Restaurant Market Growth

Restaurant nerd time. I looked at fast-food chains using Technomic, Inc. data. Nearly half of the more than 500 quick-service chain restaurants lost sales last year. Only 37 could boast U.S. system sales growth of 25% or more, which qualifies them as growth chains. Of those 37, only 10 of them are center-of-plate concepts like burgers, sandwiches, chicken or bowls or whatever. The rest sell beverages, notably coffee, or desserts like ice cream or cookies. Why is that? Part of it is the way franchising works, where a lot of high-growth concepts come from simpler concepts that are easier for prospective franchisees to operate (and which can have really hard falls, as many of the lowest-growth concepts were also beverage or treat chains). But this is also where the consumer is going. They're eating fewer large meals and more smaller meals, which is fueling the growth of such concepts. More here: https://lnkd.in/gpbXEfcB

Expanding Without Franchising: Why I Chose Ownership Over Speed For many restaurant brands, franchising is the go-to strategy for expansion: rapid growth, lower risk, and local operators eager to invest. But, I chose a different path for Swiss Butter: full ownership. Why? Because long-term brand integrity matters more to me than short-term profit. Here’s what I’ve learned along the way: Quality Control Is Everything Franchising introduces inconsistencies. No matter how good your playbook is, you lose control over execution. At Swiss Butter, we own every location to ensure the exact same steak frites experience from Beirut to London, Madrid to Riyadh. Brand Culture Can’t Be Outsourced A brand is more than its menu.  It’s the way guests feel when they walk in. The atmosphere, the service, the team energy… all of it defines the experience. When you franchise, you risk losing that culture. Keeping full ownership lets us protect what makes Swiss Butter unique. Long-Term Value > Quick Expansion Franchising is fast cash, but it comes at a price. Third-party operators make decisions based on their own bottom line, not always what’s best for the brand. We prefer strategic, sustainable growth in high-potential markets, without cutting corners. It Requires Financial Discipline No external franchisee capital means every expansion decision must be deliberate: ✔ Selecting markets strategically based on demand & feasibility. ✔ Investing in infrastructure to scale efficiently. ✔ Prioritising consistency over speed. Would franchising have made growth easier? Yes. Would it have guaranteed the same Swiss Butter experience everywhere? Not necessarily. For us, full ownership = full accountability, and that’s how we build a brand that lasts. What do you think? Does ownership matter more than speed when scaling a brand? Drop your thoughts below. #Leadership #Entrepreneurship #Franchising #RestaurantGrowth #SwissButter #HospitalityInnovation

Ever bought a mystery meal from a five-star hotel for just 10 bucks? 🍱🎁 In China, luxury hotels are reimagining surplus food as “leftover blind boxes”, mystery meals sold at deep discounts after buffet hours. 🤓This viral model isn’t just a quirky trend, it signals how brands can blend value, sustainability, and experience in one offer. From Hilton in Shenzhen to seafood chains in Changsha, Chinese hotels are using digital platforms to package high-quality, unsold buffet items into curated surprise bags priced around US$11 (¥80) What began as a solution to food waste is now a playbook for engaging Gen Z with low-cost luxury and gamified consumption. More insights below 👇 🍱 Over 2,600 tonnes of food saved and 6,500 tonnes of CO₂ emissions reduced by China’s “Xi Shi Magic Bag” platform, now active in 40+ cities. 🍱 Shenzhen’s Hilton saw daily sell-outs of their ¥79 blind box buffet in 2025, a move that lowered waste while pulling in younger consumers. 🍱 With RevPAR* falling up to 7% for China’s high-end hotels in 2024–2025, this model offers a creative alternative to blanket discounting. ✔️ China’s “surprise surplus” economy offers a fresh lens on combining cost-efficiency, sustainability, and digital engagement, one that hospitality brands worldwide can learn from. ✔️ Global players can adopt this by designing low-friction, app-based surprise models that convert waste into customer delight and loyalty. What’s your take? 🤔💬 Could this idea reframe waste management in your sector? *Revenue Per Available Room, is a key performance indicator (KPI) in the hospitality industry. _____ insights via Caijing, STR, Xi Shi Magic Bag #china #sustainability #retailinnovation #ashleytalks ❗️Looking to adapt China’s agile marketing to your industry? Message me for tailored trend applications and hospitality strategies.

