Indicators look bright for the Sunshine State

Nation's Restaurant News, Nov 27, 1995

Economic indicators are warming up for the Sunshine State, and most operators see tourism heating up as well.

And nowhere is the turn-around so marked as in Miami. After being hurt by Hurricane Andrew in 1992 and the negative publicity following violence against tourists in 1993, South Florida's tourist destinations once again are showing robust increases. Several large hotels reported much higher occupancy rates this summer than last, and Miami International Airport saw strong gains in both domestic and foreign arrivals. Nearby Broward County also is exhibiting strong signs of growth, especially the western portion of the county.

"Everybody is coming down here; the restaurant competition is getting fierce," reports Reginald Timoteo, president of R.J. Gator's Inc., operator of eight restaurants in Florida.

"We anticipate maybe a 3 or 4 percent increase in sales next year. Good sites are hard to come by, and good help is even harder to find."

The favorite activities of tourists in Florida haven't changed much in recent years, according to a recent study by the Florida Department of Commerce.

Interviews with 4,585 domestic air travelers indicated that their No. I pastime is shopping and going to restaurants, a statistic that sits very well with operators.

The report also showed that Dade County resumed its No. I ranking among the state's destinations for air travelers, with a 16.9-percent share. The Orlando-Walt Disney World area was No. 2, with 16.3 percent.

During the past year the Orlando area was a buildup of employees - 3,000 positions to staff Disney's Wild Animal Kingdom and its planned hotels - in addition to 4,000 temporary construction jobs already being generated by the new theme park.

Planned expansions at Walt Disney World and its neighboring Universal Studios are expected to add some 14,000 jobs in the next decade.

"We've been noticing a steady increase in the economy and our customer base in Florida, and there seems to be a rash of new customers," says Gennaro Sbarro, vice president of franchise and development for Sbarro Inc.

"A lot of the business is coming from tourists, but a lot is coming from the local customer."

Other markets, such as the Tampa/St. Petersburg area, are proving lucrative to restaurateurs as well.

"The strongest spot for us in Florida has been Tampa," says Bruce Mosby, senior vice president/east division for Long John Silver's Inc.

"Tampa has consistently shown increases year after year. it has been very steady. We have been wondering if to some extent the tourism that left Miami a few years back might have shifted to Tampa."

Many of the Florida units for Lewisville, Texas-based Grandy's Inc., also are located in the Tampa/St. Pete region.

We've got our Florida stores going through a major remodeling in anticipation of the upcoming season,- says Brian Hunt, director of franchise sales for Grandy's.

"We are doing some extensive cosmetic changes on the stores in terms of signage, tables, booths, chairs and a whole new color scheme. We believe in Florida, and that's why we're pumping money back into it."

Hunt says he would love to develop the Jacksonville market.

"I'd really like to put a few stores in Jacksonville, Fla., because demographically it fits our client base and I'd think we would do real well there," Hunt adds.

For Woody's Bar-B-Q Inc., sales are strongest in central Florida.

"The central part of Florida is the strongest portion of our market right now," says William Moon, vice president of franchise development for 32-unit Woody's.

"I think the region performs so well because it's not so dependent on seasonality. It's a pretty steady market, and when the tourism is up, that also provides a kick."

Moon also points to less restaurant competition in the central part of the state as a factor.

The restaurant industry in Florida is the state's largest nonagricultural employer, with the estimated 43,000 restaurants employing more than 500,000 people.

The Florida Restaurant Association, which represents the burgeoning industry, recently saw some major changes among its ranks.

In October the FRA introduced its new chief executive, Carol Dover, to its members at the 1995 Southeastern U.S. Foodservice Expo. Dover succeeded Manny Mighdoll, who had led the powerful organization since 1987.

Dover, who had previously served as chief of staff for former Florida governor Bob Martinez, made her presence known quickly by moving FRA's headquarters from Hollywood to the state capital in Tallahassee.

"We wanted to increase our presence and visibility with the Florida Legislature," says FRA's communications manager, Stuart Reese. "That is where we can make the biggest impact."

When it comes to impact, many operators point to cobranding as the latest trend to blaze a red-hot trail in the Sunshine State.

"In Florida the really big thing right now is co-branding," says Joe Caruso, director of franchise development for Rocky Mount, N.C.-based Hardee's Food Systems Inc.

"We are working with a number of oil companies in Florida that are becoming franchisees. We look at our restaurant sales, and a lot of them are coming from big tourist areas and interstate locations. It just makes sense to be in those locations."