Industry insights- operations and acquisitions

We are always tracking chains that are growing, those that are being acquired and those that are closing units. In addition, where I sit at my desk I typically have CNBC on the TV.

I often wonder while watching the stock channel as well as industry publications regarding buyouts as to what qualifies them to perform this sort of surgery on restaurants. From my perspective some chains and some management groups are suited to certain types of operations. It's almost always a square peg in a round hole and yet it is tried over and over again. However if the goal is to slash and burn by selling off or closing units, or changing trade names and concept operations, and your company is public, this can at times make wall street happy.

As for operators, we have noticed some large multi-concept growth in chains that are not meeting customer standards trying to run different concepts. For example, If their DNA is full service casual without deep formal training in upscale operations, I have found that by and large they simply cannot run them to discriminating levels and visa versa for those who make the addition of quick service to their already casual or upscale concepts.

Industry insights- fast service, cheaper eats

We are reading in the media these days regarding the notion that fast service restaurants are out pacing full service restaurants regarding expansion of locations and unit volume increases versus those with higher check averages. Seems like old news to me.

It's been apparent with the ultra high cost of running full service locations and the squeeze put upon the broad mass of the population in the past 1-3 years, there isn't much choice if you are frequent diner who may go out to eat 5 plus times per week. Can an average person (let alone a family) really afford more than $15 per person for a meal multiple times per week, every week? I suppose some can. But new chain developments and those that are growing are decidedly quick/fast service, and have been.

April's top ten

Aprils Top Ten list of fastest growing concepts is now out. The winner, Nemos Seafood has a quick service seafood concept that more than doubled it's number of units within 4 months. Companies with less than 50 units and more than 3 are used for this study.

The Top Ten are:

1) Nemos Seafood
2) Shane's Rib Shack
3) Let's Dish!
4) Oceanaire Seafood Room
5) Hurricane Grill & Wings
6) Granite City Food & Brewery
7) Ohana Hawaiian BBQ
8) Jim 'N Nick's BAR-B-Q
9) Stevi B's Pizza
10) Crispers Fresh Salads and Such

Watch next week for our RCO2000 press release along with March's Restaurant Incubator Index results.