BITENET WHITEPAPER
  • Bitenet: A global blockchain powered loyalty system for restaurant economy
  • Introduction
    • Broken Down Restaurant Economy
    • The Guest Ownership Problem
    • Customer Lifetime Value
  • White Paper Simplified
  • Bitenet Eat to Earn
  • Bitenet Ecosystem Overview
  • Bitenet Multiplier Effect
  • Tokenomics
  • Staking
  • Bitenet NFC
  • Zero-knowledge Proofs
  • On Chain Data as Digital Assets
  • Connecting with Food Banks
  • Universal Basic Income through Bitenet
  • Decentralized Identifiers (DIDs) and Ranking Systems on Bitenet
  • Bitenet Software
    • Customer App
    • Restaurant Portal
  • Bitenet Restaurant
  • Restaurant Customer
  • Promoter System
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  1. Introduction

Broken Down Restaurant Economy

Industry Growing BUT PROFIT MARGIN SHRINKING

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Last updated 11 months ago

Industry Growth vs. Shrinking Profit Margins

  • Sales Growth: In 2022, the U.S. restaurant industry generated around $890 billion in sales, projected to surpass $1 trillion in 2023. Despite being below 2019 levels, restaurant spending increased by 13% in March year-over-year, outpacing overall retail growth of 2.9%.

  • Economic Contribution: Restaurants contribute nearly 5% to the U.S. GDP and account for 45% of household food budgets.

Challenges Facing the Industry

  • High Closure Rates: 60% of independent restaurants close within the first year, and 80% within five years. Lack of support from programs like the Restaurant Revitalization Fund threatens 86% of these establishments with potential closure.

  • Declining Profit Margins: Over 25 years, profit margins have fallen from 15%-20% to just 4%.

  • Increasing Costs: Rising costs of services such as credit card processing, third-party delivery, and technology can consume over 5% of a restaurant's revenue.

Need for Strategic Shift

  • Economic Sustainability: Traditional operations and best practices are no longer sufficient for economic sustainability.

  • Focus Areas: Operators must prioritize guest engagement, marketing, and customer segmentation.

  • Maximizing Customer Lifetime Value (LTV): A fundamental reevaluation of operations is needed to maximize LTV, which could revolutionize the industry.