Shakeups in the C-suite, recasting for millennials and breakout menu items can keep the buzz centered on a brand. But often, it’s tapping into smaller, emerging currents that helps restaurants stay ahead. Here’s a look at trends from top chains impacting the industry now and in the future.
Deals from fast-food chains aren’t going away, but operators are being more clever about what they offer, with options such as McDonald’s Pick 2, Wendy’s 4 for $4 and the 5 for $4 deal at Burger King performing well.
LSR brands that are less than half franchised grew 9.3 percent; more-franchised chains grew 4.6 percent. The reason, says Technomic SVP Patrick Noone, is that corporate chains have more control to make desired changes.
Tabletop tech soon will be a must in casual dining, says Technomic President Darren Tristano. And chains are buying in; Buffalo Wild Wings—which vowed not to move forward with the tech until it matured—announced that it will proceed with its test.
Operators are adding technology such as express ordering and changing practices to increase efficiency and meet diners’ right-now needs. And it goes beyond millennials. “I don’t know anyone who likes waiting in line,” says Noone.
Top 500 newbies Fig & Olive and Rodizio Grill have strong wine programs, says Tristano. And brunch concepts such as Snooze, an A.M. Eatery are growing, in part because of booze. Successes include craft drinks (beyond beer) as well as local favorites.
As more mainstream chains add healthy menu options, some health-focused concepts are fizzling while others keep succeeding. Freshii and Sweetgreen, which aim to be lifestyle brands beyond food, are growing, while Native Foods Café is closing stores.
Technology that allows diners to skip the line can hurt the kitchen. And with a surge of orders from third-party platforms, it’s becoming harder to schedule labor during peak hours. So, operators are exploring commissaries, call centers and second lines to avoid throttling.
Operators looking to grow are finding an answer in fast casual. Cracker Barrel, for one, knew roadside opportunities were limited, so it launched biscuit sandwich shop Holler & Dash. Its fast casual sticks to a mainstay of the legacy brand—biscuits—but in a new form, hoping for loyalty to both.
Consumers want an experience, but that doesn’t mean a theme. Overly gimmicky chains such as Elephant Bar and Rainforest Cafe are on the decline.
Segments with historically large delivery businesses—Asian and pizza—will feel the impact of third-party delivery services broadening the competition.