Forecasting sales of $683.4 billion for 2014, which equate to 4% of the U.S. gross domestic product, the restaurant industry continues to showcase its major importance as an indicator of an upward sloping economy. The industry comprised of a wide array of diversified service provides such as fine dining, casual dining and family dining (Full Service Restaurants), as well as fast casual and fast food (Limited Service or Quick Service Restaurants ) is highly cyclical, season and ultimately driven by social aspects dictating eating habits. As a result, the industry is under a current major overhaul to shift into health conscious, more affordable concepts, which in turn can produce a wider bottom line for the operator.
In concordance with this shift, major growth within the restaurant industry will continue to come from the fast casual segment, which was popularized by concepts such as a behemoths Panera Bread and Chipotle. In 2013, the segment experienced a strong growth of 11% and realized a gain in market share totaled at 15% of the $231 billion limited-service restaurant segment.
“This major shift has two essential connotations, first there exist an abundant of concepts that were designed specifically to cater to a fast casual market; as such they’re poised to embrace the future growth forecasted for the industry. Secondly, you have major chains in other segments seeking to transition into the faster growing markets which in turn can provide wider margins for profit. “Stated Gonzalo Lopez Jordan and Santiago Steed, managing directors at Patagonia Financial Holdings, a prominent Miami based private equity firm.
The shift is being quickly noted by major brands in the industry. Darden Restaurants, a casual restaurant empire just announced its sale of Red Lobster for $2.1 billion in cash. Additionally, Taco Bell announced a fast-casual concept in Huntington Beach, Calif., which will be named U.S. Taco Co. with average ticket prices sourced at around to $12 or $13.
“Innovation is always the key driver of growth. We saw major growth in this industry in its infancy years with new concepts such as Chipotle, however in future years concepts must innovate even further and exploit other underdeveloped food choice such as fish” said Gonzalo Lopez Jordan and Santiago Steed.
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Patagonia Financial Holdings is a private equity firm headed by Gonzalo Lopez Jordan and Santiago Steed .The firm has over $500 million of deployed capital, primarily focused on structuring value-oriented and special situation investments.
Based in Florida, American Regional Center Group LLC (ARCG) was founded in partnership with Patagonia Financial Holdings LLC (PFH) to provide sound and reliable EB-5 investment opportunities for foreign investors and their families who wish to obtain permanent residency in the United States.
Patagonia Financial Holdings is headquartered at 1200 Brickell Avenue, Suite 1950, in the heart of Miami’s Financial District.
For more information, please visit www.patagoniafinancial.com