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Good measure: what is success? Sales figures and customer evaluations often reach different conclusions.

Article Excerpt
There are myriad metrics by which to measure restaurant chains' performances: same-store sales, chainwide sales, number of locations open, number of units added and more.

Restaurants & Institutions' annual Top 400 Restaurant Chains report provides these and other success standards for the largest U.S.-based multiunit operators. In 2003, these 400 concepts had aggregate sales of nearly $218.1 billion, 5% higher than in 2002. Worldwide, these chains operated or franchised more than 244,000 locations in 2003, a 1.2% increase from the previous year.

As it has done every year since 1973, McDonald's reigned as the sales leader, with global systemwide revenue of $44.9 billion, four times the size of No. 2 chain KFC ($11.2 billion). A single day's worldwide sales by the Golden Arches system--approximately $123 million--match those for all of 2003 by 40-unit Copeland's of New Orleans, which ranks No. 186 among the Top 400 Chains.

But evaluate chain performance in other ways and McDonald's is knocked off its throne. Its estimated per-store sales of $1.65 million look like small fries compared with the $11.4 million average for Smith & Wollensky steakhouses or The Cheesecake Factory's $10.9 million average.

Evaluated as a business category, the Top 400 Chains' burger-menu segment averages $1.271 million in annual per-store sales. Casual-dining concepts take the top spot with a $2.565 million average. Steak/barbecue chains are close behind at $2.468 million, followed by Italian concepts (both limited- and full-service operations) at $2.32 million.

THE CONSUMER FACTORS

Judging chains' success solely by the numbers is an incomplete evaluation. Some may say the true test of a restaurant brand's worth is the quality of the dining...