Restaurants will adjust to lower budgets and health preferences to sustain revenue growth
Los Angeles, CA (PRWEB) March 02, 2012
In recent years, the Single Location Full-Service Restaurants industry experienced a major slowdown due to the struggling economy. However, brighter conditions are on the horizon as consumer spending rebounds. Over the five years to 2012, IBISWorld estimates that industry revenue will grow at an average annual rate of 0.6% to $94.0 billion. After declining over 2009, revenue grew for the first time in four years in 2010 and 2011, and it is expected to continue its upward trajectory in 2012.
IBISWorld industry analyst Nima Samadi says, “In general, consumers are spending less on luxuries like eating out, and when they do, they purchase lower-price items. In the battle to capture a share of people's shrinking budgets, restaurants are losing to home-cooked meals or fast-food restaurants.” Consumers are also becoming more health conscious. While major restaurants have responded by expanding the number of healthy options on their menus, the general trend toward healthy eating has hurt many of the greasier establishments. The Single Location Full-Service Restaurants industry consists of family and owner-operated restaurants that are independent of chain or franchised networks. In general, operators are small businesses, so the industry is fragmented and highly competitive. Overall, concentration is extremely low because of the vast number of businesses, and there are no dominant players in this industry.
While the industry is currently experiencing stronger operating conditions in 2012, operators will still have to contend with customers who are hesitant to part with their money. As such, says Samadi, operators must monitor and adjust to consumer changes. If they manage to meet changing guest needs, owners will be well poised to take advantage of the expected rapid rebound in demand once the economy returns to health. In the five years to 2017, industry revenue is forecast to grow. For more information, visit IBISWorld’s Single Location Full-Service Restaurants in the US industry page.
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IBISWorld industry Report Key Topics
This industry includes single-location, independent or family operated restaurants that are primarily engaged in providing food services to patrons who order and are served while seated (i.e. waiter and waitress service) and pay after eating. These establishments may provide food services to guests in combination with selling alcoholic and other beverages.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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.