Archive for May, 2018

How Franchising Affects Restaurant Earnings Per Share and Revenue

Finding the ideal ratio of franchised to company-owned stores comes down to weighing the benefits and challenges of each path against an operation’s goals. Corporate locations increase revenue, as all sales go directly into the general coffers, but they come with lower margins and higher CAPEX costs. Franchising reduces owned revenue, replacing sales with increased cash flows from franchisee fees,…read more →Read more...

4 Reasons Restaurants Should Invest in a Corporate Communications Plan

Most business leaders recognize the importance of corporate communications, but very few companies actively invest in developing robust communication channels or in building a sustainable corporate culture. Done with intention and authenticity, communications becomes a strategic lever pulled to share a business’s values with the public. It’s as essential to a restaurant’s operation as its menu offerings and food suppliers….read more →Read more...

Q1 2018 Restaurant Mergers & Acquisitions Roundup

If we just looked at the numbers, we might conclude that restaurant mergers and acquisitions stagnated last year. But there were still some massive deals: notably Post Holding Inc.’s purchase of Bob Evans Farms for $1.5b, Restaurant Brands International’s (RBI) deal to acquire Popeyes Louisiana Kitchen for $1.8b, and Panera selling to JAB, parent company of Caribou Coffee and Peet’s…read more →Read more...

Domino’s Pizza Top 10 Innovations

Since 2013, Domino’s stock (DPZ) has risen from $60 per share to almost $250 per share, a staggering 316% increase. Innovation, especially when it comes to cutting-edge delivery technology, has become the number one driver for a company that started with one shop in Ann Arbor, Michigan in 1960 and has grown to more than 14,000 locations in 85 countries….read more →Read more...

Macroeconomic Trends and the UAE Food and Beverage Industry

After a sharp decline in oil prices produced several years of macroeconomic slowdown, the UAE is projected to continue to have modest economic growth in 2018 but recover to 3% growth next year. Despite the sluggish economy, the UAE food and beverage industry has experienced consistent growth over the past five years, and restaurants in the UAE are uniquely positioned…read more →Read more...

Technology’s Impact on Menu Merchandising

Once a fairly humble piece of paper, the menu has evolved to become one of the most complex components of one of the most complex businesses in the world. Restaurant menus are a convergence of nearly every other facet of the business: marketing, supply chain, interaction, design, fulfillment production, copywriting, merchandising, etc. When combined effectively, they form the single most…read more →Read more...

Applebee’s Latest News, Explained

Wednesday’s announcement that RMH Franchise, the country’s second-largest Applebee’s franchisee, is filing for bankruptcy protection offers more evidence that our regular hand-wringing over the state of the casual-dining market was on target. There are many reasons this segment of the foodservice industry has struggled over the past decade and a half, and the story of Applebee’s closings cycles illustrates many of them….read more →Read more...

How Online Food Delivery Will Change In the Next 5 Years

We’ve gone on record about digital delivery’s disruptive and ultimately transformative effect on the restaurant industry: as online food delivery and mobile ordering apps reshape consumer expectations for speed and convenience, operators have to keep pace with these demands or watch their sales drop. Our projections show that this market will continue to grow, at a pace almost four times…read more →Read more...

Restaurant Industry Adding Jobs, But Employment & Wage Growth Slowing Down

The April 2018 US jobs report revealed that job and wage growth are slowing down in the foodservice and hospitality sector, though they’re still growing faster than the private sector average. Below, we take a further look at where employment and wages stand as of April 2018, along with how they’ll shape the industry and impact restaurant companies, investors, and…read more →Read more...