We have begun to see little glimmers of hope on the economy from the news outlets, but is any of that translating into sales? Are chains still recession proof- and if so, does it make a difference if it is sit down or drive through?
We've talked before about how Mc Donald's was doing well in the economic climate, but this week Forbes reported on some sit down restaurants actually posting profits.
P.F. Chang's China Bistro Inc. said before the market opened that its profit rose 33 percent in its first quarter, far higher than analysts expected. The company, which operates the P.F. Chang's China Bistro chain and the smaller Pei Wei chain, also increased its guidance for the year.But it isn't all good news; Yum! Brands, who includes Pizza Hut and Taco Bell in its family of companies, saw a decline in first quarter profit. CNN Money has more:
Meanwhile, Brinker International Inc., which operates the Chili's Grill & Bar chain, also reported a profit in its fiscal third quarter, matching analyst expectations by controlling costs.
Yum Brands Inc.Thinking about opening a restaurant? This article from the Portland Small Business Examiner has some great advice in this article.(YUM) vows to "slug it out" with competitors in 2009 after reporting a 14% dip in first-quarter profit amid a decline in U.S. sales from increasing pricing competition and slumping dinner sales for its KFC and Pizza Hut brands.
Fast-food chains have been more resilient in the economic slowdown than casual-dining restaurants due to their lower-priced food and convenience. But the higher-priced chains are cutting prices to win back customers, leading some to believe that the quick-service industry may resort to a "zero sum industry" highlighted by intense competition for fixed pool of customers.