Europe’s food delivery apps are beginning to serve up a profit In most industries, rising interest rates are often viewed with dismay as they drive up capital costs. However, in the European food delivery sector, operators are experiencing a positive turn as they pivot away from aggressive expansion strategies that erode value. For the first time, all three major European delivery companies are poised to report positive adjusted EBITDA in 2023. This crucial metric, excluding the impact of share-based compensation, offers a glimpse into the underlying performance of the business. Deliveroo in the UK expects to outperform its guidance of £60-80 million adjusted EBITDA, while Just Eat Takeaway.com recently indicated above-guidance adjusted EBITDA of around €320 million. Germany's Delivery Hero, operating popular brands like Glovo, foodora, and foodpanda , anticipates adjusted EBITDA margins exceeding 0.5%. Although these profits are modest and adjusted, they mark a significant shift for a sector that has grappled with years of negative cash flows, keeping investor confidence subdued. Yet, 2023 serves as validation that the food delivery concept is effective. Despite the cost-of-living challenges, these companies have successfully increased revenue per customer without a mass exodus from their platforms, with Deliveroo's gross transaction value rising 3% YoY to £7 billion. Anticipating further growth, particularly in markets where food delivery is less prevalent, demographics play a crucial role. As today's delivery-prone youth mature and disposable income grows, sustained growth in gross transaction volume in the high single digits is a reasonable assumption for the mid to long term. Increased market penetration brings higher margins. In concentrated "hyperlocal" areas with more participating restaurants and customers, delivery riders can make shorter trips and optimize deliveries. Operating margins, after accounting for amortization and depreciation, are expected to shift from negative to approximately 6% of transaction values, signaling an attractive transformation. This positive trajectory is notable, especially when considering the sector's valuation at 6.8 times the estimated 2025 EBITDA, according to Capital IQ. In comparison, European food retailers like Tesco and Carrefour , with limited growth potential, hover near 6 times. Despite past challenges, beleaguered food delivery platforms are showing promising signs of delivering positive outcomes. Stay in the loop! Subscribe to our newsletter, Boolanga Business Bites, powered by Wear Your Brand, to get more industry insights!

I have always been fascinated by how dining habits evolve with social and economic shifts. In India, the geography of dining is changing before our eyes. Urban dine-in remains important, but the real momentum is building in suburbs, tier-2 towns, and through delivery platforms. The food services market in India is expected to grow from about Rs 5.5 lakh crore today to close to Rs 10 lakh crore by 2030. Online delivery is projected to account for nearly a fifth of that pie. Cloud kitchens, which were once considered experimental, are becoming mainstream. They already represent over a billion dollars in value and are projected to triple by the end of the decade. This is not just about efficiency. It is about creating hospitality in new forms, wherever the diner chooses to be. For me, these numbers are not abstract. They are signals. They tell us how restaurants must rethink design, reach, and experience. Here is how I see it: 1/ Suburbs and tier-2 cities are emerging as powerful growth engines. 2/ Cloud kitchens can extend a brand’s presence without diluting its identity. 3/ Delivery and hybrid formats demand the same attention to quality and consistency as a flagship restaurant. The future of dining in India belongs to businesses that understand these shifts deeply and adapt with clarity. As someone who lives and breathes this industry every day, I see this as a moment of great possibility. #India #Hospitality #Future #Trends #Growth #Success

