Steadily improving incomes will help drive industry demand and revenue growth
New York, NY (PRWEB) April 07, 2015
The Italian Restaurants industry is a mature one, providing widely accepted cuisines to downstream consumers. Revenue growth is primarily determined by demand from households, which is ultimately driven by consumer spending and preferences. In turn, the industry has bounced back over the past five years as the improving economy and rising consumer spending have led to consistent growth in consumer spending on restaurants. In particular, the fine-dining segment has done particularly well over the past five years due to the quick recovery in income levels of affluent consumers and the corporate sector. Over the five years to 2015, IBISWorld estimates industry revenue will grow slowly.
Consumers regard dining out as a small, yet affordable, luxury. This fact shielded the industry from the slow recovery of the economy. According to IBISWorld Industry Analyst Will McKitterick, “While industry growth was not stellar, operators were able to achieve year-over-year revenue gains throughout the period.” This increase was due in part to a significant shift in consumer expenditure on quick-service dining items, as consumers opted for lower-priced meals. For example, consumers have indicated a preference for quick-service pizza stores, where pizza can be ordered online, rather than traditional sit-down pizza restaurants. On the other hand, other factors have offset rising demand, including a rising health consciousness movement among consumers, as well as a rising level of competition from supermarkets and fast-food restaurants.
The Italian Restaurants industry has a low level of market share concentration. In 2015, IBISWorld estimates the top four companies make up a small percentage of total industry revenue. While there are well-established and well-known companies and chain Italian restaurants in the industry, there is also a large number of small, independent and locally-focused Italian restaurants in the United States.
Over the five years to 2015, concentration has increased slightly. During this time, unprofitable operators have exited the industry, while the survivors have captured a larger portion of demand. As a result, the remaining companies have increased their overall presence in the Italian Restaurants industry. Most of the industry's largest operators have also grown by successfully expanding their menu options.
Revenue is projected to continue expanding during the next five years, due in part to rising per capita disposable income and, subsequently, higher levels of consumer spending. From 2015 to 2020, revenue for the Italian Restaurants industry is forecast to climb slightly. “The industry's growth prospects will likely inspire new companies to enter the industry,” says McKitterick. Over the same period, the number of industry enterprises is expected to increase marginally. Despite this expansion, competition from alternative food-service providers will remain a key impediment to industry growth.
For more information, visit IBISWorld’s Italian Restaurants in the US industry report page.
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IBISWorld industry Report Key Topics
The industry includes chain and franchised restaurants that mainly provide Italian-style food, including pizza, to patrons. Restaurants may provide this food service in combination with selling alcoholic and other beverages. This industry does not include restaurants that sell a small portion of Italian food as part of a wider cuisine.
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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