2. The Industry’s Big Numbers
According to US Census Bureau data, total adjusted 2016 revenues for food services and drinking places (NAICS code 722) were $ billion, a 5.5% increase over 2015’s $ billion.
The NPD Group reported that there were 2% fewer US commercial restaurant locations during 2016, or a total of 620,807. This resulted in the lowest restaurant density (units per million population) of the past 10 years, or 1,924, during fall 2016.
The National Restaurant Association’s (NRA) 2017 industry sales projection is $798.7 billion, which includes more sub- sectors than the US Census Bureau numbers.

3. Performance Volatility
The NRA’s Restaurant Performance Index (RPI) has been quite volatile since April 2016, when the RPI was It then decreased to 99.7 for August 2016 before rebounding to for December 2016 and increasing to for March 2017.
For the same months, the Current Situation Index moved from to to 99.5 and while the Expectations Index was 101.0, 100.6, and 102.2, respectively. (More than 100 = expansion; less than 100 = contraction.)
TDn2K reports that July 2017 comp sales at US restaurants decreased 2.8%, and comp traffic decreased 4.7%. Only 12 markets, or 6%, had positive market sales.

4. Some Good News for Independents
Independent restaurants have also experienced the contraction in the industry, with a 4% decrease in the total restaurant unit count from Q to Q1 2017, resulting in a total of 323,456.
The first of the good news, however, is that there was just a 3% decrease in the number of Q visits to independent restaurants. Since visits decreased less than the restaurant count, some independents must be increasing revenues.
The second bit of good news is the increase in the number of micro-chains, or independent restaurants with 3–19 units. Another measure of this success is a 5% increase in total food and goods spending with broadline distributors during Q

5. Many Restaurants Finding Favor with Patrons
According to research from CHDExpert, there were more than 2,700 restaurants with more than $5 million in annual gross revenues as of February 2017, which CHDExpert designated as “America’s Top-Grossing Restaurants.”
Of these 2,700+ restaurants, 66% were chains and 34% were independents. Their average unit sales volume was $7.55 million, which is almost 10x more than the national average of $790,000.
The top five US chains that gross more than $5 million per their average unit were The Cheesecake Factory, Olive Garden, BJs Restaurant/Brewhouse, Yard House and Maggiano’s Little Italy.

6. Competing with More Dining Options
According to research from Acosta, total US diners spent $ during an average month of 2016 on food prepared outside the home, a significant increase from 2015’s $
Millennial and Gen X diners and diners with children spent the highest portion of their total foodservice dollars on food prepared outside the home, or 42.1%, 34.7% and 35.2%, respectively.
Although the largest percentage of total US diners (82%) ate in a restaurant’s dining area during 2016, that percentage didn’t change from 2015, while “off-premise” options increased, such as ordering carryout or delivery from a restaurant.

7. Advertising Strategies
Restaurants may improve traffic and repeat business by offering guests a discount/coupon (available on mobile devices, preferrably) at breakfast, lunch and dinner for a qualifying breakfast, lunch or dinner during the next two weeks.
Independents that are adding more units to become local/regional micro-chains (3–19 units) should be excellent prospects for TV advertising, as they are targeting a larger geographic area. Suggest grand-opening promotions of new locations with discounts.
To capture the increasing market for “off- premise” dining/eating, virtually every restaurant of any size must add at least carryout, with curbside delivery, and seriously consider delivery service, and then aggressively advertising these services.

8. New Media Strategies
(Refer to Media Group Online’s Restaurants: Digital Media and Technology Profiler from its series of Restaurant Profilers for more detailed information and new media strategies.)
Ordering kiosks (or the use of artificial intelligence) and the potential for more automation/robotic devices in the food preparation area are two tech trends that restaurants must examine closely, and then highlight these innovations in social media.
Restaurants that can create a “dining community” will maximize traffic and repeat visits. It is vital to respond to reviews quickly, re-share food photos and post new menu items. Communicate regularly with campaigns and daily social media posts.