If it's tough in the UK restaurant and bar market, just be thankful you aren't operating in the United States.
That seems a reasonable point of view. McDonald's, the very brand that epitomises the American eating-out dream, is in global decline. The US economy is stumbling. The ever-expanding American dining-out market looks in real trouble.
But if you believe it's all over for American restaurant chains, think again.
PF Chang's and the Cheesecake Factory are two operations regularly picked out as hot concepts worth watching – and with some justification.
Just this past week, PF Chang's, which operates around 65 PF Chang's China Bistros and five Pei Wei Asian Diners across the United States, posted fourth-quarter profits up to December 29 up by 30% to $115.9m. Same-store sales rose 5.4% against the previous quarter.
Meanwhile, the Cheesecake Factory, one of the most popular casual dining experiences across the Atlantic, reported restaurant sales for last year up 21% to $603.4m, including a 20% rise in the last quarter. Despite the pre-Christmas blizzards marginally more customers made it out to eat in its restaurants than the same time last year.
And these are not just two isolated examples of restaurant companies still doing well.
Which brings us back to McDonalds. It is not having such a good time: its first ever quarterly loss, falling sales, tumbling share price and major store closures. It is one of the great entrepreneurial success stories of all time, a true global brand – since 1955 it has reportedly sold 12 burgers for every human on the planet. But just as it approaches its 50th birthday, it is feeling the crunch of changing tastes, changing habits and changing attitudes, in particular in its domestic market.
The Subway sandwich chain, with its low-calorie alternatives, has now overtaken the Golden Arches as the nation's favourite restaurant. Service and food quality are issues now adversely affecting McDonald's standing with its domestic customer base.
And the moral? Simplistically, it's that the market is working, and for that we should be grateful. It may be brutal for some, even for the champions of the past. Reputations can count for little once the slide starts. But the new, innovative and exciting can still win out – no matter how tough the underlying conditions might seem.
The lessons for the UK market, in fact all markets, are there to be seen, and the examples should be only too obvious.
That seems a reasonable point of view. McDonald's, the very brand that epitomises the American eating-out dream, is in global decline. The US economy is stumbling. The ever-expanding American dining-out market looks in real trouble.
But if you believe it's all over for American restaurant chains, think again.
PF Chang's and the Cheesecake Factory are two operations regularly picked out as hot concepts worth watching – and with some justification.
Just this past week, PF Chang's, which operates around 65 PF Chang's China Bistros and five Pei Wei Asian Diners across the United States, posted fourth-quarter profits up to December 29 up by 30% to $115.9m. Same-store sales rose 5.4% against the previous quarter.
Meanwhile, the Cheesecake Factory, one of the most popular casual dining experiences across the Atlantic, reported restaurant sales for last year up 21% to $603.4m, including a 20% rise in the last quarter. Despite the pre-Christmas blizzards marginally more customers made it out to eat in its restaurants than the same time last year.
And these are not just two isolated examples of restaurant companies still doing well.
Which brings us back to McDonalds. It is not having such a good time: its first ever quarterly loss, falling sales, tumbling share price and major store closures. It is one of the great entrepreneurial success stories of all time, a true global brand – since 1955 it has reportedly sold 12 burgers for every human on the planet. But just as it approaches its 50th birthday, it is feeling the crunch of changing tastes, changing habits and changing attitudes, in particular in its domestic market.
The Subway sandwich chain, with its low-calorie alternatives, has now overtaken the Golden Arches as the nation's favourite restaurant. Service and food quality are issues now adversely affecting McDonald's standing with its domestic customer base.
And the moral? Simplistically, it's that the market is working, and for that we should be grateful. It may be brutal for some, even for the champions of the past. Reputations can count for little once the slide starts. But the new, innovative and exciting can still win out – no matter how tough the underlying conditions might seem.
The lessons for the UK market, in fact all markets, are there to be seen, and the examples should be only too obvious.
