Restaurant Count Sags in '08, Down in '09

Restaurant openings were down in 2008 from the year before, while fast-food leaders McDonald's, Subway and Panera Bread increased their number of outlets from 2007 to 2008 by 1 percent. According to market researcher NPD Group, there were 575,423 restaurants open at the end of September 2008, which is down from 576,081 the year earlier.

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. [via Reuters]