RESTAURANTS GOS-043
A GLOBAL OUTLOOK, SEPTEMBER 2008
CONTENTS
1. Overview 1
Restaurants: A Major Industry with Diverse Segments 1
What Exactly is Cooking in the Restaurant Industry? 2
Table 1: Global Market for US-based Restaurant Chains (2005):
Percentage Breakdown of Sales by Category - Burgers, Pizza,
Casual Dining, Chicken, Family Dining, Coffee/Snacks,
Sandwiches, and Others 2
Leading Global Players in the Restaurant Sector 2
2. Leading Quick Service Companies 3
3. Growth Factors 3
Rise in Preference for Eating Out and Take Away Foods Drives
the Sector 3
Exotic Flavors Excite the Consumer 3
Table 2: Global Market for Leading US Based
Quick-Service/Limited-Service Restaurants (2005): Outlets in
Thousands for McDonald's, Subway, Pizza Hut, KFC, Burger
King, Domino's, Taco Bell, Wendy's, Dairy Queen, 7-Eleven,
Dunkin' Donuts, and Others 4
4. Trends and Issues 4
Restaurants: Remarkable Growth in Tune with the Times 4
Generation Y’s Influence and Demand on the Restaurant Sector 4
Healthy Eating Catches Up with the Restaurant Sector 5
Strategies 5
Techno-Savvy Restaurants Try to Offer Better Service 5
Restaurants Dish Out Working Women-Friendly Offerings 5
Global Food Industry and Consumer Spending 5
What is “In” and What is “In Store”? 6
Fast Food - Growing Fast 6
Bright Outlook for Fast Food 6
Full-Service Restaurant Segment Preferred by Middle Aged
Population 6
Aging and Growing World Population Augurs Wellfor the
Restaurant Sector 7
5. Mergers And Acquisitions 7
6. Strategic Corporate Developments 26
7. Outlook 33
8. A North American Perspective 34
8a. United States 34
Overview 34
Restaurant Industry, the Nation’s Economic Powerhouse 34
Table 3: Restaurants Market in the US (2006 & 2007):
Percentage Breakdown of Value Sales by Region - Southeast,
Midwest, West, Mid-Atlantic, Southwest, and New England 34
Table 4: Restaurant Market in the US (2006): Number of
Restaurant Chains and Independent Restaurants 35
Table 5: Leading Hotel and Restaurant Chains in the US
(2005): System-wide Foodservice Sales in US$ Million for
McDonald's, Burger King, Wendy's, Subway, Taco Bell, Aramark
Global Food & Support Services, Pizza Hut, KFC, Starbucks
Coffee, Applebee's Neighborhood Grill & Bar, Dunkin' Donuts,
and Domino's Pizza 35
Table 6: Leading Restaurants in the US (2005): Food and
Beverage Sales in US$ Million for Tavern on the Green,
Hilltop Steakhouse, Old Ebbitt Grill, Bob Chinn's Crab House,
Joe's Seafood, The Manor, The Milleridge Inn, Phillips
Harborplace, Venus de Milo Restaurant, and Zehnder's of
Frankenmuth 35
Table 7: Leading Restaurants in the US (2005):
Alcoholic-Beverage Sales in US$ Million for Tao Asian Bistro,
Old Ebbitt Grill, Gibsons Bar Steakhouse, Gibsons Bar
Steakhouse, Abe & Louie's, Hugo's Frog Bar & Fish House,
Coffee Shop, California Grill, Portland City Grill, and Harry
Carey's Restaurant 36
Table 8: Leading Restaurant Chains in the US (2005):
Marketing Spending in US$ Million for McDonald's, Wendy's,
Subway, Burger King, KFC, Taco Bell, Pizza Hut, Applebee's,
Domino's, and Chili's 36
Table 9: US Advertising Expenditure of Restaurant and Fast
Food Sector by Media: Consumer Magazine, Sunday Magazine,
Local Newspaper, National Newspaper, Outdoor, Network TV,
Spot TV, Syndicate TV, Cable TV Networks, Network Radio, and
National Spot Radio Independently Analyzed with Annual Sales
Figures in US$ Million for Years 2003 through 2008 37
Table 10: Restaurant Market in the US (2006): Percentage
Breakdown of Advertisement Expenditure by Category - Quick
Service Restaurants, Casual Dining, Pizza, and Others 37
Characteristics of the US Restaurant Industry 37
Growth Drivers 38
US Restaurant Industry Parameters 38
Market Trends 38
On the Go 38
Increasing Emphasis on Design and Décor 39
Summer Travel and Tourism Season Boosts Restaurant Sales 39
Investment on IT 39
Foodservice Outlets 39
Consumer Behavior 39
