Trends
Chick-fil-A appears to be on the way to becoming the third largest U.S. restaurant chain by sales, behind only McDonald’s and Starbucks. It was in the number 7 slot in 2017.
Some of the reasons The Wall Street Journal attributes to Chick-fil-A's rise include:
Adding delivery service has been a recent major change in the restaurant business, but Applebee’s biggest franchisee, with over 400 locations, is reconsidering just how good it really is for business, not only now but going forward. Is it possible that it could be a major negative in the years to come, much as the online booking services have turned out to be for hotels?
Hotel owners are keeping a sharp eye out for new technology that can help their bottom line, but workers, along with unions, are concerned about devices that could eliminate their jobs. They want input into changes that affect them.
In past years, lawmakers have been grappling with the viability and impact of increasing the minimum wage to $15 an hour. While some states and cities have embraced the idea and enacted the increases, others have been hesitant, not convinced that the raise will benefit workers. Recent survey results of businesses, franchises and other groups suggest that such minimum wage raises may actually harm workers, resulting in fewer jobs, greater difficulty in younger workers finding employment and adoption of automation and other changes to offset the higher cost of labor.
While boutique hotels comprised just 3.2 percent of the total U.S. lodging supply in 2017, boutique projects represented 17.8 percent of the rooms in the development pipeline as of June 2018.
President Trump’s recently placed tariffs and an increased supply of beef and pork have made their impact through lower prices. Americans are taking advantage of the new circumstances by eating more beef and pork and less chicken.
Restaurant owners are moving to promote hamburgers instead of chicken. The more affordable beef and pork will presumably show up in lower priced sandwiches or give restaurant owners a little extra margin.
Strained relations between franchisees and their franchisors are making the news. McDonald's, Subway, Tim Hortons, 7-Eleven and Jack in the Box are some household names that we've been reading about of late. What are the issues that push franchisees to decide that they must speak up and take action to defend their businesses?
Americans are eating at home more often for a variety of reasons, including economic. While that may seem to be belied by increased restaurant sales, that increase is because of price hikes. Restaurant traffic has trended down over the years since 2000 and has most recently been down for 29 straight months.
Todd Penegor, CEO of Wendy's, says convenience is getting redefined. He explains that technology will play a big role at the company in getting more orders into the kitchen and creating a better customer ordering experience.
Photo: CNBC video screenshot
The nation’s low unemployment rate is making it harder to fill truck driver openings, especially for routes requiring several days away from home. Bonuses are being offered to lure more truckers, adding to the trend of higher food costs. Restaurants are countering by buying local ingredients, which fortunately have high appeal.