ARE DINERS FUTURE PROOF?
Pretty much every business is constantly under pressure to evolve.
Restaurant owners have had to adapt to the rise of fast-casual, 3rd party delivery, order automations, focused menus, declining revenue per square foot, etc.
Yet one business that hasn’t partaken in any of this?
DINERS.
Hear me out...
Nobody walks into a diner looking for a high class experience, a culinary masterpiece, or expects their order to be processed via touch-screen kiosks.
In fact, we expect the opposite:
• A waiter/waitress taking your oder on a pen & paper
• A large menu with “something for everyone”
• Counter-service where you see the regulars
• A comfy booth to sit at with your group
The food needs to taste good and “hit the spot”, but there’s no expectations of a 5-star meal.
They appeal to families, late night crowds, working class people, groups of friends rehashing their epic night out…
Anyone is welcome at a diner.
Diners are iconic establishments that don't have to play by the same rules as everyone else.
While they may never “move forward” per se, they seem insulated from any meaningful disruption that would move them backwards.
If franchises can offer any view into the world of mom & pop diners - just look at IHOP:
• 1,658 locations as of their latest FDD
• 2023 systemwide revenue of ~$3.5 billion (back to pre-covid levels)
• Systemwide revenue is up ~33% aka $1 billion since 2010
Said differently, they've been growing slowly and steadily for the last decade+.
The other franchise that is comparable to a diner is Denny's - which has seen more closures as of late after covid struggles.
But even Denny's still has close to 1,500 restaurants operating
As a New Jersey native aka the diner capital of the world - I certainly hope they never go out of style!