Is the "demise" of Casual-Dining premature?

Is the “demise” of Casual Dining premature?

             I just read another industry trade article regarding the decent of the fortunes of the casual dining segment, http://nrn.com/casual-dining/casual-dining-fights-survival, and there were some fairly gloomy statistics about its’ current state of affairs.  I’m not going to “pile on” any criticism or profess to have all the answers but will offer my personal view based upon a lifetime working within the food service industry and benefit of multiple hospitality degrees. 

            Permit us to review some history of the casual dining segments’ growth that may help all to understand some of the current challenges.  Expansion of the casual segment came during an equally impressive expansion of the US economy.  Growth was spurred-on by investors who were rightfully due a return on that investment.  Thus continued growth was seen as “good”, expected by stakeholders and the result of both investor and market pressures.

            Consumer expectations were a tad lower when casual dining was in its infancy as it was a new experience for some guests being able to “dine out” and be served was a thrill upon itself.  As their palettes’ matured, along with the industry, the consumer became somewhat jaded and operators learned they needed to avoid the veto-vote whereby someone of influence within the dining group changed the choice of dining destination based upon their particular menu likes and dis-likes.  This lead to menus, from distinctly different brands, to become somewhat homogeneous and were you to remove all “branding” from the menus the items would be easily transferable from one brand to another within their category e.g. steak house, casual Italian etc.

            As the market matured consumer’s palettes became more “worldly” which raised their expectations of the level of cuisine offered within the casual dining segment driving operators to upgrade their offerings across all menu categories to meet demand.  Simultaneously continued unit growth began to push the casual concept to the point of market saturation creating real estate and labor challenges that began the current decade-long sales erosion contributing to the current cycle of discounting and two dinners for $20 offers.  Another issue affecting the sales slump are the changes in life and work styles as consumers have less time to dine out.

            As the beginning of the football season might suggest some operators are returning to the fundamentals such as blocking and tackling to “turn-around” their respective teams.  Some are focusing on their core cuisine offerings, and return to scratch cooking where platforms will permit.  Others believe the need is to upgrade guest service and are rolling out training refreshment programs with staff and making all attempts to retain staff due to the cost of recruitment and training.  Understanding that the waste receptacle is not a “profit center” many managers are urging staffers to be aware of costs to reduce shrinkage.

            At one point in their history casual operators only need adhere to their growth model and managers follow their training to maintain their “numbers” for success.  The changes to the current economy and in the tastes and lifestyles of consumers are driving the casual market in a downward direction and it’s “adapt or perish” time for many operators.  We continuously review market trends to learn how to anticipate the next dining trend turn.  We recommend our clients query their guests regularly on how they can avoid the veto-vote and stay ahead of the next market curve.  To learn more about how we can assist your operation please contact us at www.themenuspring.com.