Full-Service Restaurants Face Uphill Battle Heading into 2017

8adc43bf-9c7d-425a-92cf-e193a6454b24articleimage.jpg

12 May 2017 --- A recent Technomic report has indicated that the restaurant industry overall fared relatively well in 2016, but full service has experienced some highs and lows, with annual sales growth dipping to 1.4% and unit growth remaining flat. Traditional casual-dining chains most heavily contributed to this segment’s troubles. The top five largest full-service brands, four of which are casual dining, all either had negative or slow sales in 2016.

“Full-service chains continue to face strong competition from full-service independents and regional chain restaurants, which provide a more local experience,” says Darren Tristano, Winsight’s chief insights officer. “Today’s consumer looks for a more contemporary atmosphere, a strong adult beverage program and a menu of food and beverages that caters to local preferences. Operators also face stiff competition from limited-service restaurants that offer value, convenience, speed and customization.”

Bright spots within full service are polished/upscale and contemporary casual-dining chains, which increased sales by 4% and 4.5%, respectively. Even fine dining saw sales growth rise by 4.9% due to the affluence of the sector’s customer base, quality of offerings found at these brands and appeal this segment has with today’s consumer.

Growth categories include:

  • Asian: The 4.3% sales jump of this category represents consumer interest in more specialty-focused brands, as well as the continued appeal of ethnic cuisines.
  • Sports Bar: The 3.9% sales increase for this menu category demonstrates that opportunity still exists for brands to appeal to consumers with a varied craft beer selection, craveable pub fare like burgers and wings, and an overall sports-focused atmosphere.
  • Steak: This segment, which saw sales up 2.9%, had strong results from Texas Roadhouse (up 8.8%). Steakhouses are finding favor with consumers because they marry quality food and service with an inviting atmosphere.

Technomic’s 2017 Top 500 Chain Restaurant Report provides an exclusive one-year sales forecast by menu category, an expanded outlook and opportunities section, as well as key themes to help navigate the current industry landscape.

Related Articles

Food Ingredients News

Special Report: Trends in Pulses

29 May 2017 --- Packed with nutritional goodness, the health credentials of pulses is driving their use in new product developments around the world. Although consumption differs from country to country, the benefits of pulses - which includes contributing to the prevention of obesity, diabetes, heart disease and to help lower cholesterol and control weight - are universally pushing pulses’ demand. 

Business News

Fiberstar Presents Citrus Fiber as Clean Label Solution for Beverages

29 May 2017 --- Citri-Fi a natural citrus fiber provides multiple functionalities such as texture, emulsification, stabilization, pulp extension and mouthfeel when replacing ingredients such as carrageenan, gums, starch, corn-based maltodextrins and other chemically modified ingredients in clean label beverages.

Business News

EHL Ingredients Ramps Up Manufacturing Capacity with New UK Facility

29 May 2017 --- EHL Ingredients, a leading importer, blender and packer of food ingredients, has acquired a new UK manufacturing to develop the existing product range and further expand.

Business News

Lycored Announces Joint Venture with Algatechnologies

26 May 2017 --- Lycored have announced a joint venture with Algatechnologies (Algatech), a premier biotechnology company and global leader in cultivating microalgae and production of natural astaxanthin. Lycored will distribute Algatech's AstaPure natural astaxanthin carotenoid in the form of beadlets, increasing the brand's commercial reach for this product range in the North American market.

Business News

Too Much Turkey Dents Profits for Hormel Foods

26 May 2017 --- Producers of canned and cured meats and spam Hormel Foods says that an oversupply of turkey impacted its second quarter results and that its net earnings of US$211 million declined 2 percent compared to the previous year.

More Articles