American chains
American chains restaurats had a tough year and 2019 looks worse.
After facing stagnant sales and weak customer traffic in 2018, U.S. restaurants will encounter more
headwinds next year, including rising food and wage costs, that may stall profit and hinder efforts
to jump-start growth.
Even the industry stalwarts are dealing with such issues in a fiercely competitive and increasingly
crowded field. Starbucks Corp. is shuttering some U.S. locations amid over-saturation worries.
McDonald's Corp., the world's largest restaurant company, has been tweaking its value offering to
stay relevant in the price wars and expanding delivery with Uber Eats to spur sales.
It wasn't all doom and gloom this year. Amid a stock market rout, restaurant stocks fared better
than the broader market, bolstered by a couple of standouts like Domino's Pizza Inc. And Chipotle
Mexican Grill Inc...
Here's a look at issues-both obstacles and opportunities-facing the restaurant industry in 2019.
-Delivery
Americans are demanding delivery, and it's forcing big chains to get into the game. That can mean
costly technology investments. Revenue from orders through third parties is often shared, making it
more difficult to turn a profit on digital customers.
-Customer Data
Delivery, especially from third parties like Uber Eats and GrubHub Inc., is creating a massive log
of diner data. More data means chains can carefully curate ads to lure customers back. The
nformation may also lead to better menus as restaurants tailor their food according to "real-time
shifts in eatign patterns," said RBC Capital Markets analyst David Palmer.
Source from APP <流利阅读>
After facing stagnant sales and weak customer traffic in 2018, U.S. restaurants will encounter more
headwinds next year, including rising food and wage costs, that may stall profit and hinder efforts
to jump-start growth.
Even the industry stalwarts are dealing with such issues in a fiercely competitive and increasingly
crowded field. Starbucks Corp. is shuttering some U.S. locations amid over-saturation worries.
McDonald's Corp., the world's largest restaurant company, has been tweaking its value offering to
stay relevant in the price wars and expanding delivery with Uber Eats to spur sales.
It wasn't all doom and gloom this year. Amid a stock market rout, restaurant stocks fared better
than the broader market, bolstered by a couple of standouts like Domino's Pizza Inc. And Chipotle
Mexican Grill Inc...
Here's a look at issues-both obstacles and opportunities-facing the restaurant industry in 2019.
-Delivery
Americans are demanding delivery, and it's forcing big chains to get into the game. That can mean
costly technology investments. Revenue from orders through third parties is often shared, making it
more difficult to turn a profit on digital customers.
-Customer Data
Delivery, especially from third parties like Uber Eats and GrubHub Inc., is creating a massive log
of diner data. More data means chains can carefully curate ads to lure customers back. The
nformation may also lead to better menus as restaurants tailor their food according to "real-time
shifts in eatign patterns," said RBC Capital Markets analyst David Palmer.
Source from APP <流利阅读>
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