A growing number of Philadelphia restaurants and food brands are making moves to flesh out their national presence as the hospitality industry looks to right itself from the effects of COVID-19. That includes endeavors from high-profile restaurateurs in the local scene, including Stephen Starr, Jose Garces and Michael Solomonov, the Philadelphia Business Journal reports.
Focusing on national expansion is a move that allows Philadelphia brands to get in front of a larger customer base while exploring ways to diversify growth models, such as through franchising or corporate partnerships.
Local brands making a national push is a trend happening in markets across the country, said David Klemt, director of business development at KRG Hospitality, a restaurant start-up and development consulting agency that operates in Canada and the U.S., including in Greater Philadelphia. Despite the financial toll of the COVID-19 pandemic, the hospitality industry is not slowing down, Klemt said, noting that it may seem counterintuitive that many restaurateurs are currently looking to invest funds and resources to expand.
“Right now we’re seeing that a lot of operators are taking the opposite tack, like this is the perfect time to expand,” Klemt told PBJ.com. That’s in large part because of the real estate opportunities that came online because of closures during the pandemic, according to Klemt, as National Restaurant Association data indicates more than 90,000 restaurants temporarily or permanently closed amid the health crisis.
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There’s also significant pent-up demand as customers seek out new brands coming to their cities, Klemt noted. Local restaurateurs must take care to manage risks associated with going national such as by making sure they engage with and seek feedback from the communities they’re entering via activations like pop-ups. Klemt also recommends thorough feasibility studies to identify optimal locations and chances of success when breaking into a new market.
Read more about the growing Philadelphia food scene and the plans the brands of Starr, Garces, Solomonov and even Wawa have at PBJ.com.
Get all of your business news at the Philadelphia Business Journal.
