Overview

Dining out: Renewed demand and low interest rates will spur industry revenue growth

IBISWorld’s Restaurant Construction 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
$8bn
Annual Growth
11-16
5.6%
Annual Growth
16-21
Profit
Employment
22,719
Business
5,876

Industry Threats & Opportunities

  • Rising disposable income will enable consumers to ramp up spending on dining out, benefiting the industry
  • Fast food restaurants have expanded their array of healthy menu options
  • A higher sense of financial security will generate greater demand for industry contractors

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    Industry Analysis & Industry Trends

    The Restaurant Construction industry experienced vastly improved conditions over the five years to 2016. Decreased unemployment and improved disposable income during the recovery period resulted in a greater number of consumers increasing their discretionary expenditures, with restaurant spending growing nominally each year over the five-year period. With increased consumer spending and moderately looser credit conditions, restaurants were able to address their previously deferred expansion and remodeling plans and began entering the industry. In the coming years, the industry is expected to continue to gain strength, albeit at a slower and more sustainable rate...

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    Industry Report - Industry Analysis Chapter

    Following the bleak operating conditions of the Great Recession, the Restaurant Construction industry underwent its recovery with the aid of encouraging trends over the past five years. As the economy exited into its worst downturn since the Great Depression, consumer spending on nonessential items such as dining began to climb. Consequently, restaurants resumed their shelved expansion plans and previously delayed openings; this resulted in a sharp initial increase in demand for construction contractors specializing in restaurants and sustained growth throughout the remaining five-year period. Overall, in the five years to 2016, revenue for the Restaurant Construction industry is estimated to increase at an annualized rate of 5.6% to $7.6 billion. Thi..

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    Additional Insights for the Restaurant Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Restaurant Construction Industry are

  • Ability to compete on tender
  • Ability to expand and curtail operations rapidly in line with market demand
  • Ability to manage subcontracts
  • IBISWorld analysts also discuss how external factors such as Demand from chain restaurants and Demand from fast food restaurants in the Restaurant Construction industry impact industry performance..

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    Look under the hood?

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    Industry Products

    What is the Restaurant Construction Industry?

    This industry includes operators that engage in new work, additions and reconstruction projects for food service establishments. These include commercial construction projects for fast food restaurants, single-location restaurants, chain restaurants and bars with full food services.

    Industry Products
    Design, new build contracts
    Repair and maintenance contracts
    Remodels, alterations and additions
    Industry Activities
    Addition, alteration and renovation work
    Fast food restaurant construction
    Single-location restaurant construction
    Chain restaurant construction
    Bars and pubs with full food service construction

    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 chain restaurants
  • Demand from fast food restaurants
  • Consumer Confidence Index
  • Yield on 10-year Treasury note
  • Households earning more than $100,000

  • Current Performance
  • A paradigm shift
  • Fast food construction dominates
  • Smaller portions
  • Chart: Revenue Growth

  • Industry Outlook
  • Teetering demand
  • Industry expansion
  • Table: Restaurant Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Restaurant Construction Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Chain Restaurants
  • Single Location Full-Service Restaurants
  • Bars & Nightclubs
  • Coffee & Snack Shops
  • Fast Food Restaurants

  • Key Selling Industries
  • Construction
  • Restaurant & Hotel Equipment Wholesaling
  • TV & Appliance Wholesaling

  • Products & Services
  • Design, new build contracts
  • Remodels, alterations and additions
  • Repair and maintenance contracts
  • Chart: Restaurant Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Single-location restaurants
  • Restaurants with drinking options
  • Fast food restaurants
  • Chart: Major Market Segmentation for the Restaurant Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Restaurant Construction

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Restaurant Construction 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 Construction 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 Construction Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Consumer Confidence Index (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Building Information Modeling (Bim)
  • Software that allows a general contractor to model and plan a building's construction and forecast costs at a granular level.
  • General Contractor (Gc)
  • The construction management company hired by the property owner or developer. The GC is responsible for all aspects and costs of construction, from logistics to hiring subcontractors.
  • Leadership In Energy And Environmental Design
  • A government-sponsored program that gives builders standard guidelines for constructing green buildings.
  • Subcontractor
  • An individual or company hired by the general contractor that specializes in a particular facet of construction, such as plumbing or masonry.
  • 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 Construction:
    • 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 Construction 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 Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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