|
|
Home > Consumer Products > Travel & Leisure > Restaurants, Fast Food & Catering
Restaurants
|
|
About 400,000 restaurants operate in the US, with combined annual revenue of $240 billion. Large chain owners include McDonald's; Yum Brands (KFC, Pizza Hut, Taco Bell); and Darden Restaurants (Olive Garden, Red Lobster). The industry is highly fragmented: the 50 largest companies hold only 20 percent of the market. The typical restaurant company has one location and less than $500,000 in annual revenue, although a few companies have revenue up to $5 million.
COMPETITIVE LANDSCAPE
Demand is largely driven by consumer income because restaurant food is more expensive than food at home. The profitability of an individual restaurant depends heavily on service and marketing. There are few economies of scale, except that chains can buy raw materials in bulk and can leverage their marketing costs. Small restaurant companies can readily compete against large ones by offering superior food or service. The industry is labor-intensive: annual revenue per employee is roughly the same for large or small restaurants, about $35,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Restaurants buy food in bulk and prepare it for sale to retail customers. The business is simple in concept, which is why a large number of restaurants compete in most markets and why small restaurants and chains can effectively compete with larger ones. The highly competitive nature of the industry makes success difficult, and the failure rate for restaurants is higher than for most other businesses.
Industry revenue is split about equally ...
|
Similar Products
• MenuMine Best Practices Report, 125 Cutting Edge Restaurant Independents
Published Dec 2008 by Foodservice Research Institute
• MenuMine Best Practices Report, 217 QSR Restaurant Chains
Published Dec 2008 by Foodservice Research Institute
• 2009 U.S. Fast Food Restaurants Industry Report
Published Oct 2008 by Barnes Reports
• 2009 U.S. Drinking Places & Bars Industry Report
Published Oct 2008 by Barnes Reports
• 2009 U.S. Full-Service Restaurants Industry Report
Published Oct 2008 by Barnes Reports
• China Fast Food Analysis
Published Oct 2008 by RNCOS
• Bars and Nightclubs
Published Sep 2008 by First Research, Inc.
• Prepared Meal Solutions: Culinary Trend Mapping Report
Published Sep 2008 by Packaged Facts
• Reinhart Foodservice - SWOT Analysis
Published Sep 2008 by Datamonitor
|
|
|
|
0 items
