A just-released ranking of restaurant chains by sales volume shows a changing of the guard underway, with giant quick-service concepts, long the dominant forces of the industry, being successfully challenged by concepts that emphasize innovation and quality rather than price.
In releasing the Top 500 ranking this week, Chicago researcher Technomic Inc. stressed the success fast-casual upstarts are having as a group in stealing sales from reigning behemoths. Fast-casual brands within the Top 500 finished 2014 with a 12.8 percent increase in sales over the prior year’s tally, an acceleration from the early years of the decade.
Three of the 15 top-finishing chains on the list fit into the fast-casual sector: Starbucks, which bumped out Subway to become the nation’s second-highest-grossing restaurant brand; Panera Bread Co., at Number 11; and Chipotle, the poster concept for the segment, at Number 15.
The segment’s “winning formula of high-quality menu items in upscale settings, with high-touch service at prices between fast food and casual dining,” will keep fast-casual driving much of the industry’s sales growth for years to come, said Technomic Executive Vice President Darren Tristano.
Also finishing strongly in the ranking were what Technomic has dubbed QSR plus, quick-service restaurants that have borrowed some of fast casuals’ tricks while keeping prices in the gap between fast-food and fast-casual. A standout example of that emerging segment, according to Technomic, is Chick-fil-A, Number Eight on this year’s list.
Greater emphasis on quality has also become a rallying cry for Domino’s (Number 13), Sonic Drive-Ins (Number 14) and Arby’s (Number 22).
Among the upsets noted by Technomic was the demotion of Subway, the industry’s largest chain in terms of number of restaurants, to the Number Three slot in the sales rankings. Technomic has attributed this slip to the rise of chains touting what they say is a sandwich of superior quality to what Subway sells, such as Firehouse Subs and Jersey Mike’s.
The highest-ranking full-service chains on the list were Applebee’s (Number 10) and Olive Garden (Number 16), both of which are in the midst of turnaround efforts.
McDonald’s, another brand trying to rejuvenate itself, continued to top the list with 2014 systemwide sales of almost triple the intake of Starbucks.
Rank | Chain Name | 2014 U.S. Sales ($000) | % Change | 2014 U.S. Units | % Change |
|---|---|---|---|---|---|
1. | McDonald's | $35,447,000 | -1.1% | 14,350 | 0.5% |
2. | Starbucks | 12,688,920* | 8.2 | 12,107 | 5.7 |
3. | Subway | 11,900,000* | -3.3 | 27,205* | 2.9 |
4. | Burger King | 8,640,100* | 1.6 | 7,142* | -0.2 |
5. | Wendy's | 8,512,821* | -0.4 | 5,750 | -0.7 |
