Industry Analysis & Industry Trends
Consumer health awareness has transformed the Fast Food Services industry over the past five years. While revenue is forecast to rise by 2.4% annualised over the five years through 2015-16, the industry struggled during 2010-11 and 2011-12 as sales declined. Industry demand has been affected by 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 less fat, sugar and salt. 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 grow over 2015-16, rising by 0.8% to total $14.8 billion... purchase to read more
Industry Report - Starting a New Business Chapter
The industry is characterised by medium barriers to entry and the trend is steady. While operators are able to enter the industry with relative ease, gaining a sustainable market share is much more difficult. Capital intensity and the rate of technological change in the industry are low, which is an incentive for new players to enter. Ongoing investment in equipment is minimal for the industry compared with the daily labour input and associated wage costs.
Prime locations for fast-food operators are becoming difficult to find as the industry moves towards saturation. High competition for locations has pushed rental costs upwards over the past five years, making it difficult for new entrants to locate themselves close to customers... purchase to read more