Industry Analysis & Industry Trends
The Global Fast Food Restaurants industry has managed to grow over the past five years despite being battered by a weakened global economy and society's increasing awareness of the health risks associated with a diet high in fat, salt and sugar. The industry's attempts to respond to changes in consumer preferences have also supported revenue growth. Moreover, over the five years to 2019, IBISWorld forecasts that the industry will continue to surge forward. Global fast food restaurants will benefit as the global economy improves and consumers continue to spend on small luxuries, such as eating out. Rising international expansion of US-based fast food chains will continue to be the primary driver of industry growth as emerging economies increasingly demand more fast food options... 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