Restaurants Still Closing

Nation's Restaurant News is reporting a 1% decline (or 5,204 restaurants) have closed since spring of 2009. The biggest hit? Independents- who make up about 54% of the market- saw the largest drop. Chains lost only 164 locations, despite closings from brands such as ESPN Zone, Fuddruckers, and Uno Chicago Grill.

NPD’s CREST research service reported that visits to restaurants in the United States declined by 3 percent for the 12 months ended in May 2010. Consumer spending at restaurants fell 1 percent in that same period, the first decline in dollars the firm has reported since it began tracking foodservice industry sales in 1976, NPD said.

Independent restaurants have suffered sales and traffic declines as prolonged high unemployment has weakened consumer spending in many areas of the country, creating less revenue from which operators can fund crucial investments in marketing or equipment.

Who is still open and thriving? Burger joints and wing places are still hot. Five Guys Burgers and Fried are expanding and Wingstop reported its 28th quarter of increased same-store sales! It would appear that familiar, comfort-type foods are still in.

Further Reading:

Bloomberg on the closures.