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Fast Food and Quickservice Restaurants Industry Profile Excerpt
| SIC Codes: 5812 NAICS Codes: 722211 Page Length: 10-12 Last Quarterly Update: 5/19/2008 View Sample Industry Profile |
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The fast food and quickservice (fast food) restaurant industry includes about 200,000 restaurants with combined annual revenue of about $120 billion. Major companies include McDonald's, Burger King, Taco Bell, Subway, and Panera Bread. The industry is highly fragmented: the top 50 companies hold about 25 percent of industry sales.
COMPETITIVE LANDSCAPE
Demographics and personal income drive demand. The profitability of individual companies depends on efficient operations, effective marketing, and the ability to provide fast service. Large companies have advantages in purchasing, financing, and marketing. Small companies can compete by offering unique products or serving a local market. The industry is highly labor-intensive: average annual revenue per worker is just under $40,000.
Fast food restaurants differ from fullservice restaurants in that customers generally order and pay before eating. The category includes fast-casual restaurants, which offer higher quality, more expensive food without waitstaff. Fast food restaurants compete with companies that offer meals or prepared foods, including fullservice restaurants; supermarkets; delis; convenience stores; snack shops (donut or bagel shops); and cafeterias.
PRODUCTS, OPERATIONS & TECHNOLOGY
Most restaurants specialize in main dish categories, including hamburgers, sandwiches, chicken, pizza/pasta, Mexican food, Asian food, or snacks. Among the major fast food chains, hamburger restaurants are 50 percent of the market; sandwich, pizza, chicken, and snack shops are each 10 percent; and Mexican food is about 5 percent, according to QSR magazine. Side dishes include French fries, baked potatoes, soup, chili, onion rings, salads, ...
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