With the economy continuing to slow in most market segments, our business outlook at Maverick continues to be solid and is showing signs of increasing over the previous 12 month time frame. Obviously as fuel costs continue to increase along with food costs, many consumers tend to spend their income in local restaurants in lieu of destination vacations, large consumer products and expensive grocery products. The hospitality industry has traditionally seen modest gains in food and beverage sales during tough economic times. However, this time around it does not seem to be across the board improvement. Specific national locations, businesses with high volume liquor to food ratios and concepts that have a great quality to value perception are the only gainers.
Over the past five to seven years, the restaurant business has seen an explosion of new concepts, new owners and to be honest - an overall lack of quality for the consumer. The rash of franchised concepts to owners and developers that do not know the restaurant business has created an over-saturated market. Fortunately, in my opinion, the slow times we see now remove some of the poorer operated and poorly conceived concepts in the marketplace. We are seeing this play out in the closings, consolidations and slowed development plans for many national and local players.
The owners and developers that are currently purchasing concepts and locations or moving forward with expansion plans - will be the ones ahead of the game when the market opens back up in the next 12 to 18 months. The current lease deals for expansion and land costs are down now as can be expected - thus creating a development value as well as positive long term lease deals.
As always....great food, great service and great atmosphere will continue to drive great concepts. Now more than ever - it is incredibly important.
"If God had wanted man to play soccer, he wouldn't have given us arms!" Mike Ditka
Raymond R. Schaefer, AIA/NCARB/IIDA
President/Founder
Maverick Architecture & Design, LLC
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