A Cornell study found that a 1% increase in customer satisfaction can boost restaurant sales by $1.3 million. Technology plays a big role in this trend.
In October 2014, the Current Situation Index was 103.1, up from 101 in September. The Expectations Index was 102.9, higher than 100.9 recorded in September.
There are three valuation methods you can use to value a restaurant stock. The most widely used valuation approach under market approach is the price-to-earnings ratio.
The benefits of the franchise model include the opportunity for the company to grow faster because the franchisee provides the capital for making the restaurant ready for operation, and the franchisor faces lower risk if the store underperforms.
Several restaurants are focusing on changing their restaurants’ images by remodeling their existing stores. For example, Burger King’s (BKW) already re-imaged stores have boosted sales by 10% to 15%.
The two most important drivers of revenue in a restaurant business are same-store sales and unit growth. Same-store sales growth measures the growth at existing stores or locations over a period of time.
Family-dining restaurants offer full table service. They’re similar to the casual-dining format, although most family-dining restaurants don’t offer alcohol.
Family dining restaurants offer full table service. They’re similar to the casual-dining format, although most family dining restaurants don’t offer alcohol.
Contrary to fast food restaurants, casual dining restaurants have a relaxed and casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service.
Darden’s Olive Garden and Red Lobster brands are losing guests Darden Restaurant Inc.’s (DRI) same store growth and expense breakdowns suggest the company needs to follow a different strategy. With some price cuts, guest count is falling for its Olive Garden and Red Lobster brands. Without a price cut, however, the company would have likely […]
Restaurant industry breakdown The first thing investors should do before making an investment is understand the company’s industry, business, and strategy. We can broadly break the restaurant industry down into the limited-service and full-service sectors. Full-service restaurants are establishments where customers receive their meals at their table, receive table waiting services, and generally pay at […]
More efficient food delivery The benefits of using tablets and technology extend beyond just table coverage for companies like Brinker International Inc. (EAT) and DineEquity Inc. (DIN), and possibly for Cheesecake Factory Inc. (CAKE) and Buffalo Wild Wings Inc. (BWLD) in the future. Combined with location pinpoint technology like RFIDs (radio-frequency identification), tablets can help […]
Customization and smaller dishes From Nikki to Starbucks and Chobani to Chipotle, customization appears to be the trend. With a tablet menu at the table, guests can take their time to decide on what ingredients they want in their dish without the necessary pressure of a waiter at their table—especially during busy hours at casual dining […]
