020339 Restaurants Bounce Back in Months Since 9/11March 18, 2002Washington - Six months following the events of September 11, the National Restaurant Association reported that the restaurant industry remains resilient as it continues to recover. Although the restaurant industry overall was impacted after the terrorist attacks and the economic downturn, sales have rebounded above pre-attack levels with December posting a single-month sales record of $28.4 billion. "Following September 11, the restaurant industry proudly rose to the challenges facing our nation and helped mobilize every resource available to alleviate the impact of these tragic events. Many thanks go to the millions of Americans who answered President Bush's and Mayor Giuliani's calls to return to normalcy and demonstrate our resolve as a nation by returning to our daily routines. As a cornerstone of our nation's economy, the 858,000 restaurants around the country helped 'turn the tables' and kept our nation moving forward during this difficult time. Overall, sales have returned to pre-attack levels and the industry continues to grow stronger every day," said Steven C. Anderson, Association president and chief executive officer. After the attacks, the National Restaurant Association launched a multifaceted public relations effort, the Cornerstone Initiative Public Relations Campaign, to promote the essential role restaurants play in the lives of every American and the tremendous financial impact the restaurant industry has on the nation's economy. An advertisement produced with the tag line "Join Us. Help America Turn the Tables" stressed the industry's $1 trillion annual economic impact and the fact that every $1 spent dining out generates more than $2 for other industries. This helped to underscore that dining out is a great way to revive spirits as well as the economy. In addition to paid newspaper and radio advertising, as well as a partnership with other tourism-related industries to air television advertisements featuring President George W. Bush, the Association's campaign employs aggressive and creative public relations strategies and tactics to encourage Americans to maintain their regular patterns of eating out. Sales Impact In dollar terms, the overall negative economic impact of September 11 on eating and drinking places exceeded $1 billion in September. After declining 2.4 percent in September, eating-and-drinking place sales recovered to register steady gains of 7.5 percent during the next three months. By November, monthly sales volume returned to pre-attack levels. In December 2001, sales jumped 5.0 percent, reaching a seasonally-adjusted single-month record of $28.4 billion. While January sales dipped slightly, February rebounded quickly and both remained well above pre-attack levels. Employment Impact Total employment at eating and drinking places remains below pre-September 11 levels. Sharp declines in employment stabilized in November 2001. After losing a seasonally-adjusted 38,000 jobs in September and 55,000 jobs in October, the industry added 11,000 jobs in November and again in December. Another 2,000 jobs were added in January 2002 before 13,000 were lost in February. Despite the economic impact of September 11, the National Restaurant Association is projecting restaurant-industry sales to reach $407.8 billion in 2002 -- an increase of 3.9 percent over 2001 -- marking the industry's 11th consecutive year of real sales growth. With the national economy expected to grow at a somewhat improved pace in 2002, real restaurant industry sales (adjusted for inflation) should rise 1.4 percent compared with a 0.8 percent real gain in 2001. The National Restaurant Association, founded in 1919, is the leading business association for the restaurant industry, which is comprised of 858,000 restaurant and foodservice outlets and a work force of 11.6 million employees -- making it the cornerstone of the economy, career opportunities and community involvement. Along with the National Restaurant Association Educational Foundation, the Association works to represent, educate and promote the rapidly growing industry. For more information, visit our Web site at www.restaurant.org.
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