The restaurant industry is facing many challenges and threats. Many people would rather spend their money on other things such as travel. They are eating out less partially because of the rising costs. Technology is not a draw factor, but it may replace workers as wages rise. The AlixPartners study on the restaurant industry shows that growth will not be as strong as in the past. Some reasons touted for the poor performance include the focus on bringing prices down too much. There are a lot of factors though, which is why this should be studied more in depth.
Published April 21, 2017
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Published April 21, 2017
Technology, delivery, labor costs, and growth are four areas that are changing the restaurant industry. Quick-service diners are experiencing a decline in business. As the cost of goods and services rise, people are spending less at restaurants. People would rather spend their money elsewhere, such as traveling. Food quality and price tend to be more important to consumers than factors such as technology in the restaurant. Segments of the restaurant industry are competing in new ways. For example, casual restaurants have tried to compete with quick-service on price. However, each type needs to evaluate and push its strengths.
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Published April 21, 2017
An online version of a magazine devoted to news about the restaurant industry has an account of the fast or casual pizza business. The writer noted some slowdown in this industry, as three chains closed some stores down last year. Still, the writer noted growth on the part of three other chains. The two largest chains plan to open many new units this year. The writer focuses on a new chain owner, who started two years ago. He now has 15 units open, and expects to have thirty by the end of the year.
Key Takeaways:
- Instead of just growing more and more, getting better in the process of growing is in the plan.
- There will be ups and downs all throughout the process but determination must be kept to be successful
- There are many companies in competition because everyone likes pizza, but there is still room for success
“Anyone who thinks the fast-casual pizza market is dead hasn’t talked to Ray Wiley.”
Read more: http://www.nrn.com/fast-casual/fast-casual-pizza-chains-still-growing-despite-segment-struggles
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How Popeyes’ name change helped turn its fortunes
Popeyes Louisiana Kitchen was purchased for the largest earnings multiplier in modern history this February. Popeyes fetched such a large price because they cultivated an excellent brand. It used to be called Popeyes Chicken & Biscuits before Popeyes Louisiana Kitchen. The new name was put in place to imply credibility. It was almost named Popeyes New Orleans Kitchen. They wanted to associate the brand with the famous food tradition of Louisiana. A national television ad campaign was launched to highlight the new brand.
Key Takeaways:
“Popeyes’ comeback over that decade is a story of a brand that earned trust with its franchisees, and focused on branding, and a more efficient use of advertising.”
Read more: http://www.nrn.com/mergers-acquisitions/how-popeyes-name-change-helped-turn-its-fortunes
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