On the run: Operators will offer healthy menu items to appeal to changing consumer preferences

Over the past five years, the Fast Food Restaurants industry has grappled with consumer preferences shifting from unhealthy foods, as well as a saturated food service landscape that has kept prices low. However, compared with other operators in the hospitality sector, fast food restaurants have still performed well over the five years to 2018 due to their low prices and convenience they offer. Many major chains have also introduced healthier options and invested in their international operations as part of a long-term strategy. Industry growth is expected to slow over the next five years even as the domestic economy continues to improve. Competition is expected to remain high, contributing to much of the industry's anticipated tepid growth...purchase to read more.

Industry Statistics & Market Size
Revenue
$255bn
Annual Growth 13-18
3.8%
Forecast Growth 18-23
Profit
Employment
4.4m
Businesses
249,371

Industry Threats & Opportunities

  • Eating habits have changed as people have become increasingly health conscious, demanding alternatives to fast food options
  • Fast food operators have performed with varying degrees of success depending on the products they offer
  • Fast food restaurants will benefit as the economy continues to improve over the next five years
  • Industry Report - Industry Investment Chapter

    The Fast Food Restaurants industry is subject to a low level of capital intensity. For every $1.00 the average restaurant in the industry spends on wages in 2018, it will spend an estimated $0.11 on the use and replacement of capital. As there have not been any substantial changes in capital investment for this industry, capital intensity is contiguous with estimates from 2013.The industry is highly dependent on direct labor input across all areas of operation. Industry operators require personnel as cashiers, for delivery and food preparation, cleaning and operational management. Due to the service nature of the industry, many of these labor-intensive functions cannot be substituted by technology or machinery. To ...purchase to read more.

    Additional Insights for the Fast Food Restaurants Industry

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

  • Business expertise of operators
  • Having a clear market position
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Healthy eating index in the Fast Food Restaurants industry impact industry performance..

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    What's in this report

    What is the Fast Food Restaurants Industry?

    This industry comprises restaurants where patrons pay for quick-service food products before eating. Purchases may be consumed on-site, taken out or delivered. Gross revenue is derived from both franchised and company-owned stores. Franchise fees (up-front costs associated with opening a franchise) are accounted for in industry revenue. This industry excludes coffee and snack shops. Most industry establishments also sell beverages, such as water, juice and sodas, but usually not alcohol.

    Industry Products
  • Burgers
  • Sandwiches
  • Mexican
  • Pizza and Pasta
  • Chicken
  • Asian
  • Industry Activities
  • Operating quick-service restaurants
  • Operating fast food services
  • Operating drive-thru and take-out facilities
  • 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
  • Healthy eating index
  • Consumer Confidence Index
  • Domestic trips by US residents

  • Current Performance
  • Improved consumer spending
  • Consumer trends drive new strategies
  • Overseas expansion
  • Wages and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • New ways to expand
  • Industry landscape
  • Table: Fast Food Restaurants Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Consumers

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

  • Products & Services
  • Burgers
  • Other
  • Sandwiches
  • Chicken
  • Pizza and Pasta
  • Mexican
  • Asian
  • Chart: Fast Food Restaurants Industry Products and Services Segmentation

  • Demand Determinants
  • Demographic trends
  • Health consciousness
  • Convenience

  • Major Markets
  • $50,000 - $99,999
  • Less than $50,000
  • $100,000 - $149,999
  • $200,000 +
  • $150,000 - $199,999
  • Chart: Major Market Segmentation for the Fast Food Restaurants Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Fast Food Restaurants

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

  • Industry Globalization
    McDonald's Corporation, Yum! Brands Inc., Subway,
  • Table: McDonald's Corporation - financial performance
  • Table: Yum! Brands Inc. - financial performance
  • Table: Subway - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fast Food 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 Fast Food 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
    Baby Boomers
  • Consumers born between 1946 and 1964 who account for a major proportion of the population.
  • Net Revenue
  • Revenue from company-owned stores and franchise fees, but not franchised stores' total sales.
  • Point-Of-Sale (Pos)
  • The location where a transaction occurs at a retail establishment or store.
  • Same-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 sales growth of existing stores.
  • System-Wide Sales
  • Sales from both company-owned or managed and franchised or licensed outlets. System-wide sales excludes royalties and franchising revenue fees.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Fast Food Restaurants is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    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 Fast Food 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 Fast Food 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 Fast Food Restaurants, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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