Restaurants will adjust to lower budgets and health preferences to sustain revenue growth.
Los Angeles, CA (PRWEB) November 22, 2013
The Single Location Full-Service Restaurants industry has bounced back after a slowdown due to reduced consumer spending during the recession. In 2009, revenue declined 0.9%. However, the improving economy and rising consumer spending have led to consistent growth in restaurant spending since 2010. Over the five years to 2013, IBISWorld estimates industry revenue will grow at an average annual rate of 2.3% to $137.5 billion. Revenue is expected to continue its upward trajectory in 2013, growing an estimated 3.1%.
During the recession, consumers spent less on luxuries such as dining out. However, when they did visit restaurants, they purchased lower-priced items. In the battle to capture a share of people's shrinking budgets, restaurants were losing to home-cooked meals or fast-food restaurants. Moreover, consumers have become increasingly health conscious over the past five years. Although major restaurants have responded by expanding the number of healthy options on their menus, the general trend toward healthful eating has hurt many establishments serving traditional greasy options such as hamburgers and pizzas.
According to IBISWorld Industry Analyst Andy Brennan, “The Single Location Full-Service Restaurants industry consists of owner-operated and family-operated restaurants that are independent of chain or franchised networks.” In general, operators are small businesses, so the industry is fragmented and highly competitive. The average establishment generates revenue of about $691,965 and employs 15 people. In addition to internal competition with other single location restaurants, operators also face heavy competition from other food service providers in the hospitality industry, with chain restaurants, fast food stores, hotels and other coffee and snack stores all in direct competition.
The industry is expected to progress over the next five years as the economy improves and consumer spending grows. “Despite the optimistic operating conditions, operators will need to monitor and adjust to shifting consumer preferences,” says Brennan. Rising health consciousness and ethical consumerism will present industry operators with ongoing opportunities to reach niche markets with premium products, in order to increase profitability and revenue. The industry will also likely benefit from longer working hours, population and immigration growth and urbanization.
For more information, visit IBISWorld’s Single Location Full-Service Restaurants in the US industry report page.
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IBISWorld industry Report Key Topics
Single Location Full-Service Restaurants industry includes single-location, independent or family-operated restaurants that provide food services to patrons who order and are served while seated (i.e. waiter and waitress service), and pay after eating. These establishments may sell alcoholic and other beverages, in addition to providing food services to guests.
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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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.