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Casual dining growth despite high-profile closures

by User Not Found | Sep 05, 2018
Data from the NPD market research group shows a 7% increase in visits to restaurants in the year to June 2018.

This is equivalent to an extra 35 million meals served compared to the previous year, despite a drop of 43 million visits to all out of home dining establishments in the same period, and a large number of high-profile casual dining businesses struggling to make a profit.

Dominic Allport, insights director with the NPD Group, said: “While the market is expanding, success is not guaranteed. One of the problems has been the tendency for some operators to scale up too quickly, with quantity of sites outweighing quality of sites.

“Some of the newer brands are also failing to set themselves apart from competitors, leaving consumers with the sense they are getting similar menus, similar venues and similar customer experiences.

“But the biggest issue is the pressure on profit margins with business rates, rent, food and labour all costing more in an over-supplied market.”

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