Industry Analysis & Industry Trends
The Fast Food Restaurants industry has experienced steady growth over the five years to 2015, as convenient and affordable food remains popular with consumers. The industry will continue to play an influential role in the United States food-services sector over the next five years. However, the industry will remain highly competitive, forcing fast food chains to compete on price, which will ultimately restrict the industry's revenue and profit growth. Moreover, fast food restaurants are expected to continue to expand their menu options away from highly processed foods in order to cater to changing consumer preferences. This product innovation will play a large part in the industry's growth over the coming years... 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 2015, 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