Overview

Running hot: Equipment sales will grow as restaurants resume expansion plans

IBISWorld’s Restaurant & Hotel Equipment Wholesaling market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Revenue
$24bn
Annual Growth
11-16
1.0%
Annual Growth
16-21
Profit
Employment
48,946
Business
5,628

Industry Threats & Opportunities

  • Improving economic conditions will encourage hotel and restaurant operators to resume expansion plans
  • Tax credits provide an incentive to engage in capital improvement, boosting demand for equipment
  • Improvements in the fast food and restaurant market will positively affect industry revenue

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    Industry Analysis & Industry Trends

    During the recession, consumer spending plummeted as people were cash strapped because of high unemployment and low disposable incomes. However, after 2010, consumers began dining out at restaurants and traveling more, boosting industry demand as restaurant and hotel owners started to feel more comfortable investing in new equipment. In the upcoming years, more companies will look to invest in technologically advanced and energy-efficient equipment such as ovens, deep fryers and heated cabinets. Domestic travel is also expected to pick up this year, which will continue to raise industry demand. Together, these trends will increase revenue and profitability in the five years to 2021...

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    Industry Report - Industry SWOT Analysis Chapter

    The Restaurant and Hotel Equipment Wholesaling industry is in the mature stage of its life cycle. In the 10 years to 2021, industry value added (IVA), which measures an industry's contribution to GDP, is projected to grow at an annualized rate of 1.9%. In comparison, GDP is expected to grow at an annualized rate of 2.1% in the same period. When an industry's IVA rate is similar to that of GDP growth, it is indicative of an industry in a mature life cycle stage.

    In the five years to 2016, there have been a number of mergers and acquisitions within the industry. Wholesalers have started realizing that in order to stay competitive they must take advantage of economies of scale because per-unit prices decrease as the size of wholesalers' operations and infrastructure increases. Com..

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    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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    Look under the hood?

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    Industry Products

    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

    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
  • 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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    There are no major players in this industry
    Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Restaurant & Hotel Equipment Wholesaling Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Consumer Spending (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Full-Service Restaurant
  • A food establishment where customers can be served their meal at a table, receive waiter or waitress services 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.
  • Why buy this report?

    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 Restaurant & Hotel Equipment Wholesaling:
    • 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 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

    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 Restaurant & Hotel Equipment Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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