Market Intelligence: Food service still growth industry
| Monday, Nov 09 2009 04:09 PM
Last Updated Monday, Nov 09 2009 04:09 PM
Kern County’s restaurant, bar and nightclub industry employs more than 16,000 people and makes $918 million in annual sales, according to data from Claritas BusinessPoint (2008).
As with most industries, restaurants have been impacted by the slowdown in the economy.
Restaurant annual sales dropped 5 percent in 2008 compared with 2007. The sectors most affected have been full-service restaurants and some fast-food categories like pizza, deli and fried chicken. Similarly, specialty coffee shops (like Starbucks) lost 8 percent in annual sales in 2008 compared with the prior year.
All is not lost! Hamburger and Mexican fast-food fared better over the same period, increasing their annual sales by 12 percent and 13 percent, respectively. Drinking places (bars and nightclubs) also increased annual sales in 2008, making an estimated $18.7 million, an increase of 7 percent over 2007.
The table below shows the estimated annual sales (2008) for each sector of the restaurant industry in Kern County. Similar performance is expected in 2009.
Industry sectors Annual sales (millions)
General eating places $142.7
Quick serve burger $188.4
Quick serve chicken $21.2
Quick serve pizza parlor $58.3
Quick serve sandwich/deli $47.8
Quick serve Mexican $46.3
Quick serve ice cream/yogurt $15.8
Quick serve doughnut $3.6
Quick serve snack/cookie/smoothies $5.5
American menu $16.6
Mexican menu $90.4
Italian menu $17.6
Oriental menu $51.5
Cafe/diner/family restaurant $104.3
Barbecue menu $14.3
Steakhouse $23.0
Other restaurant $1.6
Caterer/contract service $22.2
Coffee shop $29.1
Drinking places $18.7
Total $918.9
It’s no secret that fast-food is good business in Kern County. For example, 61 percent of Kern adults say they used a fast-food restaurant for dinner in the past 30 days. The table below lists the top 10 most popular fast-food restaurants, as noted by Scarborough Research (2009 R1).
Fast-food restaurants used for dinner in the past 30 days and percent of adults
Any fast-food restaurant 60.7
McDonald’s 16.5
Taco Bell 15.8
Panda Express 13.1
Kentucky Fried Chicken 12.5
Carl’s Jr. 11.5
Jack in the Box 10.0
Burger King 9.7
Subway 8.3
El Pollo Loco 5.7
In-N-Out Burger 4.1
Full-service restaurants also attract a high percentage of Kern adults. Close to 55 percent of Kern adults claim that they used a sit-down restaurant for dinner in the past 30 days. The table below lists the top 10 most popular sit-down restaurants, as noted by Scarborough Research (2009 R1).
Sit-down restaurants used for dinner in the past 30 days and percent of adults
Any sit-down restaurant 54.5
Red Lobster 7.4
Olive Garden 7.0
Denny’s 6.5
Sizzler 4.8
Elephant Bar 4.3
Applebee’s 3.5
Carrows 3.3
Chili’s 3.2
Black Angus 2.8
Mexicali Mexican Food 2.8
And how often do Kern adults eat out? Very frequently! The majority of Kern adults eat out at least once a week, especially for fast-food. The following table shows the monthly visits for fast-food and sit-down restaurants, as noted by Scarborough research (2009 R1).
Percentage of adults
Number of visits in a month Fast-food Sit-down
1 ... 8.2 ... 12.5
2 ... 10.9 ... 14.6
3 ... 13.0 ... 15.3
4 ... 11.5 ... 11.1
5 ... 7.9 ... 5.6
6-9 ... 22.6 ... 9.8
10 or more ... 18.1 ... 4.8
Key indicators for Kern’s restaurant industry show steady performance in 2009, compared with 2008. For example, employment in the food service industry has been almost even in 2009 at 16,800 compared with 17,200 in 2008, according to the U.S. Bureau of Labor Statistics.
Furthermore, the National Restaurant Association projects a 1 percent increase in sales nationally in 2009.
Sources: Scarborough Research (2009 R1), Nielsen-Claritas (BusinessPoint) and The Bakersfield Californian Market Research.
