Industry Analysis & Industry Trends
The Pizza Restaurants industry has felt the heat over the five years to 2014. Operators have been substantially affected by changes in consumer spending, intense external competition and an increase in health consciousness. As the economy improves in the coming years, consumers will increase their purchases of nondiscretionary goods, such as restaurant pizzas. The industry will continue to be negatively affected by increased competition from grocery stores, however, as well as increased health consciousness from consumers.... 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 $0.08 toward the use and replacement of capital. 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 2014 because technological advancements have enabled customers to order their pizzas over the internet... purchase to read more