What do hybrid work changes mean for restaurants?

Amazon made headlines recently with its announcement that it would require all employees to return to the office five days a week as of this coming January. The online retailer joins major companies such as UPS and Dell, which have made similar calls in recent months, and it launched speculation that many employers that are struggling to maintain their company culture amid hybrid work may see this as an opportunity to bring employees back to the office. While the response to Amazon’s announcement has been mixed, it’s surely good news for foodservice businesses. Years of hybrid work have created uncertainty around future planning for restaurants, reduced foot traffic and shifted consumer dining habits, among other effects. A report from CNBC acknowledged that while many restaurants and hotels in city downtowns have seen their sales come back to pre-pandemic levels, that’s only happening on Tuesdays, Wednesdays and Thursdays. So the return of employees to cities is likely to create more reliable, predictable foot traffic during lunch and the daily commute. It’s interesting timing for restaurants looking for opportunities – or for the right moment to make changes. In a recent report from Bank of America, which preceded the news from Amazon, Ted Lynch, managing director of the bank’s Global Commercial Banking’s Restaurant Group, predicted 2025 to be a busy year for restaurant mergers and acquisitions. Amy Forrestal, managing director of the Atlanta investment bank Brookwood Associates, agreed. John Hamburger, publisher of the Restaurant Finance Monitor, acknowledged that for foodservice businesses looking to grow or develop new concepts, “there are still a lot of reasons to be a buyer.” Other industry analysts have said in recent months that activity around restaurant bankruptcies and restructuring will largely depend on return-to-work trends. Now there are clear signs that such changes are on the horizon. If you’re looking for opportunities, now could be a good time to assemble advisors, assess your budget, define your goals and weigh the revenue potential of various options based on the shifting landscape.