Highlights from the Q4-2017 Trends Report encompassing Michigan restaurant data include the following:
“Michigan restaurants weathered a challenging 2017 better than other parts of the country. It is clear that the recent tax cuts have Michigan restaurateurs feeling very positive about 2018,” said Justin Winslow, President & CEO of the Michigan Restaurant Association. “The Q4-2017 Trends Report indicates that operators are ready to reinvest the lion’s share of any tax windfall into their respective businesses. With the restaurant industry being Michigan’s second largest private employer that is already responsible for contributing nearly $17B to Michigan’s economy, operator reinvestment in their businesses will certainly have a positive ripple effect on Michigan’s economy overall.”
Participation was strong in the Q4-2017 Trends Report, with more than 1,460 MRA member locations and $615 million in annual revenue represented in the survey.
The Michigan Restaurant Association Industry Trends Report represents the first and only independent statewide research report tracking the state’s second-largest private-sector employer.
Highlights from the Q4-2017 Trends Report encompassing Michigan restaurant data include the following:
- Same-store sales increased by 2.2 percent in Q4 2017 and 2.3 percent overall in 2017. Operators anticipate substantially higher sales growth in 2018, projecting business growth at 4 percent.
- Traffic growth increased 1.5 percent in Q4 2017 and 1.9 percent overall in 2017. Operators expect a 3.2 percent increase in same store traffic in 2018.
- Federal tax reform passed by Congress in late 2017 is expected to positively impact the bottom line of most restaurant operators in Michigan in 2018. More than half of respondents (53 percent) believe their businesses will directly benefit from the Tax Cut and Jobs Act of 2017. Only 16 percent responded they did not believe the their business would benefit.
- For operators anticipating a decrease in their taxes, 44 percent said they would remodel their existing restaurants, 39 percent would buy new equipment or save additional earnings, 35 percent said they would invest in higher employee wages and 10 percent would build new restaurants.
- Delivery accounts for approximately 13 percent of Michigan restaurant sales currently. Notably, operators expect that number to nearly double (25.6 percent) in five years. The trend of third-party delivery service has yet to catch on in Michigan as strongly as in other parts of the country with only 9 percent of respondents claiming to use companies like Uber Eats, Door Dash and others.
“Michigan restaurants weathered a challenging 2017 better than other parts of the country. It is clear that the recent tax cuts have Michigan restaurateurs feeling very positive about 2018,” said Justin Winslow, President & CEO of the Michigan Restaurant Association. “The Q4-2017 Trends Report indicates that operators are ready to reinvest the lion’s share of any tax windfall into their respective businesses. With the restaurant industry being Michigan’s second largest private employer that is already responsible for contributing nearly $17B to Michigan’s economy, operator reinvestment in their businesses will certainly have a positive ripple effect on Michigan’s economy overall.”
Participation was strong in the Q4-2017 Trends Report, with more than 1,460 MRA member locations and $615 million in annual revenue represented in the survey.
The Michigan Restaurant Association Industry Trends Report represents the first and only independent statewide research report tracking the state’s second-largest private-sector employer.
About the Michigan Restaurant Association
The Michigan Restaurant Association (MRA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice community. Founded in 1921, the MRA represents nearly 4,500 Michigan foodservice establishments. The industry plays an integral role in Michigan's economy, employing more than 435,000 people and creating nearly $17B in annual sales.
The Michigan Restaurant Association (MRA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice community. Founded in 1921, the MRA represents nearly 4,500 Michigan foodservice establishments. The industry plays an integral role in Michigan's economy, employing more than 435,000 people and creating nearly $17B in annual sales.
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