“It is a little crowded, but no matter what, the cream will rise to the top,” Garzia says. “The good chains, whether they are local, regional or national, will survive.”

Various analysts report a restaurant oversupply drove same-store lags in 2016. These same analysts say 2017 is likely to bring much the same. With the rice of fresh-cooked food in grocery stores, no one is predicting massive growth. (Could telling a story make all the difference?)

“Another aspect is whole home-cooked meal replacement concepts you find in grocery stores,” Gazia says. “The restaurants and the grocers are in competition for those same dollars.”

ATLANTA—There are over 1 million restaurant locations in the United States, according to the National Restaurant Association's latest report. Is the restaurant category overcrowded and ailing? That depends, at least in part, on whom you ask.

Some are pointing to a “restaurant revival” on the investment front. Driven by improvements in the current situation indicators, the Restaurant Performance Index registered a moderate increase in May. The RPI stood at 100.9 in May, up 0.6 percent from a level of 100.3 in April.

“America's appetite, no pun intended, for dining out is not going away,” Nick Garzia, director of leasing for Atlantic Station, tells GlobeSt.com. “People don't have the amount of time that they used to. Also, Millennials are prioritizing experiences, including dining out, over other tangible goods.”

Others are saying overcrowding is real. NPD Group predicts traffic will be flat this year, with a 2% decline at dine-in restaurants offsetting a 1% increase at quick-service concepts.

“It is a little crowded, but no matter what, the cream will rise to the top,” Garzia says. “The good chains, whether they are local, regional or national, will survive.”

Various analysts report a restaurant oversupply drove same-store lags in 2016. These same analysts say 2017 is likely to bring much the same. With the rice of fresh-cooked food in grocery stores, no one is predicting massive growth. (Could telling a story make all the difference?)

“Another aspect is whole home-cooked meal replacement concepts you find in grocery stores,” Gazia says. “The restaurants and the grocers are in competition for those same dollars.”