|Last Quarterly Update:||5/13/2013|
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Companies in this industry operate restaurants and other eating places, including full-service restaurants (FSR), quick-service restaurants (QSR), cafeterias and buffets, and snack bars. Major companies include Bloomin’ Brands (Outback Steakhouse, Carrabba’s Italian Grill); Brinker International (Chili’s Grill & Bar, Maggiano's Little Italy); Darden Restaurants (Olive Garden, Red Lobster); McDonald's; and YUM! Brands (KFC, Pizza Hut, Taco Bell).
The US restaurant industry includes about 550,000 restaurants with combined annual revenue of more than $400 billion. Moderate growth is forecast for the next two years. Key growth drivers include innovations in menu items and dining concepts.
Demographics, consumer tastes, and personal income drive demand. The profitability of individual companies can vary: while QSRs rely on efficient operations and high volume sales, FSRs rely on high-margin items and effective marketing. Large companies have advantages in purchasing, finance, and marketing. Small companies can offer superior food or service. The industry is highly fragmented: the 50 largest companies account for about 20 percent of revenue.
Restaurants compete with companies that serve meals or prepared foods, including grocery stores, warehouse clubs, delis, and convenience stores. In addition, restaurants compete with home cooking.
PRODUCTS, OPERATIONS & TECHNOLOGY
Products include appetizers, entrées/main dishes, desserts, and beverages. Companies may specialize in a certain type of cuisine (such as Italian, Chinese, or barbecue); entrée (sandwiches, steak, seafood); or other food item (pretzels, smoothies). Among FSRs, most establishments focus on Italian cuisine, steak, or seafood. ...
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