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 struggled with consumer preferences moving away from unhealthy foods and a saturated food service landscape that has kept prices low. Compared with other operators in the hospitality sector, however, fast food restaurants performed relatively well in the early half of the five years to 2017 due to their low price points and the extra convenience they offer. Additionally, major fast food retailers have responded to changing consumer preferences by expanding the number of healthy menu items. Fast food restaurants will continue to operate in a slow-growth environment, as many segments of the industry have reached a saturation point. Further, consumers will continue to seek healthy and convenient meal options...purchase to read more.

Industry Statistics & Market Size
Revenue
$245bn
Annual Growth 12-17
3.1%
Forecast Growth 17-22
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Profit
x.x%lock
Employment
4.5m
Businesses
294,633
Market Share of Companies

Industry Threats & Opportunities

  • As consumers continue to seek healthy and convenient meal options, operators will need to adapt their offerings to be successful
  • The long-term strategy of most major chains involves international expansion
  • Fierce price-based competition will place increased emphasis on product development

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    Industry Report - Industry Analysis Chapter

    The Fast Food Restaurants industry has experienced steady growth over the five years to 2017, as convenient and affordable food remains popular with consumers. While the low price point of the industry’s products typically places fast food restaurants with a competitive advantage over other segments of the food services sector, rising consumer sentiment, which has spurred a greater amount of spending on discretionary items such as meals, has increased competition overall. Furthermore, with the rise of fast-casual concepts and independent chains rapidly gaining market share, major industry operators have had to alter their offerings to effectively compete. Dur...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

    Industry Products

    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

    About this Industry

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources

    Industry at a Glance

    Industry Statistics Snapshot
    Industry Structure
    Executive Summary

    Industry Performance

    Executive Summary
    Key External Drivers
  • Consumer spending
  • Healthy eating index
  • Consumer Confidence Index
  • Households earning more than $100,000

    • 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

    • Products & Markets

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

    • Demand Determinants
  • Demographic trends
  • Health consciousness
  • Convenience

    • Major Markets
  • Third quintile of incomes
  • Fourth quintile of incomes
  • Second quintile of incomes
  • Highest quintile of incomes
  • Lowest quintile of incomes
  • Chart: Major Market Segmentation for the Fast Food Restaurants Industry

    • International Trade
    Business Locations
    Chart: Business Locations by State

    Competitive Landscape

    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

    Major Companies

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

    • Operating Conditions

    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

    Key Statistics

    Table: Industry Data for the Fast Food Restaurants Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer spending (2008-2022)

    • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios

    Jargon & Glossary

    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 research report on Fast Food Restaurants contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

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    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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