Industry Analysis & Industry Trends
Although the recession caused individuals to eat out less, increasing disposable incomes will turn this trend around, resulting in greater demand for fast food options. Fast food restaurants will benefit from expanding their menus and adding new operations overseas in the next five years. Operators will also look to benefit from high-margin and nontraditional menu items to capitalize on increased spending... purchase to read more
Industry Report - Industry Investment Chapter
The Fast Food Restaurants industry is subject to a low level of capital intensity. For every $1.00 the average restaurant in the industry spends on wages in 2014, it will spend an estimated $0.12 on the use and replacement of capital.
The industry is highly dependent on direct labor input across all areas of operation, from cashiers, to delivery and food preparation, to cleaning and operational management. Due to the service nature of the industry, many of these labor-intensive functions cannot be substituted by technology or machinery. To meet customers' expectations and provide a quality and hospitable dining experience, a well-trained staff is required.
Some rise in labor productivity can occur from investment in technology... purchase to read more