Order up: Demand for industry services will rise as the economy continues to improve

The Chain Restaurants industry has experienced steady growth over the past five years. As per capita disposable income increased and unemployment declined, consumer confidence improved, giving rise to greater spending on sit-down meals. Although the average industry profit margin remains constrained by increasing competition, profit margins for most chains have increased over the past five years. The industry's run of steady growth is projected to stabilize over the five years to 2023. Consumers will increase their spending at restaurants as the economy continues to improve and unemployment dissipates...purchase to read more.

Industry Statistics & Market Size
Revenue
$144bn
Annual Growth 13-18
4.9%
Forecast Growth 18-23
Profit
Employment
2.6m
Businesses
118,357

Industry Threats & Opportunities

  • As per capita disposable income increased and unemployment declined, consumer confidence improved
  • Society’s increasing awareness of health risks has encouraged chain restaurant menu updates
  • Full-service chain restaurant operators will continue to invest in technology
  • Industry Report - Industry Analysis Chapter

    The Chain Restaurants industry has undergone an extended period of growth over the past five years as consumers have returned to higher levels of spending. A sharp rise in consumer confidence due to declining unemployment and rising per capita disposable income has encouraged consumer spending. However, the industry has contended with rising competition from a range of food service establishments, especially those that specialize in convenient meals at a low price. Fast-casual restaurants that do not offer table service but offer a higher quality of food and ambiance compared with a fast food restaurant are experiencing particularly strong growth and, therefore, are increasingly taking market share away from full-service chain restaurants. Nev...purchase to read more.

    Additional Insights for the Chain Restaurants Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Chain Restaurants Industry are

  • Access to multiskilled and flexible workforce
  • Ability to quickly adopt new technology
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Consumer Confidence Index in the Chain Restaurants industry impact industry performance..

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    What's in this report

    What is the Chain Restaurants Industry?

    The industry consists of chain and franchised restaurants that provide food services to patrons who order and are served while seated (i.e. wait service) and pay after eating. These establishments may provide this type of food service to patrons in combination with alcoholic and other beverages.

    Industry Products
  • American
  • Italian / pizza
  • Seafood
  • Varied menus
  • Mexican
  • Industry Activities
  • Full-service restaurant operation (wait service at tables)
  • Chain full-service restaurant operation (directly owned and operated by owners)
  • Franchised full-service restaurant operation (under franchise agreements with franchisers)
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Consumer Confidence Index
  • Healthy eating index
  • Households earning more than $100,000

  • Current Performance
  • Growth despite changing consumer preferences
  • New health trends emerge
  • Consolidation and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Tech-savvy operators will thrive
  • The industry remains labor intensive
  • Industry restructuring
  • Table: Chain Restaurants Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Chain Restaurants Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Beer Wholesaling
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Frozen Food Wholesaling
  • Fruit & Vegetable Wholesaling
  • Wine & Spirits Wholesaling

  • Products & Services
  • American
  • Varied menus
  • Italian / pizza
  • Other
  • Seafood
  • Mexican
  • Chart: Chain Restaurants Industry Products and Services Segmentation

  • Demand Determinants
  • Income and expenditure
  • Demographics
  • Health and lifestyle

  • Major Markets
  • Households earning $50,000 to $99,999
  • Households earning $100,000 to $199,999
  • Households earning $30,000 to $49,999
  • Households earning less than $30,000
  • Households earning over $200,000
  • Businesses
  • Government
  • Chart: Major Market Segmentation for the Chain Restaurants Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesDepreciationOther
  • Chart: Cost Structure Benchmarking – Sector vs Chain Restaurants

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chain Restaurants Industry

  • Industry Globalization
    Darden Restaurants Inc., DineEquity Inc.,
  • Table: Darden Restaurants Inc. - financial performance
  • Table: DineEquity Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chain Restaurants Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Chain Restaurants Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer spending (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Average Check
  • The average amount of money spent per check at an industry establishment.
  • Chain Restaurants
  • Restaurants owned and directly operated by a single company.
  • Comparable Store Sales
  • A retail measure used to assess the true performance of retail outlets by taking out the effect of new store openings and only looking at the sales growth of existing stores.
  • Fast-Casual Restaurants
  • Self-service restaurants offering higher quality offerings, sometimes prepared to order, at a higher price point than traditional quick-service restaurants.
  • Franchised Restaurants
  • Restaurants with concepts sold to the individual operator. Franchisees receive ordering, marketing, training and financial and management support from the franchiser.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Chain Restaurants can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Chain Restaurants:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Chain Restaurants market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Chain Restaurants, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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