Shelley Nelbert’s Post

This is a very nice review and narrative of the Q4 public SSS results. Thank you Jonathan Maze and Restaurant Business Online. A few follow on points. Looking at both Knapp Track and Black Box side by side (thank you Lauren Silberman for very helpful CY 22 and 23 view in DB Restaurant Industry commentary), one can certainly see the decline in casual dining SSS momentum at most brands throughout 2023. I'm particularly seeing no SSS momentum in the prime seasonality months of May-August. Could that be flat marketing or no product new news? Or has the market changed? Especially after the Darden commentary last week about "normalization" we need more perspective about what that means. Also, we should give credit to both brands in The Cheesecake Factory Bakery Group: Cheesecake Factory posted SSS at plus 2.5% and North Italia at plus 7.0%. This validates their operating standards and in time will demonstrate the value of the M&A. Texas Roadhouse was strong as usual, along with Maggiano's

How Will Price Wars Change Restaurants and Fast-Food Chains? The landscape of dining out is changing, with fast food no longer being the clear-cut choice for budget-conscious consumers. In places like New York City, prices for fast-food staples like a McDonald’s Big Mac meal or a Burger King Whopper combo have increased, reaching nearly $14. Read the full article here: https://lnkd.in/epw7qQ-b Neil Saunders "In one of our latest consumers surveys, 72.4% of consumers agreed with the statement that “fast food is now too expensive to be a ‘cheap’ treat”. This is one of the reasons why volumes in the QSR segment are under intense pressure. Some consumers have cut back, and many are thinking more carefully about where they dine." Richard Hernandez "In general, QSR’s are finally listening. You have lost your mid-end value customers. They may have accepted ok food quality for a while but now that prices increased and quality stayed the same, customers are not willing to pay for the quality because they don’t see the value."

The wine industry is the latest of late adopters.📠📼💯 An industry that’s has a decades long internal war of attrition on Screw-Caps vs Corks. It’s for hard for them to understand why canned wine make sense. 🤔 Nate Calvert points out why fast casual is winning. Quality and convenience, is what today’s consumer wants. Having a wine wine opener and a drinking vessel isn’t convenient.🐌 Canned Craft Beer, Liquid Death, RTDs, are proof that the right liquid can win in cans.📈🚀 Necessity is the mother of innovation. Wine has been losing the past 10 years, and maybe now is the time to embrace innovation.

Data shows that restaurant sales picked up momentum in November and December — and so did traffic. But experts aren't so sure the industry will sustain that momentum in the months ahead. Read more in Alicia Kelso's great analysis 👇 Nation's Restaurant News #restaurants #foodservice #sales #trends https://lnkd.in/eGwdGpsu

Many restaurant executives report that lower-income consumers are cutting back the most on dining out. Typically, quick-service brands benefit when the economy weakens as consumers move from higher-priced to lower-priced dining options. However, this time, even fast-food customers are choosing to eat more meals at home. Grocery stores are contributing to this trend by lowering prices. In April, retail food prices decreased by 0.2%, while fast-food prices increased by 0.4%. For example, Target announced price cuts on 5,000 items, and Walmart noted that their lower prices are attracting former restaurant customers to their grocery sections. Walmart CEO John Furner highlighted that families are finding it more economical to shop at Walmart than to dine out. In response, restaurant chains are emphasizing value in their marketing strategies. McDonald’s will introduce a $5 meal deal next month, Wendy’s has launched a $3 breakfast meal, and Jack in the Box plans to offer value deals this summer.