6. | Taco Bell | 8,200,000 | 5.1 | 5,921 | 2.6 |
7. | Dunkin' Donuts | 7,176,400 | 6.4 | 8,082 | 5.3 |
8. | Chick-fil-A | 5,782,207 | 14.4 | 1,887 | 6.3 |
9. | Pizza Hut | 5,500,000 | -3.5 | 7,863 | 0.2 |
10. | Applebee's | 4,574,716* | 1.3 | 1,870 | 0.5 |
11. | Panera Bread/Saint Louis Bread Co. | 4,366,447 | 5.7 | 1,809 | 6.1 |
12. | KFC | 4,200,000 | 0.0 | 4,370 | -2.7 |
13. | Domino's | 4,124,936 | 9.2 | 5,067 | 1.6 |
14. | SONIC Drive-In | 4,099,447 | 5.0 | 3,517 | 0.0 |
15. | Chipotle Mexican Grill | 4,049,100* | 27.6 | 1,755 | 11.6 |
16. | Olive Garden | 3,618,000 | -1.3 | 838 | 1.2 |
17. | Chili's Grill & Bar | 3,541,937* | 1.7 | 1,266 | 0.0 |
18. | Buffalo Wild Wings | 3,242,042* | 16.7 | 1,052 | 7.6 |
19. | Little Caesars | 3,231,900* | 5.3 | 4,025* | 3.0 |
20. | Dairy Queen/Orange Julius | 3,208,147 | 7.5 | 4,517 | -0.5 |
21. | Jack in the Box | 3,191,233* | 2.4 | 2,253 | 0.0 |
22. | Arby's | 3,177,000 | 4.7 | 3,226 | -1.3 |
23. | IHOP | 3,013,738* | 6.6 | 1,579 | 1.0 |
24. | Papa John's | 2,673,854* | 7.6 | 3,250 | 1.3 |
25. | Outback Steakhouse | 2,491,000 | 1.3 | 753 | -2.0 |
26. | Denny's | $2,447,000 | 5.4% | 1,596 | -0.2% |
27. | Popeyes Louisiana Kitchen | 2,433,600 | 11.6 | 1,870 | 5.7 |
28. | Red Lobster | 2,426,400* | -0.5 | 670 | -1.2 |
29. | Panda Express | 2,279,740 | 14.6 | 1,729 | 7.6 |
30. | Cracker Barrel Old Country Store | 2,211,332 | 4.2 | 634 | 1.4 |
31. | Hardee's | 2,040,700* | 5.1 | 1,847 | 5.6 |
32. | Texas Roadhouse | 1,894,826* | 9.7 | 438 | 5.5 |
33. | Whataburger | 1,801,070 | 13.4 | 774 | 2.1 |
34. | Cheesecake Factory, The | 1,782,667* | 5.6 | 176 | 4.1 |
35. | Golden Corral | 1,734,519 | -3.4 | 500 | -0.2 |
36. | Jimmy John's Gourmet Sandwiches | 1,729,000* | 17.9 | 2,132 | 18.3 |
37. | TGI Fridays | 1,597,500* | -1.5 | 512 | -2.8 |
38. | Carl's Jr. | 1,500,800* | 4.1 | 1,188 | 2.7 |
39. | LongHorn Steakhouse | 1,441,000 | 9.4 | 473 | 6.3 |
40. | Red Robin Gourmet Burgers & Brews | 1,421,100* | 7.1 | 489 | 3.8 |
41. | Zaxby's | 1,257,529 | 17.2 | 660 | 10.6 |
42. | Ruby Tuesday | 1,218,800 | -4.0 | 693 | -5.8 |
43. | Five Guys Burgers and Fries | 1,208,296 | 6.2 | 1,163 | 3.8 |
44. | Culver's | 1,035,687 | 14.4 | 528 | 6.7 |
45. | Bojangles' Famous Chicken 'N Biscuits | 1,033,208 | 12.0 | 619 | 7.8 |
46. | Waffle House | 974,700* | 2.5 | 1,720* | 1.2 |
47. | Bob Evans | 962,713 | -0.4 | 564 | 0.4 |
48. | Steak n Shake | 943,000* | 6.7 | 541 | 2.9 |
49. | P.F. Chang's China Bistro | 883,046 | -2.5 | 213 | 0.5 |
50. | Church's Chicken | 861,347 | 0.7 | 1,168 | -3.0 |
51. | Hooters | $848,800* | 2.5% | 367* | 1.9% |
52. | BJ's Restaurant & Brewhouse | 845,569 | 9.1 | 156 | 6.8 |
53. | Papa Murphy's Pizza | 843,000* | 8.1 | 1,433 | 2.7 |
