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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 Brinker International, Darden Restaurants, McDonald’s, and YUM! Brands (all based in the US), as well as Arcos Dorados Holdings (Argentina); Seven & i Food Systems and Skylark (Japan); and Tim Hortons (Canada).
Worldwide food service revenue, which includes revenue from restaurants, totals about $2.3 trillion annually, according to Euromonitor. The countries with the greatest number of consumer food service locations include China, India, Brazil, Japan, and the US.
The US restaurant industry includes about 550,000 restaurants with combined annual revenue of more than $400 billion. 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 compete by offering superior food or service. The US 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 ...
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