Battle for 'Stomach-Share' Heats Up
NEW YORK -- The U.S. restaurant industry is bracing for another year of disappointing growth, as dining frequency is expected to drop slightly or remain flat over the next 12 months, according to a survey of 1,000 U.S. adults by business-advisory firm AlixPartners LLP. Restaurants--no longer able to count on growth solely by opening new locations--are facing a new reality that requires strategic brand differentiation, innovation in marketing and continued cost management.
"Moving forward, growth will be achieved through fierce competition for market share, or 'stomach share,' across and within segments in the restaurant industry. The winners will be those who have a firm grasp on the key drivers and influencers of consumers' dining choices, and implement targeted programs designed to drive growth in an uncertain environment," said Adam Werner, managing director at AlixPartners and co-lead for the firm's Restaurant & Foodservice Practice.
It is a deliberate expression of creativity that follows a scientific approach and a strategy that adds value and closes performance gaps. Relying on conventional techniques to reduce costs may fail to close performance gaps with a competitor because