1/ Last week I put a thread out about the performance of the Top 1,500 #restaurant chains. Today, our @Technomic much-anticipated top 500 chain report was issued, & it's worth digging a bit into the biggest of the chain market. The details are here: technomic.com/reports/indust…
2/ Several years ago, it was a big deal when none of the top 10 #restaurant chains in the US were full-service. This reflected the ongoing strength of #fastfood and #fastcasual.
With 2020's results, none of the top 20 restaurant chains are full service.
3/ Overall, the top 500 chain #restaurant sales decreased 8.2% in 2020 - not bad during a pandemic. Importantly, those limited service chains in the top 500 only decreaed 1.9% - a pretty good performance during a #pandemic.
4/ Chains are an increasingly big part of the #restaurant industry. Pre-pandemic, top 500 chains were 57% of the industry - with 2020's results, we see that the top 500 now represent 65% of all restaurant sales. That's an unprecedented 1 year gain.
5/ There was a huge range of performance. @Wingstop was the fastest growing chain last year, up 31% (!). #Eatertainment was hit hard and Dave & Busters saw the biggest decline, losing 70% of its revenue last year.
6/ @Mcdonalds eked out a small increase in sales, but the sheer size of their US operations remains massive. They represent ~13% of all sales in the Top 500 #restaurant report.
7/ Perhaps unsurprisingly, the limited service #chicken category was the best performing #menu segment in the top 500 #restaurant list. When you have strong performers like Chick-fil-A, Popeyes, Raising Cane's and Wingstop, it makes sense.
8/ Also, a note on the change in #restaurant units. Limited service chain outlets only lost a net of about 2% of total. Full service, for all the challenges, only lost a net of ~4% of locations. Unit count declines weren't nearly as dire as I've seen reported elsewhere.
10/END
We @Technomic are proud of our 55 year heritage in tracking the #restaurant and broader #foodservice industry, and we have chain results going back to the early 70s. We will continue to be the go-to resource for credible industry data, intelligence and insights.
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I've spent this morning on a number of calls and webinars discussing the #global#restaurant market and the outlook for 2020 and beyond. I thought I'd collect some thoughts on where we @Technomic see the business going.
1/
First, in North America: our midpoint scenario analysis for US #restaurants is a decline in consumer spending of 22% in 2020. Canada's outlook is a bit worse, with our midpoint expectations at -26% decline. #Delivery and #takeout has been key for operators in these markets.
2/
Latin America will be harder hit than N America; lockdowns have been significant and economies are generally weaker to begin with. We forecast the midpoint decline for #restaurants in Argentina, Colombia, Brazil, Chile and Mexico will be down ~40% in spending in 2020.
3/