News

Independent restaurant count down 2 percent

August 22, 2018

NPD reported today that a 2 percent decline in U.S. independent restaurant brands contributed to a 1 percent drop in the nation's overall restaurant count this spring over last spring. The U.S. restaurant count reached 660,755 as of March 31 this year, the data and research company said in a news release.

The company said chain restaurant numbers actually grew to 307,940 units, which kept the total chain count flat compared to spring 2017. The total number of independent restaurants stood at 352,815 units though, a decrease of 5,719 units from last year, with most of that drop happening in the area of independent QSRs, casual, family and fine-dining restaurants, which all dropped a percentage point year over year. 

"The restaurant unit declines we captured in our spring 2018 census are reflective of the sluggish restaurant traffic the industry has been experiencing over the last several years," NPD Vice President Annie Roberts, said in the release. "It takes a lot of resources and capital to withstand tougher times, and an experience and offering that keeps customers coming back."

Total QSR units this spring stood at 357,766, while full-service restaurant units - including casual, family and fine dining restaurants, totaled 302,989. No data was provided from the company on fast casual brands, which appear to have escaped the declines seen in all other sectors.  

On the brighter side, although the number of U.S. independents is down, this sector represents more than half of all U.S. commercial restaurants. Additionally, independent commercial restaurant operators are expected to spend $43 billion with foodservice manufacturers and broadline foodservice distributors in 2020, a 3.4 percent compounded annual growth rate over 2018. In fact, independents will represent 15 percent of total restaurant operator spend, according to NPD.

Finally, in the year ending June 2018, cases shipped from broadline foodservice distributors to independents increased by 4 percent.