A Good Economy Generates Increased Restaurant Traffic According to the US Census Bureau, total 2017 retail sales (unadjusted) for all food services and drinking places (NAICS code 722) were $676.63 billion, a 2.7% increase from 2016’s $658.57 billion. Total retail sales for all food services and drinking places during the first half of 2018 were $352.97 billion, compared to $336.63 billion for the first half of 2017, or a 4.9% increase. The BDO Restaurant Practice reported Q1 2018 same-store sales averaged a 0.9% increase, and then improved to +1.1% during Q2 2018. Fast-casual led the sectors, at +1.6%; followed by casual, +1.4%; QSR, +1.3%; and upscale casual, +0.7%.

Fewer Restaurants, But Improved Performance and Outlook The NPD Group reports a total of 660,755 US restaurants during spring 2018, which is 1% fewer than spring 2017. Restaurant chains’ total of 307,940 was essentially unchanged; QSRs, 357,766, or -1.0%; and full-service, 302,989, -1.0%. National Restaurant Association’s Restaurant Performance Index (RPI) for July 2018 was 101.1, declining 0.6%, with the Current Situation Index portion at 100.8, or -1.2%; however, 47% of restaurants reported same-store sales increased over July 2017. The RPI for August 2018 was 102.0, a 1.0% increase from July, with the Current Situation Index at 102.3, a 1.6% increase, the Expectations Index (six-month outlook) was 101.7, a 0.4% increase from July.

Americans Like Independent Restaurants According to The NPD Group, there were 325,815 independent restaurants in the US during spring 2018, a 2% decrease from spring 2017, or a total of 5,719 fewer units. Yelp’s Local Economic Outlook of February 2018 reported an increasing preference among Americans for independent restaurants, with the celebrity-chef owner trend as the primary driver. While Yelp’s overall customer rating for fast-food restaurants has decreased 16% from 2012 to 2017, independents’ rating has increased 7% during the same period.

A Top Industry According to Americans In Gallup’s August 2018 poll of Americans’ views of 25 US business industry sectors, computers were top- ranked, at 60% positive, and restaurants were a close second, at 58% positive, with their net positives, 50% and 48%, respectively. The other industry sectors in the top 5 were farming and agriculture, +38% net positive; travel, +37% net positive; and grocery industry, +35%, net positive. Not surprisingly, the healthcare industry, at -14% net positive; the pharmaceutical industry, -23% net positive; and the federal government, at -27% net positive, were the last 3 industries on the list.

Advertising Strategies Independent restaurants with chef ownership and based on his or her style and/or experience must remain aggressive in their markets to take advantage of consumers’ interest and by creating a local “celebrity” persona for the chef-owner.   With the 2018 holiday shopping season expected to break many records, independents should seriously consider cross-promoting with other nearby independent retailers with a coupon for a qualifying purchase good at the other business during the holidays. The Media Audit data on page 3 of the Profiler reveals some targeting opportunities, such as a dinner coupon for lunch patrons, many of whom will be white/blue collar workers and cross-promotions with the leisure-activities venues with the largest percentages/indices.

New Media Strategies Based on the positive results from the Yelp report on page 2 of the Profiler, independents should schedule quality time to update their Yelp (and other online listings) regularly and respond to all reviews, positive or negative, within 24 to 48 hours. Restaurants can benefit from Americans’ positive view of the restaurant industry, according to the Gallup survey, and utilize restaurants’ social media pages to be a catalyst/supporter of community events and organizations. Restaurants can contact local leisure-activities venues and/or clubs whose customers/ members are frequent restaurant diners and purchase ads on their Websites and/or social media pages, which should be very affordable and well-targeted.