San Antonio Business Journal’s Post

The Excellence in Pub & Bar Retailing Conference has opened to a packed house, with Stephen Owens, managing director – pubs and restaurants at Christie & Co, setting the scene for the market, with an update on sector valuations, price expectations, market sentiment, who the buyers and sellers are, and what’s in store for the year ahead. Quick quotes: "In restaurants the drive thru sector doing well, the mid market sector will continue to struggle, pre covid lots of M&A activity but it then went on the back burner.. we don't anticipate a huge spike in M&A until interest rates come down... pub operators are rationalising their estates - what's working and what's not... private equity is not really seeing value at the moment... some of the franchise pubs positive performance has taken us by surprise." Meanwhile, Mark Bentley, business development director HDI, talks about the areas where the pub sector is and has been performing strongly and where the opportunities are for the sector to drive growth. Quick quotes: "The market is tough but there are winners and data is helping... it can be used around issues such as pricing, where a forensic approach is wise... delivering value for experience is more important than ever... strike days showed zone 1 negative impact but not an uptick in local pubs.. loyalty schemes - anything that can drive repeat visit is good, as we see in the data that there are many people visiting just once in a year... danger of occasions is that pub sector relies on those... when there is a key occasion sector does well, but the opportunity is in the quieter times."

Alicia Kelso Nation's Restaurant News tells us - "Nearly 33% of the Top 500 chains experienced a net decrease in 2023 and those closures have continued in 2024" Sales from the Top 500 restaurant chains grew by 7.8% in 2023, according to recently released Technomic, Inc. data. Further, the domestic footprint of the Top 500 chains increased by 1.8% in 2023 to a total of more than 233,000 restaurants. This marked the highest rate of new location growth since 2016. That doesn’t mean it was all rainbows and butterflies for the industry, however. Much of the unit growth was paced by a handful of players, like Jersey Mike's Subs, 7 Brew Coffee, and Crumbl, while much of the sales were driven by higher prices. And, as the overall count of Top 500 locations grew, nearly 33% of ranked chains experienced a net decrease in locations in 2023 — an uptick in chain closure rates versus both 2022 and 2021. All told, there were 17 chains that experienced a double-digit unit count retrenchment from 2022 to 2023, including: Church's Texas Chicken’s closed 13% of its system last year, going from 925 in 2022 to 805. California Pizza Kitchen is also 13% smaller, ending 2023 with 140 locations. TGI Fridays is over 20% smaller, and now counts about 230 restaurants. O'Charley's closed nearly 55% of its system in 2023 and now has just 64 locations. Corner Bakery is nearly 25% smaller, finishing 2023 with just over 100 locations after filing for bankruptcy in February last year. Boston Market retrenched by nearly 68% in 2023, going from nearly 350 restaurants in 2022 to just 91. UNO Restaurants, LLC is over 10% small...Clickthru to get the rest... https://lnkd.in/e-ERcvzt #QSR #Entrepreneur #Restaurants #Franchise #Franchising #FranchiseChat Chainformation Altir Industries, Inc. Ned Lyerly Joe Caruso Michael (Mike) Webster PhD Anders Hall Jonathan Martin Michael Scherr Delaney Hetzer Dr. John P. Hayes, CFE Au Bon Pain Joe's Crab Shack Grand Lux Cafe Quiznos Fuddruckers Romano's Macaroni Grill Red Lobster Tijuana Flats Tex-Mex Rubio's Restaurants, Inc.  Captain D's Potbelly Sandwich Works Swig Hawaiian Bros Island Grill CAVA Dutch Bros Coffee Gen Korean BBQ House Salad and Go Smalls Sliders Savvy Sliders Mo' Bettahs Kura Sushi USA

Another no surprise. Dining out even in lower cost family focused restaurants has become prohibitive for even small families today. Then should you try and stay in the restaurant business, try and find a bank willing to support you at a cost you can afford. The end result of Bidenomics in small business? https://lnkd.in/dFh36i-6 #bidenfailures #bidenomics #economy2024 #election2024

