Industry Analysis & Industry Trends
Changing social trends have fuelled a recovery of the Restaurants industry over the past five years. Bouncing back from a low point during the global financial downturn, the industry posted annualised growth of 5.6% over the period. Performance was solid in 2013-14, with the industry growing by 3.1% to $11.4 billion. This strong growth, although somewhat attributable to a bounce after losses during the global financial crisis, can also be attributed to changing social trends. Busier lifestyles, longer hours at work and an increasing squeeze on leisure time have led more and more consumers to turn to restaurants as a solution. Restaurants have allowed consumers to combine mealtime with leisure and avoid the time involved in food preparation... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the Restaurants industry are low. This is indicated by the high rate of entries and exits of establishments in the industry. Low initial capital outlays and low industry concentration play a significant role in reducing barriers to new entries. New restaurateurs can enter the market with minimal set-up costs by leasing premises, equipment, furniture and settings. In addition, there is no formal qualification required to operate in the industry, although experience and training in hospitality are desirable and can assist profitability.
Low industry concentration means new entrants can acquire market share relatively easily and quickly without being encumbered by dominant major players... purchase to read more