Slow economic growth and continued high unemployment have limited the recovery in discretionary consumer spending, but steady improvement for the restaurant sector should continue according to Bob Bielinski , Managing Director and Head of the Restaurant Industry Practice at CIT Group Inc, (NYSE: CIT) cit.com, a leading provider of financing to small businesses and middle market companies. This topic is one of many discussed in the U.S. Restaurant Industry Outlook ( cit.com/vodcastbielinski), the latest in a series of in-depth executive video Q&As featured in the award winning CIT Executive Insights video series (cit.com/executiveinsights).
The initial public offering market in 2012 has been strong for restaurant companies. Burger King and Bloomin’ Brands, the parent of the Outback Steakhouse chain, are formerly public companies that had gone private and are once again public. The public market has also welcomed smaller companies, including Ignite Restaurant Group, Chuy’s and Del Frisco. Bielinski adds, “The exciting news is the access these smaller companies now have. In the past the market wouldn’t have been accepting of companies that small.”Social Media’s Impact—Jury’s Out on Daily Deal Sites Social media continues to have an impact on the restaurant industry, as Twitter and Facebook allow companies to communicate with their customers and customers to communicate with each other. Bielinski says, however, “The jury is still out on daily deal sites like Groupon. There’s a debate among restaurateurs as to the benefit of these sites. If Groupon customers simply chase deals and never become permanent customers―there’s not much benefit to the restaurateur.” Steady Improvement for the Sector in Sight According to Bielinski, while consumers are still spending, unemployment needs to come down for the sector to see meaningful increases in restaurant sales. He comments, “Consumers have a tremendous amount of choice in the restaurant industry. The strong operators, especially the fast casual players, are going to see continued solid sales and they’re going to continue to add units. In the aggregate I think we’re going to see steady but slow improvement in the sector.” EDITOR’S NOTE:Follow us on Twitter: @citgroup, on LinkedIn: LinkedIn.com/company/cit, on YouTube: YouTube.com/citgroupvideo, and on Facebook: facebook.com/citgroup. Individuals interested in receiving corporate news releases can register at cit.com/newsalerts or subscribe to the RSS feed at cit.com/rss. About CITFounded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $33 billion in finance and leasing assets. A member of the Fortune 500, it provides financing and leasing capital to its small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. CIT also operates CIT Bank (Member FDIC), BankOnCIT.com, its primary bank subsidiary, which offers a suite of savings options designed to help customers achieve a range of financial goals. cit.com Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50426598&lang=en