Casual dining on the rise
New types of pieces expand appeal, versatility of category
By Jeff Linville -- Furniture Today, November 23, 2003
High Point — The casual dining category is growing with the addition of new, complementary pieces.
Once the kid brother to formal dining, casual dining now covers much more than dinettes and baker's racks. The tables and chairs come in many styles and are surrounded by a growing assortment of pieces, such as small chinas and buffets, wine racks and servers.
More traditional case goods companies are entering the market, too. Universal and Kincaid have introduced small dining sets with upscale looks. Canadian manufacturer and importer Magnussen Home now offers casual dining. Hooker Furniture says this is its fastest-growing category.
New directions in High Point
The casual dining menu offered plenty of choices at the October High Point market.
Ligo added seven groups, covering standard, counter and pub heights. Chromcraft introduced 14 sets, in addition to a new offering of outdoor furniture. Richardson Bros. expanded its four best-selling groups and now offers 21 tables, 32 chairs and 16 case pieces in maple, birch and oak.
Cramco added six groups to its wood/metal line. That gives the company between 250 and 275 sets, not including multiple tabletop options and finishes, said Dave Shock, national sales manager.
This year, retailers have been asking Cramco to add more baker's racks and pub sets, said Shock. Baker's racks have taken off since the company entered the category in a major way four years ago, and now it has added buffet/servers.
Canadel has grown its line so much that the Canadian producer expanded into a second showroom in High Point. The company moved into the former Vermont Castings showroom across from its own, adding 5,700 square feet for the Color Shop line. Canadel now has 18,000 square feet — more than half of the National Furniture Mart's third floor — and would like to expand in a couple of years to take over the entire floor of 32,000 square feet.
Canadel invested C$160,000 in renovating the showroom, said Jean Deveault, vice president of sales and marketing. This was necessary as the company added 105 new items to the Color Shop line and 61 to its core line. Deveault said Canadel had a half-dozen new chair designs, but with multiple leg options, that comes to 40 different SKUs, not including the 125 finish options.
The changes come as Canadel continues its steady growth. The company has had a double-digit sales increase every year since being founded in 1982, said Deveault, and should finish the year between C$165 million and C$170 million (about U.S. $126 million to $130 million).
The sales growth comes from more than just tables and chairs, he said, as case goods also are doing well. Chairs and stools comprise about 20% of Canadel's business, with about 25% in chinas, buffets and hutches. The corner buffet is hot both with a hutch and as a stand-alone piece, he said, with some using the buffet as a TV stand.
Opportunities in the kitchen
Furniture producers need to reassert themselves in the kitchen, contends Mike Peterson, president of Madison Square Furniture. Kitchen and bath specialists now are selling home furnishings, he said.
"They are getting into our industry, so let's start pushing back," he said. Furniture producers only make a profit of 1% or 2%, he said, but the kitchen and bath industry sees an 18% profit. And, he added, the kitchen and bathroom are the two most-renovated rooms in the home, providing a ready supply of consumers for furniture retailers.
Madison Square dedicated a portion of its High Point showroom this market to kitchen and bath furniture. The company introduced its first vanity sinks as well as kitchen islands and storage pieces.
Powell introduced three kitchen carts this market, a strong niche for the importer. Many ready-to-assemble sources also brought out new kitchen carts and islands.
These accessory items give homeowners greater versatility. Homes, even those scaled for middle-class families, are grander today, said Carla Mata-Sprinkles, vice president of marketing for Whitewood Inds. and its finished furniture line John Thomas.
New collections from John Thomas feature table bases with multiple top options, including shape, size and materials. Some feature leaves so that the table can expand and contract to meet the consumer's needs. The groups work in a large kitchen and dining area or in a smaller room, said Mata-Sprinkles, adding that some even put a small table and two chairs in a breakfast nook or as a coffee stop in a large living room.
Offering multiple finishes and fabrics gives the consumer ample choices and also protects domestic producers from the rising tide of imported goods. Importers can't keep enough warehouse space to offer all the SKUs that a domestic producer can make.
"Our strength is being able to stay ahead of the curve," said Deveault. "They can knock off a chair in a month, but they can't knock off the base, leg and color options we offer the consumer."
| Acknowledgements | ||
| Canadian correspondent Michael J. Knell contributed to this story. | ||
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