Enhancing the Consumer’s Experience 39
Mood Matters 40
Consumer Spending Behavior based on Age 40
Consumer Spending Behavior based on Household 40
Consumer Spending Behavior based on Household Composition 40
Consumer Spending Behavior based on Wage Earners 40
Consumer Spending Behavior based on Occupation 40
Consumer Spending Behavior based on Income 40
Legislative Outlook 40
Outlook 41
Restaurant Industry - Segment Wise Perspective 41
The Fast Food Segment 41
Market Trends and Factors 41
The Quick Service Segment 41
Growth Drivers 41
Market Trends 41
Competitive Factors 42
Shortage of Labor 42
Employee Retention 42
Outlook 42
Table 11: Quick Service Restaurant Preference in the US
(2005): Percentage Breakdown of Survey by Category - Close
to Home, Passing By, Close to Work, Service, and Food 42
The Full Service Segment 43
Market Trends 43
Customizing Customer Service 43
Outlook 43
Table 12: Leading Full-Service Restaurant Chains in the US
(2005): Sales in US$ Million for Applebee's, Chili's,
Outback, TGI Friday's, Red Lobster, Olive Garden, Denny's,
IHOP, Cracker Barrel, Ruby Tuesday, Golden Corral, The
Cheesecake Factory, Bob Evans, HomeTown Buffet/Old Country
Buffet, and Hooters 44
Table 13: US Full Service Restaurants’ Food Purchases -
Family Style, Varied Menu, Italian, Casual Steak,
Fish/Seafood, Mexican, Family Steak, Others Independently
Analyzed with Annual Sales Figures in US$ Billion for Years
2003 through 2008 45
Ethnic Goes Mainstream 45
“Deli” Segment 45
Supermarkets 46
Mobile Catering Segment 46
Non-Store Retail Segment 46
Casual Dining Restaurants Chains 46
Overview 46
Table 14: US Casual Dining Restaurant Chain Sales by Menu -
Varied Menu, Steak, Italian, Seafood, Mexican, Asian, BBQ,
Multiple Concepts, and Other Specialty Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2003 through 2008 47
Table 15: Casual Dining Restaurant Chains in the US (2005):
Number of Stores by Menu - Varied Menu, Steak, Italian,
Seafood, Mexican, Asian, BBQ, Multiple Concepts, and Other
Specialty 47
Outlook 47
Table 16: Select Casual Dining Restaurants Chains in the US
(2005): Sales in US$ Million for Applebee's Neighborhood
Grill & Bar, Chili's Bar & Grill, TGI Friday's, Ruby
Tuesday, The Cheesecake Factory, Hooters, Red Robin Gourmet
Burgers, Bennigan's Grill & Tavern, Buffalo Wild Wings Grill
& Bar, and O'Charley's 48
Table 17: Fastest Growing Casual Dining Restaurant Chains in
the US (2005 & 2006): Sales in US$ ‘000 for Buffalo Wild
Wings Grill & Bar, Famous Dave's, Bonefish Grill, BJ's
Restaurant & Brewery, Fleming's Prime Steakhouse & Wine Bar,
Bubba Gump Shrimp Co., Cheeseburger in Paradise, Yard House,
Abuelo's Mexican Food Embassy, and Boston’s The Gourmet
Pizza 49
Table 18: Casual-Dining Restaurant in the US (2005):
Percentage Breakdown of Survey by Reasons for Visiting - Fun
Evening With Friends, Special Occasion, Didn't Want to cook
on Weekday, Lunch with Co-Worker/Friend, Routine Weekend
Dining, Craving for Specific Food, Date/ Romantic Occasion,
and None of the Above/Don't Know 49
Table 19: Casual-Dining Restaurant Goers' in the US (2005):
Percentage Breakdown of Rating of Restaurant by Attribute -
Freshness of Food, Taste/Flavor of Food,
Friendliness/Courtesy, Attentiveness of Service, Appearance
of Food, Value for Money, Reasonable Prices, and Others 50
Full Service and Fast Restaurant Chains 50
Outlook 50
Limited Service Restaurant Chains 50
Table 20: Limited-Service Restaurant Chains in the US (2005):
Sales in US$ Million for McDonald's, KFC, Burger King, Pizza
Hut, Subway, Wendy's, Starbucks, Taco Bell, Domino's, Dunkin'
Donuts, Tim Hortons, Sonic, Arby's, Jack in the Box, and
Dairy Queen 51
Table 21: US Limited Service Restaurant Chain Sales by Menu -
Hamburger, Pizza, Chicken, Other Sandwich, Mexican, Ice
Cream/Yogurt, Donut, Cafeteria/ Buffet, Seafood, and Other
