Study: Full-service restaurants face an uphill battle heading into 2017
The Top 5 largest full-service brands, four of which are casual dining, all either had negative or slow sales in 2016.
A report released by Technomic, Chicago, indicates 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 5 largest full-service brands, four of which are casual dining, all either had negative or slow sales in 2016, according to “2017 Top 500 Chain Restaurant Report.”
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 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 steakhouses because they marry quality food and service with an inviting atmosphere.
The report provides an exclusive 1-year sales forecast by menu category, an expanded outlook and opportunities section, as well as key themes to help navigate the current industry landscape.