Industry Analysis: Fast Food Industry in United States
It’s no secret, Americans love fast food and it’s not only just them! This new trend in the food industry has spread all around the globe; thereby, making it one of the fastest growing segments in the food industry. The main characteristics of the fast food industry are quick preparation and service of food such as Burgers, Fries, Pizzas, and wraps. They provide minimal table services, and offer on-site consumption or take out services. Frequently, the food is standardized and shipped from a central location. Normally, they served pre-heated or pre-cooked fast, and efficient food at affordable prices. The demand of products in this industry is driven by consumer taste and personal income. The profitability of the companies depends on efficient operation and product marketing.
The IBISWorld, a statistics portal, that collects data and conducts research for over 1,000 industries presented facts and statistics regarding United States fast food industry. As we can see from the exhibit 1, the fast food industry in the United States generated 191.03 billion U.S dollars in 2013; this figure was forecasted to exceed 210 billion by 2018 (IBISWorld, 2014). IBISWorld also put forward that in 2013, there were more than 232,000 fast food establishments in the United States, employing over three and a half million people (IBISWorld, 2014). According to the Intelligence Report on fast food restaurants by Ideologic Branding Agency, this fast food industry in the United States is highly fragmented: the 50 largest companies account for only 20% of the revenue (Ideologic Branding Agency, 2013). Today, the United States market has one of the largest fast food industries in the world, and more than 100 countries around the world would have franchised American-owned fast food restaurants. The fast food industry in United States is highly disintegrated and therefore, for any investor to enter this industry a thorough analysis of the industry is required. This report briefly
The IBISWorld, a statistics portal, that collects data and conducts research for over 1,000 industries presented facts and statistics regarding United States fast food industry. As we can see from the exhibit 1, the fast food industry in the United States generated 191.03 billion U.S dollars in 2013; this figure was forecasted to exceed 210 billion by 2018 (IBISWorld, 2014). IBISWorld also put forward that in 2013, there were more than 232,000 fast food establishments in the United States, employing over three and a half million people (IBISWorld, 2014). According to the Intelligence Report on fast food restaurants by Ideologic Branding Agency, this fast food industry in the United States is highly fragmented: the 50 largest companies account for only 20% of the revenue (Ideologic Branding Agency, 2013). Today, the United States market has one of the largest fast food industries in the world, and more than 100 countries around the world would have franchised American-owned fast food restaurants. The fast food industry in United States is highly disintegrated and therefore, for any investor to enter this industry a thorough analysis of the industry is required. This report briefly
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