Casual dining grew by +4.9 percent during 2016, ahead of the total market, which grew by +1 percent in the same period. The increase was entirely driven by store expansion outside London.
The negative performance in London is linked not only to the fierce competitive landscape of the capital, but also the significant increase in delivery options available to Londoners. In addition, there’s the constant fight for affordable space in the capital and the anticipated changes to business rates, which are expected to have a strong impact in London.
As a result, it is not surprising to see casual dining chains turning their attention to the rest of the country. Competition is still not as aggressive in other big cities, rents are much lower, and consumers are craving new options and welcome all types of chains. Under these circumstances, we expect to see casual dining chains carry on their expansion throughout the country and continue to outgrow the total market.
Since 1975 CREST®, NPD's flagship information service, has been monitoring all aspects of how consumers use restaurants and foodservice by rigorously tracking visits to commercial and non-commercial foodservice establishments. CREST arms manufacturers and operators with market dynamics from the consumer perspective, allowing them to monitor the total foodservice industry or examine specific segments, categories, chains, or food items. CREST tracks consumer foodservice usage in Australia, Brazil, Canada, China, France, Germany, Italy, Japan, Russia, Spain, the United Kingdom and the United States.