Shifting Tides: Orlando’s Restaurant Scene Faces New Realities
Orlando is witnessing a significant transformation in its restaurant landscape as business owners adapt to a post-pandemic world. As many have shifted their strategies since the height of Covid-19, they now face challenges such as a labor shortage, soaring inflation, and evolving consumer habits. These factors have resulted in tighter profit margins and a fierce competition for survival among local eateries.
Overview of Current Challenges
Restaurants nationwide, including those in Orlando, are grappling with an increased number of competitors. A recent report from Ondeck Capital highlighted the need for restaurateurs to reassess their offerings and business strategies to remain viable. This report analyzed different restaurant concepts and their density per 100,000 residents, revealing which types are thriving and which are struggling.
Orlando’s Culinary Competition
In the Orlando area, Spanish cuisine holds the title for the most competitive sector characterized by a variety of Colombian, Puerto Rican, and Cuban establishments. Newer entries, like a Peruvian gastrobar in Lake Mary, have also added to this culinary competitive spirit. In contrast, delis represent the least saturated concept, often offering unique Spanish twists that differentiate them in the market.
Nationwide, steakhouses are among the most competitive, especially in midwestern cities such as Ohio and Indiana, where beef processing is a key industry. Similarly, French cuisine continues to thrive in coastal cities like San Francisco and New York, indicating regional preferences linked to demographic factors.
Rising Trends: Korean Cuisine
Among the varying concepts, Korean cuisine is emerging as a hot trend without reaching a saturation point in many markets. Alex Susskind, a professor at Cornell University, noted the growing popularity of Korean fried chicken, emphasizing that it has captured the interest of diners seeking fresh flavors. “It’s a twist on something familiar, and that’s appealing to many,” he explained.
Employment and Economic Contributions
The restaurant sector is poised to contribute approximately $1.4 trillion to the U.S. economy this year—accounting for about 6% of the GDP. This marks a significant increase from $472.4 billion in 2022. In Florida, particularly Orlando, projections indicate that 15,874 jobs will be added to the food services and drinking places sector by 2032, highlighting the importance of this industry in the local economy.
Market Adjustments Ahead
Despite the optimistic projections, changes in the market echo those seen during the Great Recession, when fine dining saw a sharp decline. Susskind suggests that an oversupply has led to inevitable corrections, implying that a reset may occur as consumers adjust their dining preferences post-Covid. Casual dining chains such as Applebee’s and Chili’s, as well as fast-casual outlets like Chipotle, are seen as bloated, indicating a potential downturn for these establishments.
Local Insights
In the Orlando area, some restaurants, such as Red Lobster and Tijuana Flats, have faced significant challenges, including bankruptcies and closures. Susskind points out that such waves of change are not uncommon, stating, “The pandemic disrupted growth patterns, and as a result, some concepts may need to reconsider their market presence.”
Conclusion
As Orlando’s restaurant scene continues to evolve, the surge in competition and shifting consumer tastes present unique challenges and opportunities for local businesses. While some concepts may struggle, others, such as Korean cuisine, illustrate a vibrant shift towards new dining experiences. Moving forward, adaptability will be crucial for restaurateurs navigating this changing landscape.
