Providing hospitality: Improving economic conditions will increase industry demand

The performance of the Restaurant and Hotel Equipment Wholesaling industry is driven by a variety of factors, including the state of the economy and travel-related trends. Over the past five years to 2018, industry revenue rebounded from the negative effects of the recession, as downstream restaurants and hotels increased their expenditures on capital improvements in light of improving consumer demand. Consumer spending has played a major role in helping the industry return to growth. Steady employment and economic growth have increased disposable income levels, making consumers more willing to spend on nonessential leisure activities such as dining out and traveling...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Sales of newer, automated products bolster profit margins for hotel and restaurant equipment wholesalers
  • Tax provisions enable restaurant operators to save money, ultimately boosting demand for products
  • The industry will continue to benefit from the improving economy and rising disposable incomes
  • Industry Report - Industry Locations Chapter

    IBISWorld estimates that business activity in 2018 will be concentrated in the Southeast region (25.1% of establishments), West region (18.7%), Mid-Atlantic region (17.4%) and Great Lakes region (13.9%). California (13.5%), Florida (8.7%), New York (8.1%) and Texas (7.5%) have the greatest concentration of establishments.The industry tends to flourish in highly populated areas, where wholesalers can be close to customers. For example, the majority of restaurants are located in California, Florida, New York and Texas. The geographic distribution of US residents affects the location of establishments, particularly food service operators. Data from the US Census indicates that the Southeast region is the most populated in the US followed by the West and Mid-Atlantic regions...purchase to read more.

    Additional Insights for the Restaurant & Hotel Equipment Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Restaurant & Hotel Equipment Wholesaling Industry are

  • Having links with suppliers
  • Having a loyal customer base
  • Having a good technical knowledge of the product
  • IBISWorld analysts also discuss how external factors such as Demand from food services and drinking places and Consumer spending in the Restaurant & Hotel Equipment Wholesaling industry impact industry performance..

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    What's in this report

    What is the Restaurant & Hotel Equipment Wholesaling Industry?

    Companies in this industry distribute, sell and repair commercial machines and equipment used in restaurants and hotels. These products include cooking equipment, dishwashing equipment, balances and scales, soda fountains and food-service fixtures and signs. This industry excludes the wholesaling of refrigeration equipment, which is included in the Refrigeration Equipment Wholesaling industry (IBISWorld report 42374).

    Industry Products
  • Restaurant and hotel equipment
  • Store machines and equipment
  • Service receipts and labor charges
  • Industry Activities
  • Balances and scales wholesaling
  • Commercial cooking equipment wholesaling
  • Commercial dishwashing equipment wholesaling
  • Commercial food-service equipment wholesaling
  • Commercial oven wholesaling
  • Commercial kitchen utensil wholesaling
  • Store equipment and fixture wholesaling
  • Vending machine wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from food services and drinking places
  • Consumer spending
  • Value of private nonresidential construction
  • Domestic trips by US residents
  • Prime rate

  • Current Performance
  • Spending resumes after the recession
  • Availability of credit and other incentives
  • Rising profit, stagnating industry participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving conditions
  • Utility costs and other factors
  • Industry structure and profitability
  • Table: Restaurant & Hotel Equipment Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Restaurant & Hotel Equipment Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Convenience Stores
  • Hotels & Motels
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Food Service Contractors
  • Coffee & Snack Shops
  • Fast Food Restaurants

  • Key Selling Industries
  • Copier & Optical Machinery Manufacturing
  • Hand Tool & Cutlery Manufacturing
  • Office Furniture Manufacturing
  • Power Tools & Other General Purpose Machinery Manufacturing

  • Products & Services
  • Restaurant and hotel equipment
  • Store machines and equipment
  • Service receipts and labor charges
  • Chart: Restaurant & Hotel Equipment Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Restaurants, hotels and food services
  • Business users for end use
  • Other wholesalers for resale
  • Retailers for resale and repair shops for repair work
  • Other
  • Building contractors, heavy construction and governmental bodies
  • Chart: Major Market Segmentation for the Restaurant & Hotel Equipment Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Additional expenses
  • Chart: Cost Structure Benchmarking – Sector vs Restaurant & Hotel Equipment Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Restaurant & Hotel Equipment Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Restaurant & Hotel Equipment Wholesaling 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 Restaurant & Hotel Equipment Wholesaling Industry
  • 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
    Full-Service Restaurant
  • A food establishment where customers receive table service and typically pay at the end of the meal.
  • Radio Frequency Identification (Rfid)
  • A technology that tracks products from the time they leave the assembly line to the time they leave the store by releasing continuous signals from a chip.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

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    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
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    • 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 Restaurant & Hotel Equipment Wholesaling 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

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