Industry Analysis & Industry Trends
Over the past five years, the Global Fast Food Restaurants industry has expanded despite changing consumer tastes and a struggling global economy. As disposable income decreased due to the recession, consumers cut back on luxuries such as eating out. However, fast food operators outperformed full-service restaurants during this time, as many consumers found room within their budgets for lower-priced and convenient food options. The industry also experienced steady and growing demand from emerging economies, which boosted the industry's overall performance. Despite countering global economic trends, the industry has been forced to adapt to increasingly health-conscious consumer preferences... read more
Starting a New Business
The barriers to entry are low since a fast food operator can establish a new restaurant with a relatively low capital outlay and no existing customer base. A new entrant to the industry can reduce their initial capital costs, outlays and borrowings by leasing premises and equipment.
While there are a number of established global chains, the industry has a low level of market share concentration with the top four players accounting for less than 40.0% of the industry's revenue in 2014. The majority of businesses are owner-operators serving local areas. Entry to the industry can also be achieved through signing a franchise agreement, which includes outfitting of systems and equipment, as well as training and marketing support... read more