Toby Smith

Restaurants Hunger for Customers in Downturn

by Toby Smith   11/07/08

We asked our respondents which individual restaurant chains they'll be spending more and less money at during the next 90 days, and when we compared our results with the findings from our previous survey, three chains stood out from the pack.

In the high-end/casual category, Carrabba's Italian Grill is showing initial signs of improvement going forward.

In the quick casual/family category, Chipotle Mexican Grill (CMG) and Panera Bread (PNRA) are also showing early signs of positive movement.

And when we asked respondents to name their overall favorite restaurant, Chipotle and Carrabba's both showed gains since our previous survey.

On the downside, Red Lobster is showing the biggest decline going forward of any chain in the high-end/casual space. Similarly, when we asked respondents which restaurants they're least likely to go back to, Red Lobster showed a change to the negative.

In the moderate/casual category, Applebee's has also taken a decided turn for the worse.

As the economic gloom deepens, more and more consumers are thinking twice before they dine out. And when they do, they're paying extremely close attention to their spending decisions.

Our current restaurant spending survey results show the downward trend continuing for the restaurant industry -- with no immediate relief in sight.

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Toby Smith is the founder and editor of ChangeWave Investing and ChangeWave Inner Circle. Read his bio here.