Staking claim: Fast recovering high-end customers will boost industry revenue growth

The Premium Steak Restaurants industry has benefited from a rise in demand over the past five years. Although consumer spending primarily drives industry sales, steakhouses have long been a client-friendly dining option for business travelers as well. As the economy improves and corporate profit rises, many businesses will increase their travel expenditure, indirectly improving this industry's sales. Over the next five years, industry revenue will continue to grow, albeit at a slower rate. Demand for steak restaurants will increase as consumers with greater incomes continue to recover from the recession and businesses expand their spending on eating out. Furthermore, the price of beef is expected to continue falling, contributing to widening profit margins among industry consumers...read more.

Industry Statistics & Market Size
Revenue
$8bn
Annual Growth 12-17
2.9%
Forecast Growth 17-22
Profit
Employment
115,344
Businesses
2,524
What Our Customers Say

Industry Threats & Opportunities

  • Companies may have to adjust business models in response to increased competition and changing consumer preferences
  • The shift in consumer eating habits has been a boon to the industry
  • Healthy options and responsibly produced beef will become greater priorities for consumers
  • Industry Report - Industry Key Buyers Chapter

    The industry has a low concentration of ownership. IBISWorld estimates that in 2017, the four largest companies account for less than 25.0% of annual industry revenue and the 10 largest enterprises currently account for just less than 40.0% of industry revenue. The industry has a fragmented structure and most companies operate within a narrow geographic market.Despite the presence of a handful of nationally recognized chains, concentration is brought down by the vast number of single, owner-operated establishments that are not part of a chain or franchise operation. Annual average revenue per establishment is estimated to be about $3.3 million in 2017, and each operator has about 45 employees. Bec...purchase to read more.

    Additional Insights for the Premium Steak Restaurants Industry

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

  • Access to multi-skilled and flexible workforce
  • Attractive product presentation
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Consumer Confidence Index in the Premium Steak Restaurants industry impact industry performance..

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    What is the Premium Steak Restaurants Industry?

    The industry includes chain, franchised and single-location restaurants that provide premium steak to consumers. Customers order and are served by waiters or waitresses while seated, and they pay after eating. These establishments may provide food services in combination with selling alcoholic and other beverages.

    Industry Products
  • Classic steak restaurants
  • Steak and seafood restaurants
  • Premium Brazilian steak restaurants
  • Other premium steak restaurants
  • Industry Activities
  • Independent (non-chain or franchised) operated premium steak restaurants
  • Franchised premium steak restaurants
  • Chain fine dining steak restaurant operation (directly owned and operated by owners)
  • 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
  • Consumer Confidence Index
  • Households earning more than $100,000
  • Corporate profit
  • Healthy eating index

  • Current Performance
  • Changing consumer preferences
  • Shifting costs
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumers and businesses return
  • Beef prices
  • Table: Premium Steak Restaurants Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Premium Steak Restaurants Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Beef Cattle Production
  • Beer Wholesaling
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Fruit & Vegetable Wholesaling
  • Wine & Spirits Wholesaling

  • Products & Services
  • Classic steak restaurants
  • Steak and seafood restaurants
  • Other premium steak restaurants
  • Premium Brazilian steak restaurants
  • Chart: Premium Steak Restaurants Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Households with incomes above $75,000
  • Corporate-expense diners
  • Households with incomes from $50,000 to $75,000
  • Households with incomes below $50,000
  • Chart: Major Market Segmentation for the Premium Steak Restaurants Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Chart: Cost Structure Benchmarking – Sector vs Premium Steak Restaurants

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Premium Steak Restaurants Industry

  • Industry Globalization
    Ruth's Hospitality Group, Inc.Darden Restaurants Inc.
  • Table: Ruth's Hospitality Group, Inc. - financial performance
  • Table: Darden Restaurants Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Premium Steak 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 Premium Steak 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
    Churrascaria
  • Traditional Brazilian-style steakhouse
  • Full-Service Restaurant
  • A restaurant that provides guests with sit-down meals that include table service by waitstaff.
  • Single-Location Restaurant
  • Usually an owner-operated restaurant with significant and direct input by the owners into the business.
  • Usda Prime
  • Highest quality beef on the market and limited supply. Currently, about 2.9% of carcasses grade as Prime.
  • Why buy this report?

    The Premium Steak Restaurants Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

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

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