0 Comments
A sea of change for seafood
Although seafood has always occupied a lonely corner of the QSR market, population shifts and changing consumer tastes could give a boost to the fast-food seafood industry.
 
According to the U.S. Department of Commerce, seafood consumption in the United States has increased nearly 6 percent over the past five years.
 
Americans ate 16.5 pounds of seafood per capita in 2006, about 2 percent more than in 2005, and close to the record of 16.6 pounds of seafood per person set in 2004, according to Department of Commerce figures. Overall, Americans ate nearly 5 billion pounds of seafood last year.
 
That figure is likely to rise, and that's good news for operators of seafood restaurants.
 
"A trend that we really like is that while Americans may consume about 16.5 pounds of seafood each year, Latino populations consume close to 30 pounds of seafood each year and Asian populations are comparable to that as well," said David Head, president and chief operating officer of Nashville-based Captain D's. "These trends that are emerging in our society play to our strengths, and we are excited about that."
 
According to the U.S. Census Bureau, the Latino population in the United States is projected to rise from 35.6 million in 2000 to 102.6 million by 2050, while the Asian population is projected to rise from 10.7 million in 2000 to 33.4 million during the same period. 
 
Captain D's, which booked revenues of about $500 million in 2006, is preparing itself to ride that wave.
 
The 37-year-old chain has embarked on a campaign to update the look of its restaurants and has revamped its menu to include pasta and grilled seafood items as well as the traditional battered fish, french fries and hush puppies.
 
Menu additions include dishes such as grilled tilapia, wild Alaskan salmon and skewered shrimp, and more than a dozen new side items that include garlic mashed potatoes, fried okra and lemon-herb rice.
 
The chain's revised menu earned it the 2007 Nation's Restaurant News "MenuMasters Award" in the category of "Best Menu Revamp."
 
"I was surprised because I didn't think the industry was dialed into Captain D's to that level," Head said.  "It was really nice and made everybody here very proud."
 
Menus changing to meet customer tastes
 
Not every operator is sharing in the good fortune. The number of locations operated by category leader Long John Silver's has fallen to 1,121 in 2006 from a high of more than 1,300 in the 1990s.
 
Sales at the brand, owned and operated by Louisville, Ky.-based Yum Brands Inc., have been flat for the past three years, hovering at around $800 million per year.
 
Many of the fast-food seafood operators that are finding success, however, are those who have adapted their menus to meet a demand for healthier dishes, said Maria Caranfa, director of Chicago-based consulting firm Mintel Menu Insights.
 
"In the QSR world in general, many fast-food restaurants are adding healthier items to their menus," Caranfa said. "If a fast-food operator doesn't have those options, it may deter customers from coming to their restaurants."
 
story continues below... advertisement
 

 
This story and all of our great free content is supported by:  
Mid-Atlantic Expo   Food Show | Mid-Atlantic Food Beverage & Lodging Expo An annual restaurant/hospitality tradeshow that features manufacturers, distributors and brokers with samples and demonstrations of food, beverages and services for sale to the region's hospitality industry. Featuring special events, speakers and free admission for foodservice professionals!    

 
 
Despite the current focus on health and an overall trend in the restaurant industry toward trans-fat-free cooking oil, few seafood operators have made the switch.
 
Seattle-based Ivar's Seafood Bars, operator of 25 quick-service seafood restaurants and three full-service restaurants in the Seattle area, changed to trans-fat-free oil about a year ago.
 
"I am proud of the fact that Ivar's has always been a leader," said Dave Fechter, director of operations for Ivar's Seafood Bars. "We have tried to be healthy and understand what customers are looking for."
 
But restaurants can take advantage of other seafood trends, such as fish tacos and southwestern menu items, Caranfa said.
 
"Wahoo's Fish Tacos has had a great deal of success, and I read today that Baja Fresh is coming out with shrimp tacos, so there could be some trendier menu items they could offer," she said.  "Long John Silver's has had some success with premium menu items, such as their Lobster Bites."
 
Several operators are experimenting with dual-branded locations as a way to boost business. Yum Brands has been pairing Long John Silver's with its A&W and Taco Bell concepts, but their success has been hard to track.
 
Nashville-based Sagittarius Brands, parent company of both Captain D's and the Mexican fast-food chain Del Taco, opened its first co-branded location in August.
 
"Captain D's is primarily a southeastern brand, and Del Taco is primarily a West Coast brand, but we feel both will travel very well," Head said. "Co-branding is not something we see as a dominant part of our business plan, but we feel it can be a strong part of our company."
 
 

Related Content

Reader Comments

Add a Comment

We welcome your thoughtful comments. All comments will display your real name.

Want to participate in the discussion?

Or log in for complete access.

  • Clear
  • Post
Be the first to post a comment for this story.
Products & Services

Scotsman Ice Machines

http://global.networldalliance.com/new/images/products/4869.png

4869/Scotsman-Ice-Machines

LG M3704CCBA - 37" class (37.0" measured diagonally)

http://global.networldalliance.com/new/images/products/4316.png

4316/LG-M3704CCBA-37-class-37-0-measured-diagonally

MVR Reports

http://global.networldalliance.com/new/images/products/MVR_Report_iix.gif

1252/MVR-Reports

Print Supply Chain Management Services

http://global.networldalliance.com/new/images/products/4497.png

4497/Print-Supply-Chain-Management-Services

Menu Innovation and Ops Simplification

http://global.networldalliance.com/new/images/products/4238.png

4238/Menu-Innovation-and-Ops-Simplification

Delfield Refrigeration

http://global.networldalliance.com/new/images/products/4873.png

4873/Delfield-Refrigeration

POP Design

http://global.networldalliance.com/new/images/products/4801.png

4801/POP-Design

The New Mark 9 Restaurant Environment

http://global.networldalliance.com/new/images/products/4240.png

4240/The-New-Mark-9-Restaurant-Environment

Marketing and Creative Services

http://global.networldalliance.com/new/images/products/4491.png

4491/Marketing-and-Creative-Services

Custom iPad App

http://global.networldalliance.com/new/images/products/4984.png

4984/Custom-iPad-App

Foodservice Social Media Universe
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.
Infographic: Top 12 Benefits of Digital Menu Boards