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Grab and go: Operators will offer healthy menu items to grasp a larger share of a saturated market

Abstract

Fast Food Restaurants in the US

Over the past five years, the Fast Food Restaurants industry has struggled with consumer preferences moving away from unhealthy foods and a saturated food service landscape that has kept prices low. Compared with other operators in the hospitality sector, however, fast food restaurants performed relatively well in the early half of the five years to 2016 due to their low price points and the extra convenience they offer. While heavy competition from other segments in the food services sector has forced fast food operators to emphasize low prices in a continuing battle to attract consumers, steady consumer spending has softened revenue losses over the period. As a result, industry revenue is expected to grow over the five years to 2016. Industry growth is expected to slow over the next five years as the domestic economy continues to improve, but consumer confidence is expected to falter somewhat, thanks to the current volatile global economy. Fast food restaurants will continue to operate in a slow-growth environment as many segments of the industry have reached a saturation point. Further, consumers will continue to seek healthy and convenient meal options. Successful operators will therefore need to adapt to changing consumer preferences and competition will keep prices low, cutting into overall growth.

This industry comprises restaurants where patrons pay for quick-service food products before eating. Purchases may be consumed on-site, taken out or delivered. Gross revenue is derived from both franchised and company-owned stores. Franchise fees (up-front costs associated with opening a franchise) are accounted for in industry revenue. This industry excludes coffee and snack shops. Most industry establishments also sell beverages, such as water, juice and sodas, but usually not alcohol.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.



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Table Of Contents

Fast Food Restaurants in the US - Industry Market Research Report

TABLE OF CONTENTS

ABOUT THIS INDUSTRY
Industry Definition
Main Activities
Similar Industries
Additional Resources

INDUSTRY AT A GLANCE

INDUSTRY PERFORMANCE
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle

PRODUCTS and MARKETS
Supply Chain
Products and Services
Demand Determinants
Major Markets
International Trade
Business Locations

COMPETITIVE LANDSCAPE
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalization

MAJOR COMPANIES

OPERATING CONDITIONS
Capital Intensity
Technology and Systems
Revenue Volatility
Regulation and Policy
Industry Assistance

KEY STATISTICS
Industry Data
Annual Change
Key Ratios

JARGON and GLOSSARY


MAJOR COMPANIES

Yum! Brands Inc.

McDonald's Corp.

Subway

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