By Lisa Baertlein
LOS ANGELES, Jan 19 (Reuters) - Overall restaurant openings offset closures in 2008 and unit growth stopped for the year after rising 2.0 percent in 2007, market research company NPD Group said on Monday.
Fast-food chains such as McDonald's Corp, Subway and Panera Bread Co increased their number of outlets by about 1.0 percent from 2007 to 2008, according to NPD's ReCount census of restaurants in the United States.
At the same time, the ranks of mid-tier and fine-dining restaurants declined, hit hard by a shrinking economy, rising unemployment and a credit crunch.
As diners continue to pinch pennies, many analysts expect the overall restaurant industry to contract in terms of units in 2009.
'We would not be surprised to see a greater than average number of closings in 2009, especially following the holiday season,' Robert W. Baird analyst David Tarantino said, referring to 2008 holiday retail spending, which was the worst in about four decades.
As consumer spending stagnates, restaurant owners across the spectrum are putting up fewer new units. Some, like bar & grill chain Ruby Tuesday Inc, recently have announced store closures.
FAST AND CHEAP
Fast-food has been the best performing segment of the restaurant industry during the economic downturn, appealing to diners with 'value' menus that feature food items in the $1 range.
Family dining unit counts were down 3.0 percent for 2008. Those chains include restaurant names like Denny's Corp and IHOP, owned by DineEquity Inc, said Greg Starzynski, who heads the ReCount area at NPD.
Casual dining chains, defined as those that have waiting staff and serve alcohol, were flat compared with 2007. That segment includes restaurants like Cheesecake Factory Inc and Brinker International Inc's Chili's Grill & Bar.
The number of U.S. fine-dining restaurants fell by 8.0 percent year-on-year, according to ReCount. Chains in that group include upscale steakhouse owner Ruth's Hospitality Group , which has seen its sales fall as companies slash entertainment expense accounts.
In general, big restaurant names have been outperforming small chains and independent operators, Starzynski said.
'That has always been the case in economic downturns,' he said, noting that big operators buy everything from food to advertising at relatively lower cost.
There were 575,423 restaurants open at the end of September 2008, down from 576,081 the year earlier, Starzynski said.
(Reporting by Lisa Baertlein) Keywords: USA RESTAURANTS/ (lisa.baertlein@thomsonreuters.com; +1 213 955 6742; Reuters Messaging: lisa.baertlein.reuters.com@reuters.net; ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
LOS ANGELES, Jan 19 (Reuters) - Overall restaurant openings offset closures in 2008 and unit growth stopped for the year after rising 2.0 percent in 2007, market research company NPD Group said on Monday.
Fast-food chains such as McDonald's Corp, Subway and Panera Bread Co increased their number of outlets by about 1.0 percent from 2007 to 2008, according to NPD's ReCount census of restaurants in the United States.
At the same time, the ranks of mid-tier and fine-dining restaurants declined, hit hard by a shrinking economy, rising unemployment and a credit crunch.
As diners continue to pinch pennies, many analysts expect the overall restaurant industry to contract in terms of units in 2009.
'We would not be surprised to see a greater than average number of closings in 2009, especially following the holiday season,' Robert W. Baird analyst David Tarantino said, referring to 2008 holiday retail spending, which was the worst in about four decades.
As consumer spending stagnates, restaurant owners across the spectrum are putting up fewer new units. Some, like bar & grill chain Ruby Tuesday Inc, recently have announced store closures.
FAST AND CHEAP
Fast-food has been the best performing segment of the restaurant industry during the economic downturn, appealing to diners with 'value' menus that feature food items in the $1 range.
Family dining unit counts were down 3.0 percent for 2008. Those chains include restaurant names like Denny's Corp and IHOP, owned by DineEquity Inc, said Greg Starzynski, who heads the ReCount area at NPD.
Casual dining chains, defined as those that have waiting staff and serve alcohol, were flat compared with 2007. That segment includes restaurants like Cheesecake Factory Inc and Brinker International Inc's Chili's Grill & Bar.
The number of U.S. fine-dining restaurants fell by 8.0 percent year-on-year, according to ReCount. Chains in that group include upscale steakhouse owner Ruth's Hospitality Group , which has seen its sales fall as companies slash entertainment expense accounts.
In general, big restaurant names have been outperforming small chains and independent operators, Starzynski said.
'That has always been the case in economic downturns,' he said, noting that big operators buy everything from food to advertising at relatively lower cost.
There were 575,423 restaurants open at the end of September 2008, down from 576,081 the year earlier, Starzynski said.
(Reporting by Lisa Baertlein) Keywords: USA RESTAURANTS/ (lisa.baertlein@thomsonreuters.com; +1 213 955 6742; Reuters Messaging: lisa.baertlein.reuters.com@reuters.net; ) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.