Industry Analysis & Industry Trends
A dramatic health kick has transformed the Fast Food Services industry over the past five years. While revenue is forecast to rise by an annualised 0.7% over the five years through 2014-15, this is largely due to negative returns in 2010-11 and 2011-12. Industry demand has received some support from increased consumer awareness about the nutritional content of fast food and a conscious effort by consumers to choose healthier options. Industry operators have responded with the introduction of a range of healthier, premium choices with lower fat, sugar and salt levels. This change in consumer preferences has also led to an influx of new operators offering higher quality fast-food options. Industry revenue is forecast to post solid growth over 2014-15, rising by 2.7% to total $15.6... purchase to read more
Industry Report - Industry Investment Chapter
The Fast Food Services industry is characterised by a low level of capital intensity. For every dollar spent on wages, $0.08 is invested in capital. Labour costs are a significant part of daily operations. Players require employees to undertake a range of tasks including customer service, production and assembly of food, handling and storage of food in accordance with health and safety regulations, inventory control and clearing tables. Wage costs are influenced by employee numbers, the wage rate and the company's trading hours.
The capital requirements for ongoing businesses are minimal and include the cost of depreciable assets such as refrigerators, freezers, ovens, food warmers and display cabinets... purchase to read more