Did you know? As a franchisee of a restaurant or retail location, there are obligations outlined in your agreements about what the premise should look like, as well as expectations that it should be well maintained. There may even be requirements to renovate your location at a certain frequency (ex. every 5 or 10 years). #franchiseopportunity #restaurantrenovation #renovation #storerenovation #remodel #storeremodel

Applebee's Neighborhood Grill + Bar and IHOP cd open co-branded locations in the U.S., according to Restaurant Business Online. Both chains are owned by Dine Brands Global. #CEO is John Peyton. Eight locations have debuted in #Canada, #Mexico, and #UnitedArabEmirates, and done well. [good idea to test in 1) North America and 2) boy-crazy for Uncle Sam #UAE] The two #brands cover all four #restaurant dayparts. Locations have one #kitchen and separate entrances. Deets — ordering from either #menu whenever, e.g. — are still getting un-kinked. The two #chains have 3,400 locations between them, divided roughly evenly. #CasualDining #EatingOut #Nachos + #FunFact — Applebee’s largest #franchisee is Flynn Restaurant Group, in the news today for the carveout its Panera Bread operations are getting on the #California #minimumwage dealio. Flynn’s #billionaire boss is an old high school chum of the Cali #governor. Gavin Newsom #FastFood #wages #QSR

Christie & Co – pub market activity improved in first half of 2024 with signs suggesting mid-market is returning: Sector property advisory firm Christie & Co has said it saw pub market activity improve in the first half of 2024, with signs suggesting the mid-market is returning. The company’s pubs and restaurants 2024 mid-year market insight report revealed its key transactional metrics have trended upwards since January this year, albeit off soft year-on-year comparatives. It said that while demand has been polarised towards bottom-end and premium assets, this has shifted over the past six months, with signs suggesting the mid-market is returning. Additionally, there has been increased M&A activity. signalling that investor confidence has improved. Christie & Co instructions increased by 46% compared with historic low levels. Viewings, offers, deals agreed and exchanges increased by 5%, 15%, 46% and 74% respectively. It found that the sub-£600,000 market remains strong but the freehold, freehouse market is returning as confidence improves. There is also an increased demand for closed sites, particularly within the restaurant sector. as buyers would prefer to buy the property and add value in the current environment. At the same time, the most active buyers are predominantly experienced operators or individuals already in the marketplace who understand value. The report said that pubcos have been notably active – looking to divest sites that no longer fit their portfolios, subsequently freeing up capital to acquire new sites. It said that operators are focusing on creating lean, consolidated businesses versus saturation. Stephen Owens, managing director of pubs and restaurants at Christie & Co, said: “The first half of 2024 has seen the forward momentum continue from the end of last year. What the sector now requires in order to ensure that the recovery continues is stability; the new government to keep its pledge to help the hospitality sector, particularly around business rate reform; interest rates starting to ease; improved consumer confidence; and, hopefully, for the sun to come out and play its part.”

There is no cartel in the supply of ingredients to the food service and hospitality sector. It is possible to shop around and not be at the mercy of one or two suppliers. We have seen material price differences comparing Musgrave MarketPlace vs BWG Foods UC vs JR Byrnes Cash and Carry vs M&P O'Sullivan Ltd and many others. Restaurants and cafes can remain viable if they use Spear to compare prices across wholesalers. Spear is an AI technology developed at Technological University Dublin funded by Enterprise Ireland. If you are a hotel, a food franchisor or run chain of restaurants, you can use Spear. Contact ai@spearteck.com to get this technology or ask for a demo. https://lnkd.in/essQ374q #hotel #CEO #CFO #sourcing #procurement #franchise

