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《Industry Analysis PP》.ppt
Growth According to Dun and Bradstreet subsidiary First Research, the output of US food and drinking places, which includes fast food restaurants, is forecast to grow at an annual compounded rate of 4.3% between 2007 and 2012. Quick-service restaurants are projected to post sales of $163.8 billion in 2009. Growth According to a leading marketing research company, the NPD Group, the restaurant industry remained stable for most of 2008, although traffic dipped in the fourth quarter, leading to the industry’s slowest traffic and dollar growth since the recession of 2002-2003… The graph shows the total restaurant industry traffic from November 2003 up until November 2008. Prospects for long-term profitability The QSR segment is generally less vulnerable to economic downturns and increases in energy prices than the casual dining segment is, although the economy may adversely impact QSR chains. The following information in the graph is done by First Research and forecasts the estimated growth of the food industry in relation to the economy… National Restaurant Association According to QSR Magazine, “Nearly 7 in 10 adults agreed in a recent National Restaurant Association survey that purchasing meals from restaurants, take-out and delivery places makes it easier for families with children to manage their day-to-day lives, and nearly eight in ten agreed that it is a better way for them to make use of their leisure time rather than cooking at home.” Conclusion Despite the downturn in the economy, the QSR industry will remain a cornerstone of the economy, representing 4% of the U.S. gross domestic product and employing 9% of the U.S. workforce. Future growth in the fast-food restaurant industry depends on how well retailers are able to innovate, provide value for money, and keep up and surpass competitors. Conclusion The fast-food industry is becoming more global and it seems that will continue Fast-food restaurants mostly compete on price, location, and food qualit
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