Specialty Independently Analyzed with Annual Sales Figures in
US$ Billion for Years 2003 through 2008 51
Mid Scale Restaurant Chains 52
Table 22: US Mid Scale Restaurant Chain Sales by Menu -
Family Style, Family Steak, and Other Specialty Independently
Analyzed with Annual Sales Figures in US$ Million for Years
2003 through 2008 52
Table 23: Mid Scale Restaurant Chains in the US (2005):
Number of Stores by Menu - Family Style, Family Steak, and
Other Specialty 52
Family Restaurants Chain 52
Table 24: Family Restaurant Chains in the US (2005): Number
of Units for Huddle House, Village Inn, Country Kitchen,
Cocos, Bakers Square, Sonny's Real Pit Bar B Q, Carrows,
Shari's Restaurants, and Eat'n Park 53
Table 25: Family Restaurants in the US (2005): Sales in US$
Billion for Applebee's, Chili's Grill & Bar, Outback
Steakhouse, Olive Garden, Red Lobster, Denny's, IHOP, TGI
Friday's, Cracker Barrel, and Golden Corral 53
Sandwich Restaurant Chains 53
Outlook 53
Table 26: Sandwich Restaurant Chains in the US (2005):
Percentage Breakdown of Value Sales for McDonald's, Burger
King, Wendy's, Subway, Taco Bell, Sonic Drive-In, Arby's,
Jack in the Box, Dairy Queen, Hardee's, and Others 54
Table 27: Sandwich Restaurant Chains in the US (2005):
Average Sales Per Unit in US$ ‘000 for McDonald's, Culver's
Frozen Custard, Chipotle Mexican Grill/Chipotle,
Whataburger, White Castle, Jack in the Box, Wendy's, Del
Taco, Carl's Jr., Burger King, and Taco Bell 54
Table 28: Sandwich Restaurant Chains in the US (2005):
Number of Units for Blimpie Subs & Salads, A&W Restaurants,
Togo's Eatery, Taco John's, Checkers Drive-In, Rally's
Hamburgers, Wienerschnitzel, Chipotle, Baja Fresh Mexican
Grill, Culver's Frozen Custard, In-N-Out Burger, Taco
Cabana, and Jason’s Deli 55
Table 29: Sandwich Restaurant Chains in the US (2006):
System-Wide Sales in US$ Million for Krystal, Jason's Deli,
Checkers, Baja Fresh Mexican Grill, Blimpie Subs & Salads,
Rally's Hamburgers, Taco John's, Qdoba Mexican Grill,
McAlister's Deli, and Wienerschnitzel 55
Contract Foodservice Chains 55
Table 30: Contract Food Service Chains in the US (2005):
Number of Outlets for Canteen Services, Aramark Global
Food/Leisure Services, Sodexho Corporate Services, and Others 56
Pizza Restaurant Chains 56
Table 31: Pizza Restaurant Chains in the US (2005): Sales in
US$ Million for Pizza Hut, Domino's Pizza, Papa John's,
Little Caesars, Chuck E. Cheese Pizza, CiCi's Pizza, Papa
Murphy's Take 'N' Bake Pizza, Round Table Pizza, Godfather's
Pizza, and Hungry
Howie's Pizza & Subs 56
Table 32: Pizza Chains in the US (2005 & 2006): Number of
Units for Pizza Hut, Domino's Pizza, Papa John's Pizza,
Little Caesars Pizza, CiCi's Pizza, and Chuck E. Cheese's 57
Bakery-Café/Sandwich Restaurants 57
Table 33: Bakery-Cafe Restaurant Chain in the US (2005):
Number of Units for Einstein Bros. Bagels, Bruegger's Bagel
Bakery, Au Bon Pain, and Corner Bakery 57
Table 34: Bakery-Café/Sandwich Restaurant Chains in the US
(2005): Sales in US$ Million for Subway, Arby's, Panera
Bread, Quiznos Sub, Einstein Bros. Bagels, Jason's Deli,
Blimpie, Au Bon Pain, Wienerschnitzel, Schlotzsky's,
McAlister's Deli, Corner Bakery Café, Atlanta Bread Company
Bakery Café, Jimmy John's Gourmet Subs, and Togo's 58
Table 35: Sandwich Chains in the US (2005): Number of
Domestic Outlets for Subway, McDonald's, Burger King, Taco
Bell, Wendy's, Dairy Queen, Arby's, Sonic Drive-In, Hardees,
Jack in the Box, Quiznos Sub, Carls Jr, Schlotzsky's Deli,
Whataburger, Krystal, and Del Taco 58
Dinner House Chains 58
Table 36: Dinnerhouse Chain Restaurants in the US (2005):
System-wide Foodservice Sales in US$ Million for Applebee's
Neighborhood Grill & Bar, Chili's Grill & Bar, Outback
Steakhouse, Olive Garden, Red Lobster, TGI Friday's, Ruby
Tuesday, The Cheesecake Factory, Texas Roadhouse, Red Robin
Gourmet Burgers & Spirits, Romano's Macaroni Grill, P.F.
