Consumers are cutting back on spending and eating at home
London, United Kingdom (PRWEB) November 02, 2012
The Take-Away & Fast Food Restaurants industry has suffered during the past five years as deteriorating economic conditions led consumers to cut back on discretionary spending. Operators in the industry are facing increasing consumer demand for low-fat, low-sugar and low-salt (FSS) meal options. According to IBISWorld industry analyst Steven Connell, “the industry will record weak growth during 2012-13, with some consumers trading down from more expensive restaurant meals, while uncertain times led others to find sustenance in their favourite comfort foods”. Mobile and online technology are changing the industry, with many operators offering online ordering and delivery services. Industry revenue is estimated to decline at an average annual rate of 2.1% over the five years through 2012-13 to reach £5.29 billion, with 1.3% growth in the current year.
Industry growth is forecast to lift slowly over the next five years to 2017-18, in line with the broader economy. Early on, growth will be held back as austerity measures, high unemployment and ongoing concerns over the European debt situation continue to foster a climate of uncertainty. Some industry operators should still benefit as some consumers trade down to take-away from more expensive dining options. Growth is forecast to improve later in the period as consumers loosen their purse strings again. Connell adds, “consumer demand for convenient, healthy food options will drive growth and innovation in the industry, while mobile and online platforms will become increasingly important for ordering”.
The Take-Away & Fast Food Restaurants industry is generally owner-operated and fragmented. However, the franchised and chain segment is continuing to expand its share by opening new stores in various locations, as well as by attempting to steal market share from other companies. The overall level of industry concentration is medium, with the top six players generating nearly 70% of total industry revenue. Major companies include McDonald’s, Doctor’s Associates, Yum! Brands and Domino’s Pizza.
For more information on the Take-Away & Fast Food Restaurants industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Customers usually pay before eating at take-away and fast-food restaurants. Food and drink purchases from these restaurants are either consumed on site, taken away or ordered over the phone or internet for home delivery. Most industry players sell beverages (water, juice or soft drinks), but not usually alcohol.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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