Restaurant Advisor Outlook and Foodservice Industry Overview

The dominant sources for guidance for a restaurant advisor and operators in the foodservice industry are the National Restaurant Association, Nation’s Restaurant News, and the National Potato Board. These organizations provide annual statistics relating to foodservice industry trends and comparisons that can impart invaluable information for restaurant owners or franchisees who want to keep abreast of changes to the industry standards and fluctuations in industry expectations.  The information presented is both helpful and informative and can indicate stable patterns or new trends in market direction. According to the 2013Restaurant Growth Index (RGI), prepared every year by Nielsen, there was a $3.8 billion decrease in aggregate industry sales and an abundance of new restaurant openings. However, this oversaturation of new restaurants has led to a decrease in per restaurant sales. Sales growth in fast casual restaurants has been better than quick service establishments, overall, with 44% of fast casual operators reporting greater profitability and sales than 2012, and 42% of them expect 2013to be even better. The top five restaurant markets for 2013are, in order: Ocean Pines, Maryland; Toledo, Ohio; Liberal, Kansas; Sevierville, Tennessee; and Boone, North Carolina. According to a restaurant advisor for InvestorPlace, the top 10 states for restaurant sales based on 2012 results are: (1) California, (2) Texas, (3) New York, (4) Florida, (5) Illinois, (6) Pennsylvania, (7) Ohio, (8) Georgia, (9) Massachusetts, and (10) Virginia. At the beginning of 2012, the top ten restaurant management chains (based on sales growth) were, in order: (1) Five Guys Burgers & Fries, (2) Jimmy John’s, (3) Chipotle Mexican Grill, (4) BJ’s Restaurant & Brewery, (5) Cheddar’s, (6) Casey’s General Stores, (7) Buffalo Wild Wings, (8) Sheetz, (9) Longhorn Steakhouse, and (10) Chick-Fil-A. Among the restaurants at the bottom of the list showing negative sales growth going into 2012 were Macaroni Grill, Captain D’s Seafood, P.F. Chang’s China Bistro, Hooters, Kentucky Fried Chicken, Burger King, CiCi’s Pizza, Ruby Tuesday, and Quiznos Subs. Likewise, at the beginning of 2012, the top ten restaurant chains (based on total units across all franchises and company-owned locations), were, in order: (1) Subway, (2) McDonald’s, (3) Starbucks, (4) Pizza Hut, (5) Burger King, (6) Dunkin’ Donuts, (7) 7-Eleven, (8) Wendy’s, (9) Taco Bell, and (10) Domino’s Pizza. As can be expected, traditional American fare remains at the top of list for popular choices by consumers, with burgers, pizza, and subs/sandwiches dominating other menu choices. This trend is not expected to change notably in the foreseeable future. Employment in the foodservice industry continues to steadily progress, with over 850,000 jobs added in the past three years since the beginning of the economic and occupational recovery in March 2010. From the first quarter of 2012 to the same period in 2013, restaurants and foodservice establishments added jobs at a strong 3.1%. The National Restaurant Association expects job growth, which reached a 17-year high in 2012, to continue outpacing the overall economy throughout the remainder of 2013and into 2014. The confidence level of restaurant operators, however, is not optimistic overall. In the National Restaurant Association’s March 2013Restaurant Industry Tracking Survey, only 25% of the total operators responding indicate that they expect economic and occupational trends to improve, while 55% stated they expect conditions to remain at or near the same level as has previously been experienced. Despite this pessimism, their overall outlook is still better than it was in mid-2012. The information you can receive from a knowledgable consultant can prove invaluable in assisting you streamline your restaurant planning and operations. To obtain the professional guidance of a restaurant advisor with regard to foodservice trends and other industry forecast and information, speak with one of our industry experts today.