Los Angeles, CA (PRWEB) October 07, 2011
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.
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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.
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
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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