“Family restaurants face increasing competition from fast food and fast casual chains, which offer value based on low prices, convenience, and easily customizable options. More modern ambiance through restaurant renovations and redesigns, convenient breakfast items, and showing value by offering more BFY foods at budget-conscious prices are the ways forward for the segment if it wants to stave off the threat of QSRs and fast casuals.”
– Julia Gallo-Torres, Category Manager, US Foodservice Reports
This report looks at the following areas:
- Will restaurant renovations help revive the segment?
- Can family chains fend off breakfast daypart competition?
- Can BFY foods help family chains compete on value?
The US family midscale restaurant market experienced solid growth in 2012 and 2013 as post-recession spending power returned for many consumers, although the competitive landscape features numerous roadblocks to future growth in the form of competing concepts such as fast food chains and fast casual restaurants. While many consumers say flavor and affordability are top reasons to visit family restaurants, a number of respondents to Mintel’s consumer survey say they prefer to cook at home and that family restaurants are too expensive. Many report being motivated to visit family chains more frequently by value meals, as well as menu flexibility and an increasing number of healthy menu items.
This report covers these factors in detail, and offers close analysis of the following:
- How economic factors impact sales and potentially, the future of the market
- The role of demographics in driving sales, particularly families and younger consumers
- The competitive context of the market
- Shifts in menu item incidence
- The marketing strategies of leading brands, including a focus on digital advertising and social media
This report also features in-depth analysis of the results of Mintel’s exclusive consumer survey, including the types of family restaurants consumers are most likely to visit, who they visit them with, preferred characteristics of family restaurants, reasons to visit them, incentives to visit them more often, and why they do not visit them.
For the purposes of this report, Mintel has used the following definitions:
Mintel defines family restaurants as full-service restaurants with checks frequently less than $15 per person. Often, these restaurants have specialized meal options for children and do not sell alcohol. Examples include International House of Pancakes (IHOP), Cracker Barrel Old Country Store, and Denny’s.