Quick bite: Increased consumer spending and population will boost industry revenue growth

The Fast Food Restaurants industry in Texas has fared well over the past five years, primarily due to rising consumer spending in conjunction with declining unemployment and faster, on-the-go lifestyles. While some industry operators have struggled with changing consumer preferences toward more healthful offerings, fast food restaurants have fared particularly well due to their low-price points and added convenience. Many industry operators have expanded menu offerings, increasing the number of healthful offerings available, while attempting to maintain interest among their core demographic. However, demand has suffered somewhat amid a decline in demand for traditional fast food in lieu of other competitors' offerings, both internally and externally...purchase to read more.

Industry Statistics & Market Size
Revenue
$28bn
Annual Growth 12-17
4.8%
Forecast Growth 17-22
Profit
Employment
465,314
Businesses
15,901

Industry Threats & Opportunities

  • Fast food restaurants have fared well due to low price points and extra convenience
  • Industry operators rely on consumer spending levels and consumer sentiment
  • Industry operators are expected to continue to invest in technology
  • Industry Report - Industry Products Chapter

    The Restaurants industry in Texas is segmented based on the main type of food served. The diverse nature of the industry means many restaurants do not fit neatly into one category. For example, many prominent burger chains also serve chicken- or Mexican-based dishes. Fusion cuisine, which combines elements of different culinary traditions, have become increasingly popular. This is ever more the case as operators chase increasingly fragmented consumer segments. Also, breakfast has become an increasingly lucrative segment for many operators in this industry as operators deal with stagnant sales in the lunch and dinner time slots. Given these considerations, IBISWorld has segmented restaurants based on their core offering...purchase to read more.

    Additional Insights for the Fast Food Restaurants in Texas Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fast Food Restaurants in Texas 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 in Texas and Healthy eating index in the Fast Food Restaurants in Texas industry impact industry performance..

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    What's in this report

    What is the Fast Food Restaurants in Texas 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 no alcohol.

    Industry Products
  • Burger
  • Asian
  • Chicken
  • Latin
  • Pizza and pasta
  • 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 in Texas
  • Healthy eating index
  • Consumer Confidence Index
  • Per capita coffee consumption

  • Current Performance
  • Consumer preference shakes it up
  • Consumer spending obscures industry performance
  • Automation, wages and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Challenges remain relevant
  • Technology reigns
  • Table: Fast Food Restaurants in Texas Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fast Food Restaurants in Texas 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
  • Burger
  • Chicken
  • Latin
  • Pizza and pasta
  • Asian
  • Other
  • Chart: Fast Food Restaurants in Texas Industry Products and Services Segmentation

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

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Fast Food Restaurants in Texas

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fast Food Restaurants in Texas Industry

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

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fast Food Restaurants in Texas 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 in Texas 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
    Baby Boomers
  • Consumers born between 1946 and 1964 who account for a major proportion of the population.
  • Net Revenue
  • Regarding 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
  • From sales in 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 in Texas provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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 in Texas:
    • 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 in Texas 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 in Texas, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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