As incomes and corporate profit declined, spending at premium steakhouses fell
New York, NY (PRWEB) April 23, 2015
The Premium Steak Restaurants industry has fared relatively well over the past five years. As the economy started recovering in 2010, consumers returned to restaurants to purchase high-end meals. Over the five years to 2015, industry revenue is expected to grow. Revenue is projected to grow in 2015, mainly a result of increased spending by wealthier consumers and companies returning to their business lunches.
According to IBISWorld Industry Analyst Antal Neville, “Despite an increase in consumer spending driving demand, this industry has had to weather higher beef costs and changes in consumer preferences toward organic and locally produced goods.” Both trends affected the way companies conducted business in this industry. Major restaurants have expanded the number of healthy options on their menus and began to source more of their ingredients from local providers. Some steakhouses have made the healthy factor a core component of their marketing strategy, enabling them to target new segments of the market. As the cost of beef directly affects profit margins, many companies have increased menu prices to offset higher food costs.
In the five years to 2020, industry revenue is expected to increase. Revenue will grow strongly as personal incomes rise and consumers increase their spending on discretionary items, such as expensive meals. “Companies will also increase their spending on the industry's products and services as corporate event and dining activities rebound,” says Neville. Despite this growth, steakhouses will continue to face high beef prices and changing consumer preferences, resulting in some companies adjusting the way they do business.
For more information, visit IBISWorld’s Premium Steak Restaurants in the US industry report page.
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IBISWorld industry Report Key Topics
The Premium Steak Restaurants industry includes chain, franchised and single-location restaurants that provide premium steak to consumers. Customers order and are served by waiters or waitresses while seated, and they pay after eating. These establishments may provide food services 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
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