Top 500 trends in action
By Sara Rush Wirth on Apr. 26, 2019These are nine trends that helped shaped Technomic's Top 500 chain restaurants in 2018. They range from quick service's growing interest in meat-free menu items to full-service chains finding success by adopting an indie vibe. Click ahead to see them all.
Investment landscape
The industry continued to see investments from private-equity firms and holding companies, as well as brands merging, such as Cava acquiring Zoes Kitchen and Modern Market (pictured) purchasing Lemonade.
Health wins
While they may not always order the healthiest option, consumers are supporting health-focused restaurants. Sweetgreen, True Food Kitchen (pictured) and CoreLife Eatery were among the fastest-growing brands.
Top-heavy
The top 100 chains grew sales 3.5% in 2018, but they accounted for 83.4% of all Top 500 sales. While chains Nos. 401-500 generated the most sales growth, at 3.9%, those brands accounted for just 1.8% of overall sales.
Bowls are big
We’ve heard about bowls and ethnic menu trends for years, but many of those chains hadn’t grown enough to make the Top 500 until now, says Kevin Schimpf, Technomic's manager of industry insights. Both health-forward concepts with grain bowls and brands focused on Mediterranean and Japanese are making an impact.
Impossible investment
White Castle was the first major chain to trial the Impossible Burger, catering to flexitarians with meat-free sliders. Since then, Burger King, Carl’s Jr., Red Robin and Buffalo Wild Wings have all promoted meat-free items.
Pizza players
Like the fast-casual segment itself, build-your-own pizza chains are starting to see some consolidation, with MOD Pizza (pictured) and Blaze Pizza separating themselves from the pack and owning the space.
Striving for 'different'
As casual-dining chains continue to struggle, brands with an indie vibe are performing well. Many consumers, for example, don’t realize that concepts such as Cooper’s Hawk (pictured) are chains—they are upscale with a strong bar program and a bit of local flare, but have more than 30 high-earning units. QSR Whataburger is in the same boat, says Schimpf—it grew 6% in 2018 and continues to do well, but most consumers don’t realize how far a reach it actually has.
Mixed formats
It’s not just white tablecloths and leather banquettes dominating fine dining. Operators are adding lounge areas and high-end counter seating in an effort to extend the number of potential dining occasions.
Business as usual
The consumer set that frequents fine-dining restaurants is still going out for pricey meals. The fine-dining space is typically treated as occasion-based eating, and many who are customers of these high-end concepts aren’t feeling a pinch.