Major international sporting events, including the summer London Olympic Games in 2012, will also aid revenue performance.
London, United Kingdom (PRWEB) October 27, 2011
Over the next five years, the Take-Away & Fast-Food Restaurants industry performance is expected to improve slightly, but will still be restricted by the subdued economic recovery and high market saturation of take-away foods, according to latest report from IBISWorld, the UK’s largest publisher of industry research. Competition will also remain fierce as operators focus on increasing market share at the expense of others. Overall, IBISWorld expects industry revenue to increase at an annualised rate of 1.2% over the next five years to total £5.1 billion in 2016-17.
According to IBISWorld analyst, Suzannah Rowley, over the past five years, revenue in the Take-Away & Fast-Food Restaurants industry in the United Kingdom has declined due to subdued growth in demand and fierce price-based competition on menu items between industry operators. The recent global economic downturn has caused falls in real household disposable income, particularly as the unemployment rate remains at or above 8.0%. Customers are responding by cutting back on discretionary spending, including reducing their total expenditure on take-away and fast foods. “Overall, industry revenue has declined at an annualised rate of 2.9% over the past five years to total £4.8 billion in 2011-12,” says Rowley. “Industry revenue is forecast to grow at just 0.1% this year, given the prevailing economic uncertainty and low consumer sentiment.”
Operators in the Take-Away & Fast-Food Restaurants industry are facing increasing consumer demand for low-fat, low-sugar and low-salt (FSS) meal options. The number of overweight and obese people in the United Kingdom, both children and adults, continues to rise rapidly, which is contributing greatly to changing dietary needs. Chronic health problems associated with being overweight, including the burden of diseases such as diabetes, are leading to significant escalations in UK health costs. As such, the government has already intervened and banned advertising of take-away foods during children's TV programmes. This initiative is just the first of many expected to be introduced in the future. Demand for healthier food options is also rising. Major operators are increasingly satisfying this market niche by offering freshly made take-away food at value prices.
Over the next five years, industry performance is expected to improve slightly, but will still be restricted by the subdued economic recovery and high market saturation of take-away foods. Competition will also remain fierce as operators focus on increasing market share at the expense of others. "Some major international sporting events, including the summer London Olympic Games in 2012, will also aid revenue performance. However, studies concerning the economic effect of the Olympics have indicated that most benefits will flow on to food operators in London and neighbouring regions, with most other areas destined to lose custom. Overall, IBISWorld expects industry revenue to increase at an annualised rate of 1.2% over the next five years to reach £5.1 billion in 2016-17.
For more information, download the full report from IBISWorld on the Take-Away & Fast-Food Restaurants industry
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