When you walk into a restaurant in 𝗕𝗲𝗻𝗴𝗮𝗹𝘂𝗿𝘂 vs one in  𝗩𝗶𝗷𝗮𝘆𝗮𝘄𝗮𝗱𝗮, what feels the same … and what doesn’t … tells you everything. Let me explain. Every city has its own flavour code. 𝗩𝗶𝗷𝗮𝘆𝗮𝘄𝗮𝗱𝗮, diners want ingredient-level transparency and a strong sense of local authenticity... if it’s on the plate, they want to know where it came from. 𝗕𝗲𝗻𝗴𝗮𝗹𝘂𝗿𝘂, on the other hand, leans into experience ... craftsmanship, storytelling, and that ‘something extra’ that elevates dining into discovery. So before launching in any new market, we invite guests into flavour labs - immersive tasting sessions where locals co-create the menu with our chefs. We install real-time feedback loops, bring in regional connoisseurs, and fine-tune both our 𝘴𝘪𝘨𝘯𝘢𝘵𝘶𝘳𝘦 𝘥𝘪𝘴𝘩𝘦𝘴  (which reflect our brand DNA) that define the brand and 𝘭𝘰𝘤𝘢𝘭 𝘩𝘦𝘳𝘰𝘦𝘴 (crafted to suit local palates) that resonate with the city. Then come what we call 𝘤𝘰𝘯𝘯𝘦𝘤𝘵𝘰𝘳 𝘥𝘪𝘴𝘩𝘦𝘴 - the bridge between comfort and curiosity. A very important element that binds the menu together. They help diners start with something familiar, then gently nudge them toward the new. This triad - 𝘴𝘪𝘨𝘯𝘢𝘵𝘶𝘳𝘦, 𝘭𝘰𝘤𝘢𝘭, 𝘢𝘯𝘥 𝘤𝘰𝘯𝘯𝘦𝘤𝘵𝘰𝘳 𝘥𝘪𝘴𝘩𝘦𝘴 forms the backbone of a scalable yet hyper-localised restaurant strategy. That balance between global consistency and local intimacy is what builds true customer loyalty because the secret to scaling restaurants across diverse markets isn’t just great food but listening deeply enough to know what people hunger for beyond the menu. Our obsession with decoding customer behaviour locally ensures we hit the mark and stay globally consistent but locally relevant. While our signature dishes define the brand’s identity and I love them, it’s the local heroes and connector dishes that reveal the true character of each market. From 𝗕𝗲𝗻𝗴𝗮𝗹𝘂𝗿𝘂 to 𝗕𝗼𝘀𝘁𝗼𝗻, these dishes often surprise me , teaching us more about our guests than any data ever could. They show how taste, culture, and expectation vary across regions, and how far diners are willing to travel with us on a culinary journey. Observing these nuances across continents not only deepens our understanding of customers but also shapes how we scale globally without losing the soul of the brand.

From shakes to £200m+ revenue. 21% CAGR and £14m in profit. That't Huel. Most challenger brands chase topline and torch margins, hoping they’ll come back later. Huel never did. Instead, they built one of the most disciplined growth stories in F&B. The 2024 numbers: → Revenue: £214m - compounding at ~21% a year over 5 years → Gross margin: ~59% - rare in F&B at scale → Operating profit: £14m (vs -£4m in FY20) → Funding: ~£100m (split between £50m equity + £50m debt) The playbook: 1️⃣ Founder focus → In 2017, founder Julian Hearn hired James McMaster as CEO. → Hearn doubled down on brand and marketing, McMaster on operations and scale. → A rare challenger move — and proof that vision plus professional leadership compounds. 2️⃣ Unit economics first → Margins close to 60%. Growth wasn’t bought, it was earned. → AOV rose 14% (£56 → £73, 2020–22) without denting loyalty. 3️⃣ Community over CAC → From heavy paid ads to community-driven growth. → Referrals now drive 22% of new customers - and 60% of those convert. → Marketing spend as % of revenue fell while LTV improved. 4️⃣ Cultural cachet → Investors like Idris Elba and Steven Bartlett brought more than capital. → They gave Huel cultural relevance and authentic advocacy - turning “meal replacement powder” into a lifestyle brand. 5️⃣ Evolution without dilution → From powders to Hot & Savoury, ready-to-drinks and bars - the “complete nutrition” story stayed intact. → Diversification lifted order values and brought in new audiences without cannibalising the core. 6️⃣ Omnichannel scale → From pure DTC to 25,000+ retail doors in 2024 (up 128% YoY). → Retail fuels awareness; DTC sustains loyalty. Both sides of the flywheel spin. The lesson: Huel proves what most challengers forget: unit economics compound. Margins first, growth second - that’s how you build a £200m+ food brand that lasts. -- I’m John - a CFO who loves brand and co-owner of Traction. Follow for insights on how - and why - brand building belongs on the balance sheet.

Headlines can be deceiving. A recent report pointed out that Singapore saw 3,000 restaurant closures in 2024, but it doesn’t tell the whole story. In the same period, there were 3,793 new openings, representing a roughly 26% net increase. So what happens next? 🥙 Rising Competition Amid High Costs: Even though the net number of establishments grew, existing restaurants face mounting pressure. Operational costs are higher than ever, rent continues to climb, ingredient prices remain volatile, and wages are increasing as businesses compete for scarce manpower. 🥙 Economic Uncertainty Adding to the Strain: The global and local economic outlooks are uncertain. As disposable incomes tighten, consumers might dine out less frequently or spend more cautiously. This softening demand hits even harder when the market is flooded with new players, forcing restaurants to work harder to attract a shrinking pool of customers. 🥙 Impact of Overseas Operators: A significant chunk of these new openings appears to come from well-funded overseas operators, where chains or brands that already have established playbooks and deep pockets are entering the market. While these entrants can bring fresh concepts and experiences, they often have the financial backing to weather losses for longer periods. Local operators, meanwhile, can end up squeezed, struggling to compete on marketing, pricing, and economies of scale. So, the question isn’t just “how many restaurants open or close,” but rather, “how can businesses adapt to survive these intense pressures?” With the long-term sustainability of the F&B industry in Singapore we need to be rethinking operational efficiency to exploring new revenue streams and customer engagement strategies, the path forward will require resilience, innovation, and perhaps a collective effort from the entire industry. As we continue to see shifts in the F&B landscape, we must also ask ourselves: what can be done to support this vital part of our economy, or will it collapse? Story by Jieying Yip.

