A recent study by foodservice consultants Technomic sheds new light on the difficulties facing many casual dining chain restaurants and how they can improve results. The research found that these restaurants face subtle and complex challenges that extend beyond the current economic climate, which has cut into consumers' discretionary spending. In fact, it could be argued that casual dining chains have become victims of their own success.
'For one, many chains have overbuilt units, with expansion rates averaging five percent over the past four years even as sales growth was slowing,' said Ron Paul, president of Technomic. 'Restaurant supply now exceeds consumer demand. On top of that, many consumers tell us that traditional casual dining chains lack differentiation, that 'they all look alike.''
Consumers may be cutting back on spending-and visits to casual dining restaurants-but where are they eating instead? At dinner time, the most important daypart for casual dining chains, 85 percent of surveyed consumers agreed that they are eating at home more often, either cooking, or more likely, sourcing prepared meal solutions from various food retailers. But other options are also popular-independent and fast-food restaurants are being used as substitutes for casual dining by over one third of respondents.
