Recently we have seen in various trade magazines of some restaurant groups and chains who are focusing on small sandwiches and hamburger sliders. The defining moment is the reality that fast casual and family/casual restaurants are finally seeing the light regarding lower check averages.
In our blog we stated around a year go that we saw this as being the future. If we can pretened to have a crystal ball and look further into the future, we would bet the trend will continue for the next 1-2 years and perhaps longer.
We bet that chains that are of the casual nature will figuratively change their concepts in other ways as well.
We can also state that family casual chain growth has come to a near halt. Some chains are continuing, but the pace is very slow. We see this as a positive as chains work on store level P&L improvements by spending more on staffing, training and employing newer and faster technologies on stores already opened.
To reiterate another way;
This lends itself to the notion that operations is back! We suspect the talented GM's will increase their earning potential. There is and will be less demand in the store replication departments and more demand on store improvements.
Thursday, November 01, 2007
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