10 Takeaways: Market Share
Chains in the Bakery-Cafe, Beverage-Snack and Limited Service Burger, Mexican and Sandwich and Specialty segments expanded their market share in the Latest Year.
1. Casual challenges
While the Casual-Dining segment lost market share in the Second 100, declining to 35.1 percent of Second 100 sales in the Latest Year from 35.8 percent in the Preceding Year, several chains grew share. Twin Peaks and Chuy’s saw the largest increases. Romano’s Macaroni Grill, which was sold in the middle of the year, had the largest market share decrease of the group.
2. Family affairs
The Family-Dining segment saw First Watch grab a market share gain of more than 1 percentage point in the Latest Year. Eight of the segment’s 10 chains grew their share of sales. But Friendly’s saw a significant market share loss when a franchisee in New York filed for bankruptcy and closed a third of its 36 locations.
3. Smash hit
Shake Shack, recently public and growing on a small base, led LSR/Burger market share growth. Similarly, public-investor-backed The Habit Burger Grill and privately held Freddy’s Frozen Custard & Steakburgers also grew market share. But Smashburger moved into the segment’s top spot, leading the category with 13.7 percent of LSR/Burger segment sales.
4. Crumbling crust
Of the seven brands in the LSR/Sandwich segment, only Quiznos lost market share in the Latest Year. The chain continued to close units after its Chapter 11 filing in 2014, and slipped from the segment’s top spot in the Preceding Year to No. 5 in the Latest Year. The chain’s U.S. systemwide sales fell from $342.2 million to $252 million.
5. Special in Specialty
Zoës Kitchen showed strong market share growth in the LSR/Specialty category, moving up a spot in the Latest Year to No. 6 among the category’s seven brands. The category’s top-ranked Dickey’s Barbecue Pit also gained share, along with Sarku Japan and Fazoli’s.
6. Snack attack
The Beverage-Snack category saw a modest increase in market share, rising to 6.6 percent in the Latest Year, from 6.3 percent in the Preceding Year. Half of the segment’s six chains gained share, with Tropical Smoothie Cafe leading the pack with a gain of 1.8 percentage points, followed by Smoothie King with a gain of 1.5 percentage points.
7. Border line
Café Rio Mexican Grill
The LSR/Mexican category remained steady, securing 5.9 percent of Second 100 sales in the Latest Year, with No. 6 Café Rio Mexican Grill posting the largest individual growth. No. 1 Taco John’s and No. 5 Baja Fresh Mexican Grill maintained their positions, but lost share in the Latest Year.
8. Rising bakery brands
Corner Bakery Cafe
Corner Bakery Cafe continued to lead the Bakery-Cafe segment, gaining market share in the Latest Year along with La Madeleine and Le Pain Quotidien. The category made up 5 percent of market share of Second 100 sales in the Latest Year.
9. Slice of the pie
Among Second 100 Pizza brands, Godfather’s Pizza’s estimated unit count fell 18.5 percent, to 449 locations in the Latest Year, from 551 units in the Preceding Year, pushing the chain down to the No. 3 spot. Meanwhile, Pizza Ranch, which led the group in market share growth rose to take the second-largest share of segment sales.
10. Losing streak
The Buffet/Grill-Buffet category saw its market share continue to slip in the Latest Year, falling to 3.1 percent, from 3.7 percent the Preceding Year. Sizzler took the No. 1 spot in the Latest Year from HomeTown Buffet, which, along with sibling concept Ryan’s, both saw closures after parent company Ovation Brands Inc. was acquired by Food Management Partners.