Casual Restaurants Industry Overview

  • SIC Code5812
  • NAICS Code722511

Industry Excerpt

Companies in this industry provide food services in casual atmospheres to seated patrons who are served by wait staff and pay after eating. Major companies include Bloomin' Brands, Brinker International, and Darden Restaurants (all based in the US), along with Cara Operations (Canada), The Restaurant Group (UK), and Skylark (Japan).

Competitive Landscape

Demand for casual dining is driven by personal income, consumer tastes, and demographics. The profitability of individual companies depends on sales of high-margin items and effective marketing. Large companies have advantages in marketing, purchasing, and access to capital. Small companies can compete effectively by offering superior food or customer service. The full-service restaurant industry is highly fragmented: the 50 largest companies account for about 20% of revenue.

Products, Ops & Technology

Products include appetizers, entrées and main dishes, desserts, and beverages. Some establishments specialize in particular types of cuisine, while about half of casual full-service restaurants serve general American fare, according to Mazzone & Associates. Popular specialties include breakfast foods, Italian food, seafood, and Asian cuisine. Alcoholic beverages, including beer, wine, and spirits, account for about 15% of full-service restaurant sales.
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