Zaxby's, a quick service restaurant (QSR) primarily known for its chicken-focused menu, differentiates itself from other QSRs in several key ways: Menu Focus: Zaxby's specializes in chicken offerings such as chicken fingers, wings, and sandwiches. Unlike some of its competitors like Chick-fil-A or KFC, Zaxby's offers a broader variety of sauces and customization options, allowing customers to personalize their meals. Casual Dining Experience: While Zaxby's is classified as a QSR, it provides a slightly different dining experience compared to traditional fast-food chains. Customers typically order at the counter but then have their food brought to their table. This semi-casual setup aims to enhance customer comfort and convenience. Southern Influence: Zaxby's originated in the Southern United States, and its menu reflects this heritage with Southern-inspired flavors and sides. This regional focus can appeal strongly to customers in the Southeast and those seeking a taste of Southern cuisine. Expansion and Market Presence: While Zaxby's has a strong presence in the Southeastern U.S., it has been expanding into new markets across the country. This expansion strategy aims to introduce its brand and menu to a wider audience, potentially competing with larger national chains. Customer Loyalty and Brand Recognition: Zaxby's has built a loyal customer base over the years, partly due to its emphasis on quality ingredients and customizable menu options. Its branding efforts, including sports sponsorships and community engagement, help enhance brand recognition and customer loyalty. Market Position: Compared to other QSRs like Chick-fil-A, KFC, Popeyes, and Buffalo Wild Wings, Zaxby's occupies a niche with its focus on chicken-based meals and a slightly elevated dining experience. This positioning allows it to attract customers looking for a variety of chicken dishes in a casual dining environment. Franchise Model: Zaxby's operates primarily through a franchise model, similar to many other successful QSR chains. This model allows for rapid expansion while leveraging local entrepreneurship and operational expertise. Overall, Zaxby's distinguishes itself in the QSR landscape through its menu offerings, semi-casual dining experience, regional appeal, and strategic market expansion. Its position in the market provides investors with a unique opportunity to capitalize on its brand strength and growth potential within the QSR industry.

William Blair’s recent survey pointed out something we're probably all feeling—people are getting tired of the rising costs of eating out. Higher menu prices, fees, and tips are pushing more guests to the drive-thru to avoid extra costs. And when it comes to digital ordering, we’re seeing more folks, especially under 60, getting comfortable with QR codes and kiosks, though many still prefer physical menus. One last thing worth mentioning: brand loyalty programs are gaining traction. 55% of people now say they’re using them, and for 41%, these programs actually influence where they eat. Loyalty seems to be making a real impact on dining decisions. Anyone else seeing these trends play out in your own restaurant habits?

This thought-provoking article highlights a significant trend: restaurants are contending with increased competition from grocers and c-stores. The landscape is evolving as consumers explore diverse dining options beyond traditional restaurant settings.   At Revelry, we’re dedicated to deepening our understanding of these trends to better serve our clients. With a focus on strategic insights and collaboration, we’re here to help navigate this changing landscape together.   Let’s engage in meaningful discussions about how your brand can adapt and thrive amidst these shifts.   Read the full article - link below.   #FoodserviceIndustry #MarketingInsights #StrategicAdaptation #CollaborativeApproach

Restaurant openings rose 6% nationally, with the industry overall poised to hit record annual sales of more than $1T. The 6% increase occurred from May 2023 to April 2024. The rise in that period was slightly slower than the annual growth from this time last year when openings were up 10%. Restaurants focusing on desserts, such as Italian ice, shaved ice or specialty cupcakes, as well as pop-ups drove the increase in openings. Dessert-focused openings increased 52% from May 2023 to April 2024 versus the same period the year prior. Pop-up shop openings increased 155%, fueled by a desire to test new food concepts with lower stakes and limited menus before rolling out a full menu. Although it's only June, it's already been a tumultuous year for those in the restaurant industry. Several major chains, including some familiar sit-down staples, have announced closures. Lauded independent restaurants in major cities across the country struggle with rising food and labor costs and the impact of hybrid work on foot traffic to once-bustling areas.And yet, the National Restaurant Association predicted in February that 2024 will yield approximately $1.1T in annual sales for the nation's restaurants, a 5.4% increase year-over-year.Those high sales might not trickle down to restaurateurs and their employees. A poll of association members found that only 27% of respondents expected to be more profitable in 2024 than they were last year, with high labor and food costs factoring into that calculation. #cre #commercialrealestate #Commercialrealestateadviser #commercialproperty #retailrealestate #restaurant

Circana just unveiled our highly anticipated U.S. Restaurant Ranking Report! 🍽️🎉 This report explores evolving consumer habits, performance trends, and industry leaders in a year marked by resilience and adaptation. Here are some key insights: 📈 Despite challenges, the U.S. restaurant industry saw a 5% increase in consumer spending in 2023, surpassing pre-pandemic levels by 12%! 🚀 Fast casual #restaurants emerged as stars of the show, with a staggering 9% spending growth. 🌅 Morning meals and snack dayparts saw significant growth, driving the success of the #QSR snack channel. 🏆 The top 50 U.S. restaurants, representing just 24% of all locations, command a whopping 61% share of industry spending! Click below to dive deeper into the rankings and discover notable newcomers and climbers in the U.S. #restaurantindustry! https://lnkd.in/eUGJsy5J