DRNO - Daily Research News
News Article no. 3167
Published June 1 2004

 

 

 

The Rest of the Restaurants

Independents and small chain restaurants in the US are still struggling, while the bigger chains are 'coming back to life' after the worst slump in more than a decade, according to data and commentary just released by NPD Foodworld.

Independents and small chains account for 58% of spending and about half of all customer visits in the sector, but have fared worse than the larger groups during the weak economy, according to Michele Schmal, Vice President of product management for NPD Foodworld. 'The corner coffee shop or diner don't have the big dollars for marketing and expansion that the big chains have so it's a lot harder to survive in tough times. During weak economic times chains tend to take market share from independents'.

Independents make up more than half the 'brick and mortar' restaurants in the country (56%), according to the NPD Group's restaurant census database ReCount(r) - there are 294,000 independent restaurants in the US - while small chains make up a further 16%.

'Traditionally, customer satisfaction levels at the smaller restaurants are higher than at the large chain restaurants' says Schmal. 'Independents fill a niche market and there will always be successes in this segment, but we do expect large chains to continue to take more market share from this group'.

Small chains and independents account for 63% of all carry-out and 60% of meals eaten in or delivered to homes, and are particularly dominant in certain cuisines: for example seafood (75%), pasta (62%), beef entrees (67%) (excluding burgers), and Asian foods (96%). They also account for 87% of rice orders, 61% of side salads, 66% of non-fried vegetables and 85% of alcoholic beverages consumed in restaurants.

In regional terms, independents and small chains are strongest in the Northeast, with higher numbers of Italian restaurants, bagel shops and delis. In the West, Asian and Mexican restaurants are more popular. In the Southeast chains dominate - there are few independents.

The Group's web site is at www.npd.com

 

 
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