LOCAL ECONOMIC SNAPSHOT | DALLAS-AREA RESTAURANTS
Restaurateurs hunger for more locations
By KAREN ROBINSON-JACOBS
Staff Writer [email protected]
By TOM SETZER
Staff Artist [email protected]
Even though bankers remain reluctant to open their purse strings for major restaurant projects, especially for start-ups and independents, angel investors and private equity are increasingly eyeing food service. That’s fueling expansion of new restaurant locations at a pace that outstrips the U.S. average. In North Texas, where eating out vies with shopping and sports for the top recreational pastime, the number of restaurants open as of last fall was up more than 14 percent compared with the fall of 2008.
No food shortage
Restaurant development in North Texas slowed to nearly a standstill during the economic downturn but recently has been piping hot. Some local real estate experts expect to see a record fourth quarter for 2012.
Food service and drinking places*
12,000 10,000 8,000
Houston-Baytown-Sugar Land Dallas-Fort Worth
Year-over-year change in restaurant growth for the last quarter of each year:
D-FW Houston Austin U.S.
3.9% 3.5% 2.6% 2.0%
’09 ’10 ’11 ’12
* Includes establishments of all sizes that are not government-owned, in the metropolitan statistical areas for Dallas, Austin and Houston
NOTE: For 2012 the third quarter was used because fourth-quarter figures for that year were not yet available.
More food in store
With shopping center construction on the rise, and investor money in hand, some local chains are planning growth of more than 10 percent for the next 12 months. Some examples:
Planned Current growth store over next count 12 months
35 49 301 232 232 43 151 40 82 11 570 25 25 100 73 70 12 35 8 15 2 70
Bringing home the bacon
Restaurant openings generally don't garner the kinds of headlines as plant openings, and restaurant operators do take heat for labor issues such as health benefits and hourly wages. Still, the nearness of successful eateries can help boost an area’s popularity.
71.4% 51.0% 33.2% 31.5% 30.2% 27.9% 23.2% 20.0% 18.3% 18.2% 12.3%
Restaurants by congressional district
WISE CO. DENTON CO. COLLIN CO.
Twin Peaks Restaurants Mooyah Burgers & Fries Dickey’s Barbecue Pit Red Mango Which Wich Paciugo Corner Bakery Café Boston’s the Gourmet Pizza Bennigan’s Cru’-A Wine Bar Wingstop
District 24 1,729
District 26 890
District 3 1,037 District 32 1,481
District 12 1,097
District 30 1,053 District 33 955
District 5 846
VAN ZANDT CO.
N 20 miles
District 6 1,053
*Includes restaurant chains based in Dallas-Fort Worth with at least 10 restaurants open as of May 20 and planned growth of at least 10 percent by June 2014. SOURCES: U.S. Bureau of Labor Statistics; Texas Restaurant Association; Dallas Morning News research
The bottom line
“Without a doubt 2012 will be off the chart, and Q4 will be a record. We’ll be over 5 percent [for the year]. For 2013, there was a huge explosion of activity as we came out of the chute. We’re seeing a lot of out-of-state restaurants expanding into our market.” “We have clients waiting on that prime, A+ site that doesn’t necessarily exist because the current operator is doing well. We tell people … you don’t have to be at Main and Main. If your food is good and the service is good, [diners] will come.” “Developers, not known to let an opportunity slip by, are busy adding to the restaurant landscape but it will take a while for some of the bigger projects to hit the market. Since restaurant success is tied to consumer confidence and disposable income, restaurateurs are hoping for an extended economic recovery.” Karen Robinson-Jacobs, staff writer, The Dallas Morning News
Jack Gosnell, executive vice president, partner, United Commercial Realty/Urban 67
Jeffrey Yarbrough, owner, bigInk PR, Marketing and Real Estate