The recent closures of two Red Lobster locations in Kansas City highlight a profound challenge facing the American middle class. These closures, part of a trend affecting 87 Red Lobster locations across 27 states, reveal deeper financial issues. Red Lobster, known for its beloved coconut shrimp and cheddar biscuits, has always been a go-to for middle-class families. Their recent financial struggles, including an $11 million loss due to all-you-can-eat shrimp promotions, underscore the pressures on businesses serving this segment. The middle class's decline is tied to the affordable housing crisis, making it harder for families to cover basic needs and leaving less money for dining out. When a staple like Red Lobster can't survive in America's heartland, it underscores the severity of these financial issues. My marketing mentor, Dan Kennedy, saw this coming. In "No B.S. Marketing to the Affluent," he wrote: “In September, 2014, the TGIF restaurant chain announced it was getting out of the restaurant business! The mid-level, casual dining restaurant business chain linked to middle-class consumers has become a terrible business... This mirrors the severe, widely reported troubles at Darden Restaurants, sparking their bargain-priced sale, i.e., dumping of Red Lobster.” Kennedy’s insights emphasize the challenges of targeting middle-class consumers. This understanding guided our pivot towards family offices in Southeast Asia, where new wealth and a growing middle class offer big opportunities. After spending time in Southeast Asia, I’ve returned to the U.S. to seize unprecedented real estate opportunities. Ken McElroy, a legend in the multifamily industry, recently highlighted this potential: “Over 35 years of real estate investing, never have I seen such opportunity as we're about to see over the next couple of years. The real estate market is short about six million housing units, creating significant pressure on pricing and rent. This temporary disruption will lead to massive price and rent increases, presenting a unique opportunity for real estate investment.” Leveraging insights from experts like Kennedy and McElroy, we're positioning ourselves for success in both dynamic, growing markets abroad and the unique opportunities in the U.S. real estate market.

WINGSTOP UK (Lemon Pepper Holdings Ltd) has said it sees potential to grow to more than 300 sites here in time. The brand currently operates 43 sites nationwide, including 12 delivery kitchens. Wingstop’s recent openings include sites in Birmingham, Edinburgh and Leeds, and it is on track to open 15 sites this year, including further restaurants in London, in Clapham, Croydon and its largest site yet, at Westfield Stratford City. The brand, which launched here in 2018, recently secured a former Burger King site in the Midsummer Place scheme in Milton Keynes. Lemon Pepper Holdings co-founder Herman Sahota told City AM: “In assessing the UK market, we’ve identified a significant opportunity for expansion, driven by the fact that chicken is more widely consumed compared to other cuisines. Based on thorough research and an understanding of our competitive landscape, we’re confident in our capability to open at least 100 sites in the next five years, with a total market potential to exceed 300 locations.” Like many businesses, they have not been immune to inflationary pressures, but fellow co-founder Tom G. said they have only raised prices twice and remain in good financial health. He said: “Our financial trajectory for January to December 2024 is set to reach the nine-figure mark in revenue. Despite our aggressive expansion strategy, the business remains healthily profitable at the group level, a testament to the effectiveness of our operational efficiencies and the strength of our business model.” Last November, Michael Skipworth, president and chief executive of Wingstop, said the brand’s debut UK restaurant (in London’s Shaftesbury Avenue) was hitting record sales volumes, and that the UK was a “playbook for its future restaurant development”. 👉 Find out the latest hospitality news first by signing up to the Propel email newsletter for free, here: https://lnkd.in/g_vS_S7

💰Restaurants can profit anywhere from $1,300 a day to over $12,000 🍔 Quick-serve restaurants check and balance registers throughout the day as shifts change, risking high turnover rates, or theft 🍝 Sit-down restaurant waitstaff is often responsible for their cash until the end of the shift For any restaurant, these concerns leave a lot of money needing to be managed closely throughout the day. Add to these challenges that a restaurateur can expect quick-serve establishments vs. sit-down restaurants have different concerns and priorities. With so many factors to consider, are you doing everything to help your staff keep cash in check? #restaurateur #franchise #operationsmanagement