Can Casual Dining Buck the Trend?
Today, RestaurantChains.net released its quarterly list of Top 10 Growing Concepts Under 50 Units. The list is generated based on a concept’s percentage of growth over a 3-month period. Six of the chains were categorized as Fast Casual, three as Quick Service (also known as QSR), and one as Take-Out.
The exclusion of any casual dining or full-service restaurants, arguably the most successful segment over the past several decades, is noteworthy. It raises the question: can casual dining buck the trend? If so, how? Let’s take a look at today’s casual dining exceptions to determine any trends and similarities that may contribute to their successes.
For example, on August 9th, Nation’s Restaurant News reported Cooper’s Hawk Winery and Restaurant and Twin Peaks as two new “Hot Concepts” for 2010. Cooper’s Hawk of the Chicago area, founded by Tim McEnery, describes itself as an upscale casual eatery. Expanding primarily within the Chicagoland area, the concept plans to open its fifth location in Indianapolis within months. The new concept recently increased its financial stability by partnering with Karp Reilly LLC. Plans calls for 1 to 3 openings in 2011. NRN’s other “Hot Concept” is Twin Peaks. Randy DeWitt, the Twin Peaks founder whose 9 locations are quickly gaining in popularity throughout Texas, said he wanted to create a “concept that was just for guys.” He did just that, providing a full-service restaurant constructed as a log cabin, where customers are served quality food and cold beer by impressively dressed lumberjack-themed waitresses.
There are two common denominators to focus on, first, both Tim and Randy built concepts in a specialized segment that wasn’t over-saturated with similar concepts. Sure there was Hooters. But this is America, the country where people crave variety and choice. We put value on uniqueness and creativity. As consumers, we also enjoy the thrill of experiencing “the next cool thing”. That’s the feeling you get at these two concepts. When was the last time you ate in a log cabin with attractive waitresses down the road from your home or office? How often do you eat an affordable upscale meal accompanied by wine produced in-house? Probably, not often.
Secondly, look at geographic stability. Not that they escaped unscathed, but the South and Midwest fared exceptionally well during our “Great Recession” compared to the East and West Coasts. Lower costs of living and a reasonably healthy economy are two reasons restaurateurs have begun to focus on the South, particularly Texas. Concepts are weighing the economic stability of a market before diving deeper into the site selection process.
Casual dining has slowed, but it’s being improved, refined. The most innovative restaurateurs will succeed; established chains will have to adapt. All of this benefits the consumer.