NRA Statement: Impact of War on Restaurants

If the impact of the war on the restaurant industry follows historical trends, restaurants initially will experience a downturn in sales, but rebound far more quickly and at a much faster pace than other sectors.

That is the analysis from the National Restaurant Association on the impact of the war in Iraq on the restaurant industry. The impact of the war on restaurants likely will vary by sector and location. For example, because war hinders domestic and international travel, restaurants that rely on travel and tourism, restaurants located in larger cities and tourist destinations, and fine-dining restaurants traditionally are more adversely affected.

During the last sustained period of international conflict -- Operation Desert Storm in the Persian Gulf in 1991 -- restaurant sales initially fell while Americans focused on current events. As the Gulf War progressed, Americans once again embraced restaurants for their traditional role as a social oasis for family and friends.

Despite the impact of the war, National Restaurant Association economists predict positive sales growth for restaurants this year. Even factoring in slower sales growth that could result from overseas conflict, the Association projects in its 2003 Restaurant Industry Forecast that restaurant-and-foodservice sales will reach $426 billion in 2003.

That is the analysis from the National Restaurant Association on the impact of the war in Iraq on the restaurant industry. The impact of the war on restaurants likely will vary by sector and location. For example, because war hinders domestic and international travel, restaurants that rely on travel and tourism, restaurants located in larger cities and tourist destinations, and fine-dining restaurants traditionally are more adversely affected.

During the last sustained period of international conflict -- Operation Desert Storm in the Persian Gulf in 1991 -- restaurant sales initially fell while Americans focused on current events. As the Gulf War progressed, Americans once again embraced restaurants for their traditional role as a social oasis for family and friends.

Despite the impact of the war, National Restaurant Association economists predict positive sales growth for restaurants this year. Even factoring in slower sales growth that could result from overseas conflict, the Association projects in its 2003 Restaurant Industry Forecast that restaurant-and-foodservice sales will reach $426 billion in 2003.

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