Restaurant success stories are as varied as the tastes of industry investors and consumers. While many models and menus have thrived amid the industry boom of 2015, here are key ways for operators of all types to keep their momentum growing.
1) STRIKE WHILE IT’S HOT
2015 may be a record year for restaurant sales, according to the National Restaurant Association’s (NRA) 2015 Industry Forecast. Strong cash flows and industry optimism create ripe conditions for making improvements, attracting investors, and entering new financial and geographic markets.
2) EXPAND YOUR BRAND GLOBALLY
As world populations and economies expand, so do the opportunities to succeed abroad. The Global Fast Food Restaurants Market Research Report from IBISWorld, March 2015, cites international expansion of U.S.-based chains as the primary driver of industry growth. Today, however, international markets represent less than 20% of U.S. quick-service brand revenue, underscoring the need to pursue growth with the right local partner, knowledge and resources.
3) INVEST IN YOUR BUSINESS AND PEOPLE
Attracting and serving more customers requires strategic capital expenditures and a dependable team. In 2015, more than half of operators are spending money on equipment, expansion or remodeling, based on the NRA’s Restaurant Performance Index. According to the Bank of America Merrill Lynch 2016 CFO Outlook, 52% of companies plan to add more full-time workers. To support employee hiring and retention, many are offering healthcare insurance, retirement funding, bonuses, wellness programs, education funding, flexible hours and other benefits.
Managing Director & Group Head
Bank of America Merrill Lynch
4) TAKE A STRATEGIC APPROACH
From IPOs to private equity involvement, operators are increasingly employing investment-banking strategies to drive business growth in the U.S. and abroad. Working with an advisor who can help you assess the latest industry and market developments – and your full range of strategic options – is key to successful growth planning and implementation.
5) STAY A STEP AHEAD
Customer palates and expectations are continually evolving. Investing in technology, such as mobile apps for faster delivery or digital menus for quicker orders, is how savvy operators set their restaurants apart.
- The success of the U.S. restaurant industry in 2015 creates a highly positive outlook.
- Many operators are implementing strategic growth plans, from global expansion to capital expenditures.
- Working with an experience advisor, especially one with both industry and local market expertise, helps you make informed decisions.