Chain reaction: Rising discretionary income has boosted demand for chain restaurants

The Chain Restaurants industry operates on a specialised business model that represents a hybrid between traditional restaurants and fast-food services. The concept has proven fairly successful in Australia, with industry revenue expected to grow at an annualised 1.3% over the five years through 2017-18 to reach $389.0 million. Rising discretionary income, and increased expenditure on recreation and culture (which tends to boost visits to chain restaurants) have supported this growth. As consumers spend more at entertainment and sporting events, they are often more likely to dine at restaurants in conjunction with these activities. Industry revenue is expected to decrease by more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Rising discretionary income has supported industry revenue growth over the past five years
  • Despite solid revenue growth, the industry has entered a mature stage of its economic life cycle
  • Revenue growth will slow due to volatile consumer sentiment and changing consumer preferences
  • Industry Report - Industry SWOT Analysis Chapter

    The Chain Restaurants industry is in the mature stage of its life cycle. Over the 10 years through 2022-23, the industry's contribution to the economy (industry value added) is expected to rise by an annualised 0.7%, which is a weak performance compared with annualised GDP growth of 2.5% over the same period. This indicates that the industry is growing at a slower pace than the overall economy. Establishment numbers are expected to grow by an annualised 1.0% over the same period.Chain restaurants primarily differentiate themselves through cuisine, with most cuisines already well established. The industry's product range is therefore not expected to expand over the next five years. Establishment growth is also slowing, with a sluggish rise in revenue per establishment. Dem...purchase to read more.

    Additional Insights for the Chain Restaurants Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Chain Restaurants Industry are

  • Proximity to key markets
  • Ability to control stock on hand
  • Ability to attract local support/patronage
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Chain Restaurants industry impact industry performance..

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    What's in this report

    What is the Chain Restaurants Industry?

    This industry comprises sit-down restaurants that provide table service. Companies in the industry consist of three or more locations. The report covers licensed restaurants, BYO restaurants, licensed and BYO restaurants, and unlicensed restaurants.

    Industry Products
  • Steaks, burgers and general food
  • Italian food
  • Mexican food
  • Breakfast food
  • Asian food
  • Industry Activities
  • Chain restaurants specialising in steaks, burgers and general food
  • Chain restaurants specialising in Mexican cuisine
  • Chain restaurants specialising in Italian cuisine
  • Chain restaurants specialising in breakfast food
  • Chain restaurants specialising in Asian cuisine
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from fast food and takeaway food services
  • Health consciousness

  • Current Performance
  • Growing demand
  • Industry characteristics
  • The right market
  • Profitability and other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • Changing consumer preferences
  • Profitability and other trends
  • Table: Chain Restaurants Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Chain Restaurants Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Dairy Produce Wholesaling
  • Fish and Seafood Wholesaling
  • Fruit and Vegetable Wholesaling
  • Liquor Wholesaling
  • Meat, Poultry and Smallgoods Wholesaling

  • Products & Services
  • Italian food
  • Steaks, burgers and general food
  • Mexican food
  • Asian food
  • Breakfast food
  • Chart: Chain Restaurants Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Fourth income quintile
  • Third income quintile
  • Highest income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Chain Restaurants Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Chain Restaurants

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Chain Restaurants Industry

  • Industry Globalization
    Hog's Breath Cafe, La Porchetta Holdings Pty Ltd, Taco Bill Mexican, Fasta Pasta,
  • Table: Hog's Breath Cafe - financial performance
  • Table: La Porchetta Holdings Pty Ltd - financial performance
  • Table: Taco Bill Mexican - financial performance
  • Table: Fasta Pasta - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Chain Restaurants Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Chain Restaurants Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A person with a high level of interest in food and restaurants.
  • Quick Service Restaurant
  • An establishment similar to a fast-food chain, where food and beverages are ordered over the counter, as opposed to in a sit-down restaurant.
  • Traditional Restaurant
  • A single restaurant that provides table service and is not part of a chain of restaurants.
  • What Our Customers Say

    Why buy this report?

    The Chain Restaurants market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Chain Restaurants:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Chain Restaurants market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Chain Restaurants, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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