According to NPD group, which is a large marketing research company, in their census in fall of 2010, there were 311,694 independent restaurants accounted for. This number obviously proves that their is plenty of opportunity for small businesses and entrepreneurs to start their own restaurant. There is just as much opportunity for entrepreneurs to open up chain restaurants since the census also reported 267,408 chain restaurants (NPD Group, 2011). However, since there are so many restaurants available to consumers the more important opportunities are more centered around opportunities for small businesses and entrepreneurs to attract more consumers than their many competitors. One these opportunities is the traveler consumer base. “We believe the decline in travel-related restaurant meals over the last few years has been significant, due to less discretionary income available to consumers and business cutbacks on travel. However, as the recovery continues and businesses once again become willing to spend on travel, we think restaurants will see a modest uptick in travel-based traffic.According to the National Restaurant Association’s 2012 Restaurant Industry Forecast, published in February 2012, travelers and visitors in 2011 accounted for a median of 15% of sales at quick-service restaurants, 24% at casual dining establishments, and 30% at fine dining restaurants ” (Standard and Poor, 2012).
Another opportunity for entrepreneurs as well as established restaurants, is to fill the void of restaurants that reach out to places that they would not normally be able to be. One major way to do this is through kiosks and modernized vending machines. The few restaurants that have stepped out to make this move have seen success. For example in an article in Nation’s Restaurant News, this opportunity was discussed by highlighting the successful implementations of it from Sprinkles Cupcakes and Jamba Juice. Sprinkles Cupcakes opened up a “cupcake ATM” in Beverly Hills, CA. Customers can select the cupcake they would prefer on the touch screen and pay with a credit card at anytime of day. According to the article, the cupcake ATM alone sells over 1,000 cupcakes a day. Meanwhile, Jamba Juice begin new JambaGO outlets that we more based in elementary and middle schools, and have an expectation of $700,000 for the 2012 fiscal year (Jennings, 2012). These are all great opportunities that would attract a larger consumer base because their is still great room for restaurants to take advantage of it.
Another opportunity for entrepreneurs as well as established restaurants, is to fill the void of restaurants that reach out to places that they would not normally be able to be. One major way to do this is through kiosks and modernized vending machines. The few restaurants that have stepped out to make this move have seen success. For example in an article in Nation’s Restaurant News, this opportunity was discussed by highlighting the successful implementations of it from Sprinkles Cupcakes and Jamba Juice. Sprinkles Cupcakes opened up a “cupcake ATM” in Beverly Hills, CA. Customers can select the cupcake they would prefer on the touch screen and pay with a credit card at anytime of day. According to the article, the cupcake ATM alone sells over 1,000 cupcakes a day. Meanwhile, Jamba Juice begin new JambaGO outlets that we more based in elementary and middle schools, and have an expectation of $700,000 for the 2012 fiscal year (Jennings, 2012). These are all great opportunities that would attract a larger consumer base because their is still great room for restaurants to take advantage of it.
Work Cited:
Jennings, L. (2012, June 13). 3 automated restaurant innovations. Nation's Restaurant News, Retrieved from http://nrn.com/latest-headlines/3-automated-restaurant-innovations
NPD Group. (2011). U.s. restaurant count down by 5,551 from last year; independents declined by 2 percent and chain units remained stable. Retrieved from https://www.npd.com/wps/portal/npd/us/news/press-releases/pr_110124/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3g3b1NTS98QY0MLkzBDA0-PQKcAw1BzA4MQI_1I_Shz3PLG-gXZgYoAgkBuqg!!/
Yin, J. (2012). Industry surveys restaurants . Standard and Poor, Retrieved from http://www.netadvantage.standardandpoors.com.proxyau.wrlc.org/docs/indsur//pdf/rst_0612.pdf
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