Technomic Examines Performance of Top 100 Casual Dining Chains

However, there are signs of structural changes emerging within the casual dining segment. Consumer lifestyles and demands are shaping the look of casual dining, due in part to growing income divergence among Americans, according to new research published in Technomic's 2007 Top 100 Casual Dining Report.

Even as the affluent are increasing their disposable income, the rest of the population is experiencing stagnating incomes and increasing pocketbook pressures from the rising cost of necessary expenditures such as healthcare, health insurance, educational expenses, food and fuel. This divergence in household incomes also helps explain a growing split in the casual dining segment, where some consumers are trading down to fast-casual limited-service restaurants, whereas others are trading up to more upscale 'polished' casual dining alternatives.

But disposable income pressures are only part of the story. 'If there's any one prevailing theme we see throughout casual dining, it's the demand for convenience and value,' says Darren Tristano, Executive Vice President of Technomic Information Services. 'This is the common denominator that has driven much of the growth in the segment via successful curbside takeout and catering programs.' Tristano noted that takeout sales at casual-dining chains grew roughly 10 percent annually over the last three years.

Another key trend shaping casual dining is the ebb and flow of consumer awareness regarding healthy eating. Last year, concern over trans-fats took center stage, with several casual dining chains, including major players such as Olive Garden, Red Lobster and Chili's, racing to remove trans-fats from menu items.

Even as the largest casual dining chains turned in solid performances last year, it is interesting to note the exceptional growth of several smaller up-and-coming chains. Cheeseburger in Paradise topped this list, with a whopping 62 percent estimated growth in sales over 2005.




Logos, product and company names mentioned are the property of their respective owners.

Reader Comments:

Be the first to leave a comment for this article

Tweet