Editorial Staff
By:style='mso-tab-count:2'> David Stevens
Until about a decade ago, visitors
to Collier County were given a limited number of dining choices. One could
choose a locally owned establishment or a quick meal at a local fast food
restaurant. Very few national chains gave Southwest Florida, particularly
Bonita Springs and Naples, a second glance because the market simply didn’t
have the year-round demand to allow a restaurant to sustain itself. The
seasonality of the area discouraged restauranteurs from this section of the
state.
In the last few
years, local residential growth has brought the population to a level that attracts
the national chains. Olive Garden, Red Lobster and Ruby Tuesdays pioneered the
area, followed by other well-known concepts like TGI Friday’s, Outback
Steakhouse and Carraba’s Italian Grill.
Restaurant growth
in our area today can be categorized as follows:
normal'>Influx of New National Chains
National chains not yet in Southwest
Florida continue to hear about the area’s favorable growth, either from
demographic reports or by tracking competitors’ sales. If their analyses meet
the chain’s criteria, these chains begin the process of seeking a site. Recent
market entrants include Charley’s Crab, IHOP and Friendly’s. Other national
notables considering the area at this time include Ruth’s Chris, Houston’s and
Morton’s.
normal'>Growth of Existing National Chains
Another category is chain
restaurants that already have a local presence and want to expand. These chains
have the advantage of already understanding the market, its labor base and
seasonality. Examples of this category are: Longhorn and Hops, who recently added
units in Naples; Outback, which is in the process of adding two or three units
in the area; and others like Perkin’s, Denny’s, First Watch, Applebee’s,
Macaroni Grill, McDonald’s, Taco Bell, Wendy’s and Burger King.
First Watch, a
popular chain of breakfast/lunch restaurants that started in California,
presents an interesting growth scenario in southwest Florida. With only 36
units located in six states, it doesn’t have the mass-market presence of a
multiple location chain such as McDonald’s or TGI Friday’s. Careful
consideration of location is crucial for survival. Their Naples location, which
has been open for 12 years, is the busiest in the entire chain. Four years ago the
chain opened its first Fort Myers unit and now has plans to open an additional
Fort Myers unit by September and another location in Naples in the near future.
normal'>Local Growth Within the Market
Local restaurant operators who want
to expand their businesses within the market make up the third category in
restaurant growth. These businesses have established a strong local following
and have created a favorable reputation. They have assessed the preferences of
local diners and have catered to them. For instance, although some restaurants
have developed a more cosmopolitan appeal, many have capitalized on the Florida
casual approach to fine dining. They strive to make the dining experience
comfortable, yet offer imaginative menus and quality presentations to attract
and maintain their upscale clientele.
Local restaurateur
Michael Hernandez, founder of Michael’s, Zoe’s, Bistro 821 and Bistro 41, plans
to soon open Aqua Grille, a new seafood concept in north Naples. Skip Quinlan,
known for Pazzo and Chops, recently opened Yabba’s on 5th Avenue
South in Naples. Another successful local growth story is the Sanibel Steak
House, owned by the Sanibel Restaurant Group. A location was recently opened in
Fort Myers, with two others planned in Bonita Springs and Naples by the end of
2000.
normal'>Challenges of Growth
When experiencing such rapid
growth, some growing pains are inevitable. With a national unemployment rate of
4.2 percent and an even lower 2.6 percent in Lee County and 3.8 percent in
Collier County, the restaurant industry is certain to feel the effects. For
every three people who move into the area, only one will enter the workforce.
If this continues, growth may be held in check. Some national chains may be
wary to open a unit if they are not able to staff it appropriately.
In fact, one
national restaurant that recently opened in Bonita Springs was forced to rope
off a dining section because it simply did not have adequate staff to service
the area. It is becoming increasingly difficult to recruit and hire from the
existing labor pool.
Additionally,
there is competition within the service sector. Restaurants, hotels and retail
centers are competing for the same pool of human resources. Restaurant owners
who use creative hiring practices or offer attractive pay and benefit packages
will be the most successful in maintaining and growing their operations. An
example of innovative recruiting practices may include hiring seniors as wait staff.
This type of thinking will allow restaurants to operate at their full capacity
and keep their profits at an acceptable level.
normal'>The Upward Trend Continues
With the area’s population growth,
particularly in the “dines-out-frequently” segment, continued restaurant growth
is inevitable. Residents in Naples and Bonita Springs will have more choices as
well as more locations of existing concepts.
Bon appétit.
normal'>David Stevens, CCIM is a principal with Grubb & Ellis|IPC, a
full-service commercial real estate company serving Southwest Florida.