Independent Restaurants Fade As Global Chains Eat Up Market Share
Unique, independent restaurants are going the way of the dinosaur as chain restaurants continue to pick up market share at home and around the world.
That’s according to a recent report from NPD Group that reveals the number of independent restaurants in the US fell by 3% during the last year while chains enjoyed 1% growth, Bloomberg reports. And that trend is becoming global. A separate report shows fast-food chains are set to grow at breakneck pace around the world.
Independent restaurants have a hard time competing in economies of scale, yet they are able to avoid the bureaucratic expenses huge chains like McDonald's have to stomach. And while things aren’t looking good for mom-and-pop eateries, the recent overexpansion of fast-casual chains may have opened some room in the market for independent restaurants. [Bloomberg]