N@N

NEW YORK--([ BUSINESS WIRE ])--The prolonged recovery of the U.S. economy has forced restaurateurs to adapt to a anew normal,a one in which they are now more efficient and innovative as they have learned to deal with a difficult sales and profit environment. This is one of many topics discussed in CITas [ a2012 U.S. Restaurant Industry Outlook,a ] featuring [ Bob Bielinski ], Managing Director and head of the Restaurant Industry practice for [ CIT Group Inc ]. (NYSE: CIT) [ cit.com ], a leading provider of financing to small businesses and middle market companies.

"M&A activity was good in 2010 and accelerated in 2011, making it an extremely strong year"

The interview is part of the latest installment of CITas award-winning [ a5 Minute Capitala ] ([ 5minutecapital.com ]) podcast series, featuring senior CIT executive commentary on current market conditions and industry trends.

Consumer Experience Has Improved

According to Bielinski, as restaurant companies competed for market share during the prolonged recovery of the U.S. economy, they were forced to get more efficient and innovative as they dealt with the difficult sales and profit environment. aAs a result, consumers saw improved quality on food, new product offerings, and value pricing,a says Bielinski. aIn turn, customers are going to keep that better restaurant experience, and the companyas profit margins should be increased when business improves.a

Fewer High-Profile M&A Deals

aM&A activity was good in 2010 and accelerated in 2011, making it an extremely strong year,a says Bielinski. aFor 2012 I think you are going to see a slower pace than you have over the past two years. There will be fewer headline transactions because of the dramatic turnover thatas already taken place in private equity portfolios.a

Access to Financing

The outlook for 2012 is that funding will be readily available for restaurant companies and franchisees. aI think debt for large- and middle-market restaurant companies will be readily available in 2012, just like it was in 2011,a says Bielinski. aAfter a volatile fall and winter, the debt markets closed 2011 in very strong fashion. So long as there isnat an economic downturn in 2012, lenders will continue to fund restaurant companies.a

Social Media Explosion

Social media has had a huge impact on the restaurant industry, allowing restaurant companies to communicate with their customers, and for their customers to communicate with each other. However, some question the long-term benefits of the daily deal sites. Bielinski comments, aThere is a debate among restaurateurs as to whether the Groupon user will become a long-term customer. If the Groupon user is just a coupon chaser and moves from your restaurant to the next restaurant offering a deal, there is not much benefit for the restaurateur.a

The Important Role of Restaurants

According to the [ National Restaurant Association ], close to 10 percent of the United Statesa workforce is employed by the restaurant industry, which makes it one of the nationas largest private sector employers. In addition, the restaurant industry gained back all of the jobs lost in the recession as of November 2011, with the industry currently providing 105,000 more jobs than it did at the pre-recession peak.

EDITORaS NOTE:

Individuals interested in receiving corporate news releases can register at [ cit.com/newsalerts ] or subscribe to the RSS feed at [ cit.com/rss ].

About CIT

Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $34 billion in finance and leasing assets. A member of the Fortune 500, it provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in [ small business ] and [ middle market lending ], [ factoring ], [ retail finance ], [ aerospace ], [ equipment ] and [ rail leasing ], and [ global vendor finance ]. CIT also operates CIT Bank, [ BankOnCIT.com ], its primary bank subsidiary and an FDIC-insured online bank that offers a suite of savings options designed to help customers achieve a range of financial goals. [ cit.com ]

Photos/MultimediaGallery Available: [ http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50164799&lang=en ]