2008 was a tough year for restaurant operators and it only seems to be getting tougher. According to Bureau of Labor Statistics, over 2.6 million jobs were lost in 2008, the worst jobs performance since 1945. With consumer sentiment at historical lows, retail sales in December 2008 were down 9.8% versus December 2007. Meanwhile, the outlook released last week by the International Council of Shopping Centers calls for a 6.1 percent decline in total retail sales during the first six months of 2009.
While it may appear that Chicken Little’s mass hysteria is prevailing, it is important to note that many quick service restaurant chains and franchisees have posted impressive sales growth. McDonald’s corporation reported 7.7% comparable-store sales growth in November. Burger King and Yum Brands’ business units Taco Bell and Pizza Hut have also posted strong growth. Based on conversations with several multi-unit Taco Bell franchisees using JobApp Network’s hiring management system, many units experienced 8-10% increases in comparable-store sales for 2008. Continue reading.
