Global Industry Guide: Restaurants Gale Global Market Overviews: 2006
Restaurants are involved in retail sale of prepared food and drinks for on-site or quick consumption, just like fast-food eating places, diners, refreshment stands, and full-service restaurants. Caterers and institutional meals service establishments are also included in this category.
Huge fast-food restaurants lead the restaurant market, which simply by 2005 consisted of approximately eight million eating places worldwide within an extremely competitive environment. Most restaurants were single unities, independently owned and managed, while about 300 companies were involved in chain restaurants. McDonald's was your world's leading restaurant sequence in terms of revenue and the second largest based upon number of sites. Yum! Brands, formerly Tricon Global Restaurants Inc., was your world's second largest cafe company regarding sales, with 33, 500 units in 100 countries, and the major in terms of cafe units. It is major brands were also global leaders in their markets: KFC (chicken), Pizza Shelter, and Taco Bell (Mexican-themed). In the foodstuff service sector, Compass Group PLC placed as the world's most significant company, followed by Sodexho Alliance SA. Around the world, the restaurant industry observed considerable growth in the year 2003 as the economy began to stabilize and customer confidence elevated. According to Euromonitor, the industry grew 4. 5% in the United States, achieving US$189. being unfaithful billion. In great britain, the market grew three or more. 0 percent, to US$23. 1 billion dollars. China as well experienced growth of 9. some percent to US$110. 4 billion. The industry in France held stable at US$33. 9 billion, but the Western market lowered 7. 5 percent to US$138. 8 billion dollars.
Organization and Structure
Traditionally, the restaurant industry provides consisted of two main areas: full-service restaurants (including relatives restaurants, everyday dining establishments, evening meal houses, and grill-buffets) and quick services restaurants (QSR), also known as pret a manger restaurants. The QSR sector typically serves hamburgers, poultry, sandwiches, pizzas, Mexican meals, and lunch break and snack food items. The National Restaurant Association (NRA) of the United States breaks the market down further, into eating places that provide full menus with table services, limited selections with desk service, and limited choices without table service. Of establishments having a limited menu and featuring table assistance, most are small , independently possessed operations. The restaurant sector is a older industry, and many countries, such as the Usa and in Traditional western Europe, competition is very challenging as many markets are over loaded. In addition , eating places must contend with expanded supermarket offerings that include a vast variety of frozen food, deli foods, and other fully or partly prepared meals for at-home dining. Therefore, many large restaurant firms have considered acquisition to expand their very own menu offerings, to increase their number of spots, and to get market share in a region or perhaps niche that previously was unavailable to them. Franchising. Since the 1970s, the growth of franchising provides propelled the expansion of the larger restaurant industry. The popularity of franchising comes from the parent company's capacity to expand devoid of as much expenditure, as start-up costs are usually paid simply by whoever acquisitions the business. In addition to a permit fee and equipment and stock buys,
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the local owner, or franchisee, pays the franchiser royalties based on product sales. For anyone buying right into a well-known franchise, this is an incredibly low-risk investment, when compared with 3rd party eating institutions, which do not come with an established consumers to be drawn on. However , franchise...