Dining out: Renewed demand and low interest rates have spurred industry revenue growth

Following the economic recovery, the Restaurant Construction industry has experienced much-improved conditions over the five years to 2018. Falling unemployment and improved disposable income during the period resulted in a greater number of consumers increasing their discretionary expenditures, with restaurant spending growing nominally for most of the five-year period. With increased consumer spending and moderately looser credit conditions, restaurants could address their previously deferred expansion and remodeling plans and begin entering the industry. Over the five years to 2023, the Restaurant Construction industry is expected to lose strength as demand for downstream services begins to flatten and demand for new eating space falters...purchase to read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
4.1%
Forecast Growth 18-23
Profit
Employment
10,807
Businesses
2,974
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Value-priced meals were particularly appealing to cash-strapped consumers during the early part of the recovery
  • Construction for dining and drinking establishments grew weakly
  • Consumer spending is expected to continue growing
  • Industry Report - Industry Products Chapter

    Construction management at-risk contractsConstruction management (CM) at-risk contracts have become the standard in the Restaurant Construction industry. Under these arrangements, general contractors operate with an agreed upon guaranteed maximum price. Under the same arrangement, general contractors are required to assume costs that exceed the limit rather than the developer or owner. Thus, CM at-risk contracts have become popular with developers and owners because they help limit their exposure to surprise costs. Moreover, at-risk contracts also allow for more input from contractors at the design level than design, bid and build contracts but less than in the design-build model. The...purchase to read more.

    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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    What's in this report

    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-bid-build contracts
  • Design-build CM risk
  • CM agency contracts
  • Other contracts
  • 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

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    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
  • Trends in the restaurant industry
  • Fast food construction dominates
  • Smaller portions
  • Chart: Revenue Growth

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

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

  • 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-build CM risk
  • Design-bid-build contracts
  • CM agency contracts
  • Other 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
    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
    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 Construction 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 Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer Confidence Index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Building Information Modeling (Bim)
  • Software that enables 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Restaurant Construction 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 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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