Believe it or not, there is currently a downward economic trend in certain regions when it comes to quick-serve, fast casual restaurants. Some are calling it a restaurant recession while others are simply seeing contracted growth over the next 3 – 12 months depending on who you ask.

But as with every economic situation, there will be winners and losers. Yes, even in tough economic times, there are winners. But what are these winners doing in the restaurant game that keeps them from feeling the impact of the overall downturn? Let’s take a look at a few examples and see, shall we?

Differentiation of Menu

Few experts agree on what is the root cause of this current downturn. Whatever the reason is, it boils down to less people spending less money eating out. So to combat this trend, restaurants are creating more comprehensive value menus that hit the right price points and offerings that will keep people coming through the door.

Opening Smaller Locations

Expansion during a negative growth phase is risky, but sometimes necessary to continue competing against brands with greater cash flow. Some companies refuse to concede market share by not expand, so they are choosing to compete on a smaller scale – literally. By opening smaller locations with a somewhat limited menu, the brand can still gain ground and fans while not over-investing.

Ramping Up The Loyalty Programs

Loyalty now, means (usually) loyalty later. By offering up some decent rewards to loyal customers, brands are creating a solid customer base that will be there when the market does turn around. Rewarding customers is simple, effective and affordable when done right – and it creates a lasting connection with a brand that will be there through thick and thin.

Are these three approaches guarantees of success in a negative cycle for restaurants? no. In the QSR business, there are no guarantees. But, these approaches can certainly be great insulation against the downward trend and great investments for when things do turn around.

The point is to get creative and find resolve during downward trends. Look at the brands that have weathered decades of market fluctuations. They’ve become leaders in how to stay afloat when the weather gets rough. Look to them, and some new brands that are breaking rules when it comes to surviving the downturn.

Can you think of a few brands that have survived some major downturns in their segment? Let us know, in the comments, who they are and how they survived – and how they’re doing now!