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.