Changs China Bistro, Longhorn Steakhouse, Buffalo Wild Wings
Grill & Bar, and Bennigan's Irish American Grill & Tavern 59
Table 37: Dinnerhouse Chain Restaurants in the US (2005):
Sales Per Unit in US$ ‘000 for The Cheesecake Factory, P.F.
Chang's China Bistro, Olive Garden, Texas Roadhouse, Red
Lobster, TGI Friday's, Romano's Macaroni Grill, Outback
Steakhouse, Logan's Roadhouse, and Chili's Grill & Bar 60
Table 38: Dinnerhouse Chain Restaurants in the US (2005):
Number of Domestic Units for Applebee's Neighborhood Grill &
Bar, Chili's Grill & Bar, Ruby Tuesday, Outback Steakhouse,
Red Lobster, Olive Garden, TGI Friday's, Hooters, Buffalo
Wild Wings Grill & Bar, and Red Gourmet Robin Burgers &
Spirits 60
Seafood Restaurants 60
Table 39: Seafood Restaurants Chains in the US (2005): Sales
in US$ Million for Red Lobster, Long John Silver's, Captain
D's, Joe's Crab Shack, McCormick & Schmick's, Bonefish Grill,
Landry's Seafood House, Legal Sea Foods, Pappadeaux Seafood
Kitchen, and Bubba Gump Shrimp 61
Steak/Barbecue Restaurants 61
Table 40: Steak/Barbecue Restaurants Chains in the US (2005):
Sales in US$ Million for Outback Steakhouse; Texas Roadhouse;
LongHorn Steakhouse; Lone Star Steakhouse & Saloon; Tony
Roma's; Ruth's Chris Steak House; Famous Dave's Legendary Pit
Bar-B-Que; Morton's, The Steakhouse; Sonny's Real Pit
Bar-B-Q; and Smokey Bones Barbeque & Grill 61
Family Dining Restaurant Chains 61
Table 41: Steak/Barbecue Restaurants Chains in the US (2005):
Sales in US$ Million for Outback Steakhouse; Texas Roadhouse;
LongHorn Steakhouse; Lone Star Steakhouse & Saloon; Tony
Roma's; Ruth's Chris Steak House; Famous Dave's Legendary Pit
Bar-B-Que; Morton's, The Steakhouse; Sonny's Real Pit
Bar-B-Q; and Smokey Bones Barbeque & Grill 62
Table 42: Family Dining Restaurant Chains in the US (2006):
Number of Units for Huddle House, Shoney's, Big Boy
Restaurant & Bakery, Village Inn, Bakers Square, Sonny's Real
Pit Bar-B-Q, Coco's, and Eat ‘n Park 62
Hamburger Restaurant Chains 62
Table 43: Hamburger Restaurant Chains in the US (2005): Sales
in US$ Million for McDonald's, Burger King, Wendy's, Sonic
Drive-In, Jack in the Box, Hardee's, Carl's Jr., Whataburger,
Checkers Drive-In/Rally's Hamburgers, and White Castle 63
Metropolitan Restaurants 63
Buffet/Cafeteria Restaurant Chains 63
Table 44: Buffet Restaurant Chains in the US (2006):
System-wide Sales in US$ Million for Golden Corral, Ryan's
Grill Buffet & Bakery, HomeTown Buffet, and Old Country
Buffet 63
Chicken Restaurant Chains 63
Table 45: Chicken Restaurant Chains in the US (2005): Sales
in US$ Million for KFC, Chick-fil-A, Popeyes Chicken &
Biscuits, Church's Chicken, Boston Market, El Pollo Loco,
Bojangles' Famous Chicken 'n Biscuits, Chester's, Zaxby's,
and Pollo Tropical 64
Table 46: Chicken Restaurant Chains in the US (2005): Number
of Domestic Units for KFC, Popeyes Chicken & Biscuits,
Chester's, Chick-fil-A, Church's Chicken, Boston Market,
Bojangles' Famous Chicken 'n Biscuits, and El Polio Loco 64
Mexican Restaurant Chains in the US 64
Table 47: Mexican (Limited Service) Restaurants Chains in the
US (2005): Sales in US$ Million for Taco Bell, Chipotle, Del
Taco, Baja Fresh Mexican Grill, Taco John's, Taco Cabana,
