Karen Bosher wrote a great post about the sadness of the demise of another burger chain and how many hospitality groups are only surviving through perpetual investment. It prompted the expected cheerleader comments of “here, here” support. Except for one comment from an MD, not in hospitality, which got me thinking. He said it was down to ‘poor business planning, and that ‘the market is saturated with food joints’.  Harsh! But is he wrong?

I used to Run Pizza Expresses when there were queues around the block! Okay, that was yonks ago, but aside from TGI Fridays and Café Rouge there was little competition 20-odd years ago.   And yes, eating out was comparatively cheaper then, in fact, the cost of eating out has doubled from the early 2000’s. But then everything else was more expensive. Clothes and electrical items have halved in cost since. In 2004 a TV would cost £800 today you can get a far better one for half that. So, it can’t be just a cost issue. Though granted, a telly lasts a lot longer than a burger does.    

Henley-on-Thames, where I live, has a population of 12K. TripAdvisor lists Henley as having 80 cafes, pubs, and restaurants. If every resident, eating out an average of twice a week, visited all establishments evenly, they would generate an average of 15,600 customers per year. At £30 a head that would be just £468,000. And now we are waiting for all the buildings, that were banks in Henley, to become restaurants too.

So, clearly there will be winners and losers since people vote with their feet, don’t all eat out twice a week, and don’t share their disposable income that evenly. Add into that the National Insurance hike? Yikes.

We have a tendency to focus only on the industry we are in and with that, I wonder if we are blind-sided by the selected positive PR spun by industry newsletters and then look to blame external factors when it is convenient.

Has the casual dining market done this to itself? Has it reached saturation? In my humble opinion, while the interiors of new sites look stylish and the menu on-trend, once the shininess wears off, the only thing that will ensure footfall is consistency in high service standards or as Karen says, continual reinvestment into reinvention.

If you are a casual dining business and would like to find out more about how we can help you to grow and boost your reputation, please get in touch for a free consultation.