News

Micro chains hit major US growth spurt

July 31, 2017

Micro-chains — defined as chains with anywhere from three to 19 units — are in a major growth spurt, according to information research and analysis firm, NPD Group. The company said that although independent restaurants with two or fewer locations have declined 4 percent in number from last year, NPD's data show micro-chains are having a moment, especially in major U.S. cities, a news release said. 

In the last year, micro-chains in major cities have grown: 

• 5 percent in Dallas-Fort Worth.
• 4 percent in Orlando.
• 3 percent in Atlanta and Washington, D.C. 
• 2 percent in Houston, Los Angeles and San Francisco.
• 1 percent in Chicago. 

In New York City and Philadelphia, micro-chain growth was flat, NPD said, and in Boston, the number of micro-chains dropped 2 percent. 

"Micro-chains are bringing to the restaurant scene a new attitude and perspective," NPD Supply Track Vice President Annie Roberts, said in the release. "Many are successful because they have their finger on the pulse of today's restaurant consumer. They are often locally-based and offer their customers a creative concept, great food, and an enjoyable experience. What's not to like?"  

Micro-chains also fared best among restaurant chain systems, including small and large chains, for number of orders placed and spend with U.S. broadline foodservice distributors, increasing spend by 5 percent and orders by 3 percent during Q1 2017.  In comparison, the total dollar spend for all restaurant and retail foodservice operators with major broadline foodservice distributors was 2 percent, while cases ordered were up 1 percent.  

Photo: iSTock