54. | El Pollo Loco | 729,516 | 10.9 | 415 | 3.5 |
55. | Carrabba's Italian Grill | 714,000 | 0.6 | 243 | 1.3 |
56. | California Pizza Kitchen | 713,900* | 3.7 | 219 | 1.9 |
57. | Logan's Roadhouse | 713,007* | 0.7 | 261 | 0.8 |
58. | Qdoba Mexican Grill | 684,046* | 12.5 | 637 | 3.2 |
59. | Cheddar's Casual Cafe | 668,030 | 8.9 | 157 | 4.7 |
60. | Krispy Kreme | 659,593 | 6.1 | 278 | 9.4 |
61. | Del Taco | 655,537 | 5.3 | 547 | 0.0 |
62. | Tim Hortons | 636,500* | 8.0 | 884 | 2.9 |
63. | Perkins Restaurant & Bakery | 623,600* | -0.5 | 391 | 0.0 |
64. | Wingstop | 622,400* | 15.2 | 658 | 11.0 |
65. | Bonefish Grill | 622,000 | 8.6 | 206 | 6.2 |
66. | Long John Silver's | 618,800* | -1.0 | 1,225* | -2.0 |
67. | Jason's Deli | 617,300 | 4.0 | 253 | 2.0 |
68. | Boston Market | 606,200* | 0.9 | 455 | -1.1 |
69. | In-N-Out Burger | 584,600* | 4.7 | 301 | 3.4 |
70. | Moe's Southwest Grill | 571,314 | 14.7 | 581 | 10.0 |
71. | Ruth's Chris Steak House | 556,437* | 4.7 | 123 | 1.7 |
72. | Firehouse Subs | 552,407 | 24.7 | 850 | 17.7 |
73. | Baskin-Robbins | 544,000 | 5.9 | 2,484 | 0.7 |
74. | White Castle | 529,300* | -0.8 | 391 | -2.0 |
75. | Old Country Buffet/HomeTown Buffet | 526,000* | -3.0 | 193 | -5.4 |
76. | Jersey Mike's Subs | $523,317 | 30.2% | 857 | 20.2% |
77. | O'Charley's | 517,800 | 2.9 | 214 | 0.5 |
78. | Jamba Juice | 512,737* | -0.4 | 806 | 0.4 |
79. | Einstein Bros. Bagels | 508,900* | 5.7 | 755* | 4.9 |
80. | McAlister's Deli | 504,500 | 9.9 | 337 | 5.0 |
81. | Captain D's Seafood Kitchen | 499,949 | 4.5 | 511 | -0.2 |
82. | Famous Dave's | 494,707* | -0.1 | 186 | -4.1 |
83. | Auntie Anne's | 493,500* | 10.3 | 1,190 | 10.3 |
84. | Quiznos | 488,200* | -19.6 | 1,200* | -16.6 |
85. | Noodles & Company | 454,844 | 11.3 | 439 | 15.5 |
86. | Checkers Drive-In Restaurants | 450,000* | 5.3 | 507 | 2.8 |
87. | Joe's Crab Shack | 432,969 | -3.3 | 139 | 2.2 |
88. | Dickey's Barbecue Pit | 426,200* | 28.8 | 474 | 28.1 |
89. | Yard House | 425,600 | 15.0 | 56 | 16.7 |
90. | CiCi's Pizza | 419,000* | -10.3 | 434 | -9.0 |
91. | Krystal Company | 408,257 | 1.1 | 355 | 1.7 |
92. | Round Table Pizza | 399,500 | 5.7 | 435 | -0.2 |
93. | Maggiano's Little Italy | 391,200 | 4.0 | 49 | 8.9 |
94. | On The Border Mexican Grill & Cantina | 390,100* | 3.3 | 148 | 0.7 |
95. | Friendly's | 384,000 | -5.7 | 280 | -17.4 |
96. | Raising Cane's Chicken Fingers | 381,200* | 20.1 | 215 | 21.5 |
97. | Capital Grille, The | 380,000 | 9.3 | 55 | 5.8 |
98. | Cold Stone Creamery | 366,514 | -0.7 | 945 | -4.5 |
99. | Chuck E. Cheese's | 365,000* | -4.9 | 545* | 0.6 |
100. | Corner Bakery Cafe | 355,675 | 10.1 | 184 | 15.7 |
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