Industry Analysis & Industry Trends
The Pizza Restaurants industry has felt the heat over the five years to 2012. Operators have been substantially affected by changes in consumer spending, intense external competition and an increase in health consciousness. Despite these challenges, the industry still expanded as pizza restaurants adjusted their products to adapt to consumer preferences and consumer spending returned in 2010, which increased the demand for overall restaurant food. From 2007 to 2012, industry revenue is forecast to grow an estimated 1.5% per year to $42.8 billion. In 2012 specifically, revenue is projected to grow 4.5% as consumer confidence in the economy improves and people indulge in luxuries such as eating out.
From 2012 to 2017, IBISWorld expects industry revenue to increase an average 2.9%.... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity in the Pizza Restaurants industry is low. For every dollar spent on labor, the average operator allocates $0.07 toward capital investments. Labor is used for most activities performed in the typical pizza restaurant, from taking orders to making the pizza, to maintaining premises and managing its day-to-day actions. As such, labor makes up a much larger component of revenue than depreciation. Operators spend on depreciation in the form of computers and software used to make and track orders, cash registers and equipment used to bake the pizzas.
Capital intensity has grown over the five years to 2012 because technological advancements have enabled customers to order their pizzas over the internet... purchase to read more