We don’t need a room of experts to confirm opening a restaurant is daunting. First-year failure rates jump around dramatically, but it’s splitting hairs. The reality is that many restaurants open, but far fewer enjoy lasting success.
Buffalo Wild Wings’ turnaround efforts have chipped away at something chief executive Paul Brown alluded to before the ink dried on Arby’s deal to acquire the 1,200-unit chain. He said this to Business Insider last February, shortly after the $2.
If you examine the past decade, the reality hasn’t changed all that much for restaurants. Guest counts have declined as brands flood units into a saturated system. Per the Bureau of Labor Statistics, the number of restaurants lifted nearly 16 percent in the last 10 years.
It isn’t a novel statement: Demand for delivery is shaking up the restaurant industry. Guests want the food they’d grab in-store, where they are, as fast as they can get it.For full-service restaurants, this means adapting to a more quick-serve style format.
Carrabba’s Italian Grill president Michael Kappitt touched on a universal truth for restaurants. “We have competitors everywhere,” he says. But that’s where the generalizations end. There are four independents for every multi-unit Italian brand in the country.
The independent restaurant scene is always in flux. According to CHD Expert, the segment represents 68 percent of the total U.S. dining landscape. As of October 2017, there were more than 489,900 total independent units (defined as a establishment with fewer than 10 units by this study).
Across the restaurant industry, positive same-store sales growth—although modest—remains a consistent. This past quarter, according to BDO’s benchmarking report The Counter, same-store sales for publicly traded brands hiked 1.
One positive side effect of rising wages, as far as restaurants are concerned, is higher consumer spending. Does that balance out the labor issue? Probably not, but it doesn’t hurt, either. In last year’s U.