Technomic trims restaurant industry growth expectations for 2017
With inflation expected to be 2.7% in both years, real growth will only be 0.8%.
As consumer traffic declines, it appears that both 2016 and 2017 will not be as positive as first anticipated. In particular, full-service restaurant growth has been shaved by 1.4 and 0.8 points for 2016 and 2017, respectively, to where total segment nominal growth for each year is expected to be 3.5%. With inflation expected to be 2.7% in both years, real growth will only be 0.8%.
"Major full-service chains, especially in the casual dining sector of the market, are really struggling," says Joe Pawlak, managing principal for the Chicago-based market research firm. "Consumer economic uncertainty, value issues and undifferentiated positions are putting strains on many full-service chains. However, independents seem to be holding their own, as consumers are gravitating to these establishments due to their unique offerings, local orientation and strong value propositions."