2008 Restaurant Trends
Restaurants are shrinking, going greener, and
popping up in unconventional places. Marketing campaigns are moving online and bold
flavors are finding their way into all cuisine types. Restaurant concepts and cuisines
are both changing form, and consolidation is happening on several fronts of the
restaurant industry.
Americans develop an appetite for epicurean vacations, and American brands go overseas
while foreign brands build here. Niche restaurant concepts continue to prosper and
‘baby gorillas’ strive to be the next big thing.
Quantified Marketing Group founder and CEO Aaron Allen
predicts the top trends poised to influence the restaurant industry in the coming
year in Quantified Marketing Group’s 2008 Restaurant Trend Forecast.
Modified-casual dining A new category in the restaurant industry, modified-casual
dining, is poised for rapid growth over the next several years.
Modified-casual dining offers the same service and amenities of a large casual dining
chain or mega-independent casual operation, but in a much smaller footprint.
Like fast-casual restaurants, modified-casual concepts generally open inside in-line
or end cap spaces, which are smaller than free-standing structures, and offer a
specialized menu which allows for scaled-down back-of-the-house operations.
But modified-casual restaurants are more sophisticated than fast-casual operations
because they offer table service instead of counter service. They also carry a higher
check average than fast-casual establishments.
Modified-casual operations offer more promising sales-to-investment ratios than
fast-casual concepts. A modified-casual operation may cost less than $800,000 to
develop, but can generate more than $1 million in sales. In contrast, fast-casual
operations costs $500,000 or less to develop, but traditionally produce less than
$1 million in revenue.
Compressing size to drive sales Restaurant operations are diminishing
in size as restaurateurs strive to boost efficiency and profits. The core aspect
of new development is a high sales-to-square-foot ratio which leaves no room for
inefficiency in design or floor space. Operators are scaling back kitchen designs
and operations to save on floor space and turning to commissaries to produce original
recipe products off-site.
Global consciousness One of the most powerful words in branding
is 'consciousness'. Consumers today are seeking out businesses that are focused,
not just on making profits, but on making the world a better place. The restaurant
industry is beginning to make global consciousness a top priority by showing they
care on every level.
More and more restaurant companies have taken steps to make a difference by preserving
natural resources, designing operations with conservation in mind, building affiliations
with non-profit organizations, and by fostering personal growth in the workplace
through mentoring, educational and diversity programs.
Non-traditional sites Escalating real-estate prices and dwindling
availability of premium locations are convincing many quick-service and fast-casual
operators to open in non-traditional sites where construction costs are lower, rental
terms are more reasonable, and volume and sales rival traditional venues.
Operators are opening on campuses, hospitals, office buildings, airports, stadiums,
kiosks, and mini-outlets in convenience stores. In these non-traditional sites,
competition is less fierce and brand-building is easier.
Consolidation Consolidation is changing the face of the restaurant
industry. Top restaurant companies are merging to boost their economic and growth
potential and win a larger market share.
Consolidation is also gaining steam in the form of purchasing cooperatives. Small
restaurant operators are teaming up and forming or joining buying groups that allow
them to enhance their purchasing power, lower costs, and improve their competitiveness,
all while retaining their own brand identity.
Drastic Concept Overhauls As the casual-dining segment continues
to erode, mid-market chains like Bennigan's Grill & Tavern, Applebee's Neighborhood
Bar & Grill, and Chili's Grill & Bar will be forced to reinvent themselves
to win back guests. Many will need to introduce new menus or conceptual designs
to survive.
Experiential Branding Restaurants can't just be concerned with
good food, good service, and good ambience anymore. Experiential branding is a restaurant's
opportunity to build lifelong relationships with guests.
The guest experience is everything. Operators must ensure the restaurant's brand
is in action through all touch points, including culinary offerings, service, uniforms--
even wall decor-- to win credibility and loyalty with customers.
To read the full article, please visit
Running Restaurants.
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