Analyzing the Restaurant Industry in 2014

Analysts exchanged views on the state of the restaurant industry in a teleconference that preceded the ICR XChange, a restaurant and retail investment conference, last Friday in Orlando. Frigid weather and middle- and lower-income wage decreases intensified by the Affordable Care Act have been the recipe for first quarter restaurant industry struggles. Despite these obstacles, many restaurants are seeing better numbers this year. Managing Director for equity research at Raymond James, Bryan Elliot, believes that the casual dining and quick service segments will be forced to continue to focus on value until middle- and lower-income families see more purchasing power. Analysts predict that technology-use will soar this year for both operational and consumer purposes. “The biggest challenge is transitioning from TV to mobile and Internet marketing,” predicts Elliot. Other trends? Fast-casual pizza is the “category du jour” and tiered value menus will continue to snowball.