Moe's Southwest Grill, Qdoba Mexican Grill, Taco Time, Taco
Bueno, Rubio's Fresh Mexican Grill, La Salsa Fresh Mexican
Grill, Taco Del Mar, Wahoo's Fish Tacos, and Taco Mayo 65
Table 48: Mexican (Full Service) Restaurants Chains in the US
(2005): Sales in US$ Million for On the Border Mexican Grill
& Cantina, Chevys Fresh Mex, Don Pablo's, El Torito, El Chico
Café, Acapulco Mexican Restaurant Y Cantina, Abuelo's Mexican
Food Embassy, Carlos O'Kelly's Mexican Café, Azteca Mexican
Restaurant, and Casa Ole 65
Asian Restaurant Chains in the US 65
Table 49: Asian (Full service) Restaurants Chains in the US
(2005): Sales in US$ Million for P.F. Chang's China Bistro,
Benihana, Roy's, Nobu, and bd's Mongolian Grill 66
Coffee/Tea Restaurant Chains 66
Table 50: Coffee/Tea Restaurants Chains in the US (2005):
Sales in US$ Million for Starbucks, Caribou Coffee, Peet's
Coffee & Tea, The Coffee Bean & Tea Leaf, The Coffee Beanery,
and Tully's Coffee 66
Snack Restaurants Chains 66
Table 51: Snack Restaurants Chains in the US (2005):
System-wide Foodservice Sales in US$ Million for Dunkin'
Donuts, Krispy Kreme Doughnuts, and Baskin-Robbins 66
Table 52: Snack Restaurants Chains in the US (2005): Number
of Domestic Units for Dunkin' Donuts, Baskin-Robbins, and
Krispy Kreme Doughnuts 66
C-Store Restaurant Chains 67
Table 53: C-Store Chains in the US (2005): Sales in US$
Million for 7-Eleven, Wawa, Circle K, White Hen, Sheetz, and
Casey's General Store 67
Italian Restaurant Chains 67
Table 54: Select Italian Restaurant Chains in the US (2005):
Sales in US$ Million for Olive Garden, Romano's Macaroni
Grill, Sbarro, Carrabba's Italian Grill, Uno Chicago Grill,
Johnny Carino's Italian, Fazoli's, Maggiano's Little Italy,
Buca di Beppo, Bertucci's Brick Oven Ristorante, and Papa
Gino's 67
Grill-Buffet-Restaurant Chains 67
Table 55: Grill-buffet Restaurant Chains in the US (2005):
Number of Domestic Units for Golden Corral, Ponderosa
Steakhouse, and Ryan's Family Steak House 68
Table 56: Grill-buffet Restaurant Chains in the US (2005):
System-wide Foodservice Sales in US$ Million for Golden
Corral, Ryan's Family Steak House, and Ponderosa Steakhouse 68
Restaurant and Bar Foodservice 68
Table 57: US Restaurant and Bar Foodservice Analyzed with
Annual Sales Figures in US$ Billion for Years 2003 through
2008 68
Military Restaurant Chains 69
Table 58: US Military Restaurant Services Sales by Type -
Officer and NCO Clubs, and Military Exchanges Independently
Analyzed with Annual Sales Figures in US$ Billion for Years
2003 through 2008 69
9. Japan 69
Overview 69
Inhibiting Factors 69
10. European Perspective 70
10a. Russia 70
Sbarro to Become Russia’s Third Largest Restaurant Chain 70
10b. United Kingdom 70
Market Trends 70
Convenience Food 70
Take Away Food 70
Supermarkets 70
Contract Foodservice 70
Table 59: Contract Foodservice Market in the UK (2005):
Percentage Breakdown for Compass/Sutcliffe, Sodexho,
Aramark, Elior, and Others 71
Market Players 71
Outlook 71
11. An Asian Perspective 71
Overview 71
Governing Factors 71
Chain Penetration Rate of Various Segments 72
11a. China 72
Leading US Casual Dining Players 72
Chinese Restaurant Market 72
Chinese QSR Market 72
GLOBAL DIRECTORY
