Return of the Lunchtime Schmooz? Businesses and Wealthy Consumers Driving Demand for Premium Steak Restaurants claims Industry Market Research Report from IBISWorld

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The Premium Steak Restaurant industry revenue is expected to expand at an average annual rate of 3.3% to reach $6.3 billion by 2016. According to a new IBISWorld industry market research report demand for steak restaurants will increase as affluent consumers continue to recover from the recession and businesses spend more on eating out. IBISWorld industry analyst Kathleen Ripley says other important trends include input costs and healthy eating. “The higher price of beef, mainly due to higher feed prices, will put pressure on company profits, and consumers will continue to shift their preferences toward locally grown and healthy foods. As such, steakhouse revenue will primarily grow from purchases by the wealthy and business schmoozing. In 2012, revenue is expected to increase by 3.6% to reach $5.5 billion.”

IBISWorld Market Research

IBISWorld Market Research

The Premium Steak Restaurant industry experienced volatile revenue performance over the five years to the end of 2011. Strong economic growth prior to the recession resulted in thriving revenue and an expanding industry as consumers flocked to restaurants to purchase premium dinners. However, the recession caused the number of customers to dwindle as incomes declined and corporate spending subsided. With the economy beginning to recover, consumers are returning to restaurants to purchase high-end meals. In addition to fluctuating revenue, this industry has had to weather higher beef costs and changes in consumer preferences, such as toward organic and locally produced goods. Both trends affected the way companies conduct business. The cost of beef directly affects profit so many companies have had to increase menu prices to offset higher food costs.

In the next five years to 2016, industry revenue is expected to increase at an average annual rate of 3.3% to $6.3 billion. Revenue will grow strongly as personal incomes rise and consumers increase their spending on discretionary items such as expensive meals. Companies will also increase their spending on the industry’s products and services as corporate event and dining activities rebound.

Major companies in the Premium Steak Restaurants industry include Ruth’s Hospitality Group, Morton’s Steakhouse and Darden Restaurants. "Despite the current low level of barriers to entering the industry, obstacles are steadily rising. The industry has returned to growth and is approaching market saturation. Competition for customers, prime locations, corporate accounts and contracts with suppliers of premium beef products is expected to increase over the next five years. There is also growing brand recognition within the industry as many of the larger chain steakhouses and restaurants expand nationally and better leverage their reputation" Ripley stated.

For more information visit IBISWorld Premium Steak Restaurants industry report

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This 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.

Main Activities
Primary activities of this industry
Chain fine dining steak restaurant operation (directly owned and operated by owners)
Franchised premium steak restaurants
Independent (non-chain or franchised) operated premium steak restaurants

Major products and services in this industry
Classic steak restaurants
Premium Brazilian steak restaurants
Steak and seafood restaurants
Other premium steak restaurants

Premium Steak Restaurant Industry Report Key Topics

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

Products & Markets
Supply Chain
Products & Services
Major Markets

Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry

Major Companies

Operating Conditions
Capital Intensity

Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Savannah Haspel
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