Navigating Holiday Challenges and Opportunities for Global Restaurants in 2023
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Navigating Holiday Challenges and Opportunities for Global Restaurants in 2023
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In the United States, operators are seeing strong seasonal traffic, especially from corporate and family holiday parties, but they remain highly focused on avoiding downtime from technology failures, staff shortages, and supply chain issues. Recent industry guidance stresses upgrading point of sale and payment systems, cross training staff, and securing multiple suppliers to protect high margin weeks from disruption, reflecting lessons from prior holiday seasons when equipment breakdowns and ingredient shortages cut into year end profits.1
Labor and real estate costs remain a structural challenge. The Red Lobster case illustrates how legacy chains are adjusting: after a 2024 bankruptcy driven by high leases, supply chain disruptions, and changing consumer habits, the company is now pursuing a turnaround built on morale rebuilding, menu innovation, and cost control.2 Red Lobster has introduced new value focused items like seafood boil bags and five dollar drinks to recapture younger and cost conscious diners while also renegotiating leases and trimming its corporate workforce, targeting a return to positive net income in 2026 with projected adjusted EBITDA growth of more than forty percent between 2025 and 2027.2 4 This combination of affordability moves and back office cuts is increasingly typical across the casual dining segment.
On the supply side, volatility in agriculture has drawn fresh federal attention. Earlier this month the U S Department of Agriculture announced twelve billion dollars in emergency farmer aid as the new farm bill remains stalled, signaling continuing concern about upstream price and availability risks for core restaurant ingredients in 2026.3 Regulators also moved to slow changes to SNAP food assistance rules, delaying new eligibility and administrative requirements into 2026 after legal challenges.3 That pause may help stabilize near term demand at value oriented restaurants and bars that rely heavily on lower income guests.
Compared with reporting from earlier this year, the current environment shows modest improvement in guest traffic and slightly better visibility on demand, but profitability still hinges on aggressive cost management, technology reliability, and menu level value propositions as consumers remain price sensitive and quick to trade down or order less when checks rise.
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This content was created in partnership and with the help of Artificial Intelligence AI
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