Rising health consciousness is anticipated to continue reducing industry demand
New York, NY (PRWEB) September 30, 2014
The Buffet Restaurants industry has declined over the past five years. Following a drop in industry revenue in 2009, the industry has continued to decline in subsequent years. While industry revenue has been negatively affected by low levels of consumer spending, a more lasting threat to the industry has presented itself in the form of increasing health consciousness. According to IBISWorld Industry Analyst Zachary Harris, “buffet-style restaurants tend to use lower quality ingredients in the food they prepare in order to save costs and keep prices down.” Additionally, most buffets operate on an all-you-can-eat model, in which customers pay a fixed-fee and are then able to consume as much food as they would like, which encourages overeating. Both of these general aspects of buffet restaurants are unappealing to consumers that are dieting or are otherwise conscious of their food consumption habits. Given rising national health consciousness, this has resulted in a decline in the industry's consumer base. As a result, IBISWorld expects industry revenue to decline over the five years to 2014.
“Rising health consciousness is anticipated to continue to reduce demand for the Buffet Restaurants industry over the five years to 2019,” says Harris. However, countervailing trends and industry innovations are forecast to stifle the industry's decline in upcoming years. Firstly, given that much of the industry's revenue is garnered from older consumers, the ageing of the US population will be beneficial to industry operators. Secondly, while the industry has lost its popularity in some regions of the United States, such as New England and the Mid-Atlantic, buffet restaurants are expected to remain popular in the Southeast, Southwest, Plains and Great Lakes regions. Thirdly, industry operators are anticipated to increase their focus on making their restaurants more appealing to health conscious consumers by increasing their offerings of low-fat foods. Finally, the buffet restaurants are expected to increasingly use social media and other innovative marketing techniques to increase their exposure to consumers, which is expected to bring in new customers. As a result, industry revenue is anticipated to decline over the five years to 2019.
For more information, visit IBISWorld’s Buffet Restaurants in the US industry report page.
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IBISWorld industry Report Key Topics
The Buffet Restaurants Industry comprises chain and franchised restaurants with buffet-style services where patrons pay, serve themselves and eat within the restaurant. These establishments may also sell alcoholic and other beverages. This industry does not include buffet-style food service contractors, which are included in IBISWorld reports 72231 and 72232.
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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