A decade ago, when I moved back home - I’d miss my Chipotle Mexican Grill's burrito. Today, something similar is available at the touch of a button. Food delivery has changed the game, and evolved India’s taste buds 🌮 Just in February alone, I’ve placed 17 orders on food delivery apps - from a last minute ice cream order for guests coming home to a smoothie as an evening snack at work🙌🏻 The cuisines were also varied - Lebanese, Italian, Chinese, Korean, Mexican and of course Indian. I’ve seen the conversation evolve everywhere I go. Everyone is a foodie. ‘International’ cuisine isn’t enough. Consumers now want specialisation. I’d argue, food delivery has made opening a food outlet so much easier and led to an evolution of our taste buds. Let’s deep dive into why: ✅ Convenience at Your Doorstep Meals delivered directly with literally 0 effort. All the options available on your screen. Discovery couldn’t be easier. And, with reasonable prices - consumers are willing to try new things. ✅ Supporting Socio-Economic Factors Busy lifestyle, increased disposable income, and tech adoption have shifted people away from traditional home-cooked meals. A whitespace perfectly tapped by Zomato and Swiggy. ✅ Innovative Marketing Strategies & Interesting Offers Heavy marketing and lucrative sales tactics such as discounts, cashback deals and attractive loyalty programmes like Swiggy One hook millions of users to come in every day. Social media presence is no stranger in this space. Zomato has 891K followers and their strategy is a case study on how to really connect with your customer. This leads to 30Mn+ organic traffic per month. The outcome? ⭐️ There were 6 Cr+ unique dishes served on Swiggy in 2023 ⭐️ The no. of meal delivery users in India will reach 346.6 Mn by 2028 It’s part of our daily life. ‘Swiggy it’ is now something my mom says. And, it’s made access to global cuisine democratic! With Open Network For Digital Commerce (ONDC) coming in, this could only get bigger. One thing’s for sure - food delivery has caused real change in behavior and it’s here to stay. Our taste buds are nuanced. Everyone is a food critic 😂. The ‘new place’ I tried is a conversation starter. Access to quality food has increased. And, the bar is now much higher to achieve success as a QSR/cloud kitchen! Have your taste buds evolved? Check your last month’s order history to verify 😜 PS: a photo with one of my favorite food founders Sagar Daryani of Wow! Momo at one of his outlets in Kolkata after an awesome meal 🥘 #foodandbeverages #fooddelivery #india #indianfood #foodbusiness

Busy Restaurants Are Going Bankrupt Every Day Here's the hard truth: Being "busy" doesn't equal being profitable. I've analyzed hundreds of restaurant P&Ls, and the most profitable restaurants aren't always the fullest. They're the ones with the right business model. Here are 5 profit-driving factors you need to revisit today: Menu Engineering: • Cut the bottom 20% of low-margin items • Highlight high-margin dishes • Keep the menu small and focused • Focus as much on contribution as cost % Labor Optimization: • Schedule based on cover patterns • Cross-train staff • Set targets by daypart • Focus more on productivity and avg spend Food Cost Control: • Track waste daily • Standardize portions • Negotiate supplier contracts quarterly • Leverage industry partners. Pricing Strategy: • Review competitors monthly • Price based on value, not just cost • Consider dynamic pricing for peak times • Set pricing to the quarter Operating Hours: • Analyze profit by hour • Cut unprofitable time slots • Focus on peak profitability periods • Use the airline approach The math is simple: Revenue - Expenses = Profit But the execution is what matters. Start with one change this week. Track results. Adjust. Repeat. Follow me Jim Taylor for more restaurant profitability insights. And if this hits home, repost it because you never know who else might find it useful. #restaurants #restaurantmanagement #restaurantowners #restaurantindustry