Restaurant News Roundup: February 2018
February was filled with plenty of newsworthy restaurant industry topics. It was hard to narrow it down to just a few but we think you’ll enjoy our choices. Below is a recap of restaurant news that hit the wire in February.
Independent Restaurant Count Dropped Three Percent in 2017
In the fall of 2017, the United States restaurant count reached 647,288, an overall 2 percent decrease in units from the previous year. Based on a restaurant census conducted by the NPD Group, the primary source of the decline in units was a 3 percent drop in independent restaurant units compared to a healthy restaurant chain unit count. Restaurant chains grew from 301,183 units, a 982-unit increase while the number of independent restaurants declined to 346,105 units, a decrease of 10,952 units. “To expand or not expand units is a calculated decision on the part of restaurant operators. Chains simply have more monetary resources to grow units whereas independents do not,” said Bonnie Riggs, NPD’s restaurant industry analyst. Read the full story here.
How Delivery Apps may put Your Favorite Restaurant Out of Business
In 2016, delivery transactions contributed to 7 percent of total restaurant sales. In a recent research report by Morgan Stanley analysts predict that that number could eventually reach 40 percent of all restaurant sales, and even higher percentage in urban areas and among casual restaurants. Delivery orders are beginning to replace some restaurants’ core business instead of complementing it – in the Morgan Stanley survey, 40 percent of delivery users said that a meal they ordered in was replacing one they would have otherwise eaten at a restaurant. Read the full story here.
Behind DineEquity’s New Name
DineEquity, the parent company of Applebee’s Neighborhood Grill and Bar and IHOP revealed its new name – Dine Brands Global, Inc. The new name “represents that fact that we’re building a new company that was very different than we were before,” said Stephen P. Joyce, CEO of Dine Brands, during an interview. During their fourth-quarter earnings call the company announced it would close 60 to 80 Applebee locations and 30 to 40 IHOP restaurants. However, they are expected to develop 10 to 15 new restaurants worldwide, the majority of which will be international openings. Dine Brands also plans to expand their portfolio by adding new brands like QSR and healthy fast-casual concepts. “We think we bring a lot of value to people who want to grow a concept,” Joyce added. Read the full story here.
Restaurants may be the New Shopping Mall ‘Anchor Tenants’
At one point, restaurants were not considered desirable tenants in shopping centers. “I remember trying to find leases and people we like, ‘No. We don’t want a restaurant in our building. It’s going to decrease the value because of problems with smells or whatever,’” said David Chang, a restauranteur. But now times are changing and landlords are seeking to replace anchor stores in malls that are closing according to a CNBC report. Many “anchor stores” are being replaced with restaurants because popular ones like The Cheesecake Factory draw in just as many customers and offer a unique experience for guests. “Restaurants are viewed as strong traffic drivers that draw frequent and regular customer visits, which create opportunities for neighboring retail offer,” according to a CBRE study. “For retail landlords, expanding a restaurant offering is a way to counterbalance the declining [retail] sales.” Read the full story here.
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About the Author
Chrisea Chosta is QSR’s Product Marketing Manager. Chrisea graduated from Western Kentucky University and works to launch new product initiatives and develops product resources. In her spare time, you can find her spending time with family, her chocolate and black labs, and aimlessly walking down every aisle of Target.