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Restaurant Sales Off for the Largest Chains, Finds Technomic
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Annual Top 500 report provides key industry update and market share by menu category
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“Although we have seen overall growth within the Top 500, the pace has slowed since last year,” said Ron Paul, President of Technomic. “Competition for share of stomach is getting more and more challenging. But brands that have found a way to differentiate themselves are gaining market share.”

Among limited-service restaurants, the highest growth came from the Asian, bakery cafe and coffee cafe categories. Segment leaders were Panda Express (10.7 percent sales growth), Panera Bread (11.8 percent) and Starbucks (10.6 percent). McDonald’s, the largest U.S. restaurant chain, saw minimal sales growth of 0.7 percent in 2013, to reach annual sales of $35.9 billion. Subway continues as the second largest restaurant chain in the U.S., followed by Starbucks, Wendy’s and Burger King.

As a whole, limited-service restaurants saw a sales bump of 3.9 percent. Chicken chains, which grew 5.1 percent, represented another limited-service sub segment with above-average sales growth. Chick-fil-A grew 9.3 percent with 2013 sales of $5.1 billion and surpassed KFC as the top chicken chain.

Full-service restaurants experienced a 2.4 percent sales increase in 2013, a slight decrease over the 2.9 percent seen in 2012. The full-service steak category continued to show healthy growth, with an increase of 6.2 percent. Gains in the steak category were driven by Texas Roadhouse (11.1 percent) and LongHorn Steakhouse (12.8 percent). Among varied-menu chains, which increased sales by 2.5 percent overall, the category leader, Buffalo Wild Wings boosted sales 12.9 percent.

The Five Fastest-Growing Chains with Sales Over $200 Million
Ranked by Percentage Increase in Sales in 2013 vs. 2012
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The Five Fastest-Growing Chains with Sales Under $200 Million
Ranked by Percentage Increase in Sales in 2013 vs. 2012
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* Technomic estimate

More than 67 percent of the Top 500 restaurant chains posted at least nominal sales increases. Only 156 of Top 500 chains suffered sales declines in 2013 compared to 168 in 2012. Both winners and losers appeared in every segment and menu category. These widely mixed results demonstrate the overall competitiveness of the industry and the need for suppliers and operators to carefully identify and focus on the winners.

International performance by the Top 500 restaurant chains continued to outperform domestic growth in 2013. International sales increases (4.4 percent) outpaced U.S. sales growth (3.5 percent); international unit growth was up 9 percent versus 2.2 percent for U.S. units.

The Technomic Top 500 Chain Restaurant Report provides Technomic’s exclusive 1-year sales forecast by menu category, update on franchise and international activity, outlook for the future, market share by menu category, newly added Key Themes, and much more.

To purchase or learn more about this and other industry reports from Technomic, please visit Technomic.com or contact one of the individuals listed below.

Note: The results reported here are preliminary and subject to revision.

About Technomic
Technomic provides clients with the facts, insights and consulting support they need to enhance their business strategies, decisions and results. Its services include numerous publications and digital products, as well as proprietary studies and ongoing research on all aspects of the food industry. For Technomic updates, please follow us on Twitter, LinkedIn or our blog.

Technomic Contacts:
Media:
Darren Tristano
312-506-3850
Data Requests:
Chris Urban
312-506-3929
Purchasing Details:
Patrick Noone
312-506-3852