It is a presidential election year and, unlike 2008, I expect a stronger economy in 2012. Specifically, operators who are value customer focused will see increases in covers and sales. These value oriented customers will pay a small premium for quality while avoiding extravagance.
Commodity markets will see continued volatility due to severe weather patterns, the linking of grain prices to oil prices, and a overall increase in consumption.
The constraints on menu item prices will ease to a greater degree than 2011. Operators will begin to pass inflation increases along to customers.
I expect employment to improve as Americans become more pragmatic and fill positions they have shunned in the past. Many industries are still breaking even or showing a loss. The workforce will need to grow with a stronger economy. I see a year end unemployment rate below 8%.
