Increases vs. Decreases. Some trends.

We have seen a significant closing of units during our last four-month period. For the past two years (since we began tracking), chains were increasing units by 2 to 1 margin. Optimism had a long run. Whether or not locations were succeeding by year over year sales comparisons or not, is not what we gauge here, only expansions and lack there of.

Now we are seeing closings that almost equal openings 1 for 1 for the first time since our tracking began. In some weeks we saw closings edging out openings by slight margins.

Other insights include a purview into quick/fast service locations that have been closing units lately as well as upscale and casual types, which have been steadily shedding units for about one year. Prior to this period, data revealed no end in sight for the quick/fast service segment.

Above all, most growth is still quick/fast service restaurants vs. casual/upscale by a unit-opening margin of 4 to 1.

Restaurant Survey Results

Here are the results of last weeks survey:

How did you first learn about the Restaurantchains.net newsletter?

51% of respondents are Restaurant Chain executives, senior managers or owners.

47% of respondents are manufacturers, vendors, suppliers or consultants.

2% of respondendents are students or teachers.

____________

If their was an option for a more enhanced newsletter would you want to receive it?

78% Yes

14% Maybe

6% I am not sure

2% No

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Would you consider paying a fee for a more enhanced newsletter?

49% No

47% Yes or it depends upon the cost.

2% Are you crazy?

2% I am not sure

Synopsis:

75% of those who want more information and are willing to pay a fee (to produce the extra work product) are suppliers, vendors and manufacturers.

20% of Restaurant Chain executives are willing to pay a fee for a more enhanced newsletter.

Considering the responses from the survey we are going to launch a more enhanced newsletter option in the near future.

Other issues:

We received alot of comments from chain executives regarding what best methods can they use to submit their company for inclusion in the newsletter.

What you can do:


Typically all news stories come from internal tracking by our researchers as a result of calling your company every four months. But if you have press release information you want to share or breaking news, please send it immediately to us in PDF format.

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Many of you expressed interest in exposing the audience to technology information, automation issues, new equipment and operational benefits.

If you have a press release, specific issues or something you think may be of interest to our readers, please send it to us in PDF format.

What we will do:

We are currently putting together a plan addressing these issues for inclusion and commentary.

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We've had this question numerous times:

Why can't I see all the alerts that are published each week?

Answer:

This alerts newsletter only highlights a fraction of alerts. Currently full weekly alerts reports are bundled as part of a subscription to Restaurantchains.net.

Soon we will offer the full alerts report as a stand alone product for purchase.

Restaurant Incubator Index for September and....

Septembers index is slightly up and we are showing a continual slight slowing from July thru September. In the past month of September the index increased by .08% (less than 1/10 of 1 percent). In the previous month of August the index increased by .1% (1/10 of 1 percent).

Clients have warned us about the slowdown. In addition, colleagues in other vertical industries have been complaining of severe slowdowns in almost all retail sectors of the economy in 2006. As you can see by the numbers the increase is far from zealous, but their still is one. As my father always told me: People gotta eat!

Also, many of you have asked how do I get my growth story into the weekly Restaurantchains.net alerts newsletter?

First it would help us to know as much about your company and concept as we can. Start with contacting the office here and asking for inclusion. At the same time help us to go over your company record with a staff researcher. You can begin the process by calling us at 914-591-4297 or sending an email to keith@restaurantchains.net.