Industry Analysis & Industry Trends
The Full-Service Restaurants industry has endured a difficult time over the past five years. The economic downturn caused many consumers to cut back their discretionary spending on activities such as dining out. Some traded down to cheaper takeaway options or chose to cook at home instead. Changes to government regulation and policies concerning wage costs, alcohol tax and food safety have prevented growth. Industry profitability is estimated to have dropped because of declining patronage, falling prices and rising labour and food costs. Several struggling operators have been forced to exit the industry but some have found opportunities to expand their operations... purchase to read more
Industry Report - Industry Analysis Chapter
The economic downturn and changes to government policy have made trading conditions for restaurants extremely challenging over the past five years. Many people have made fewer restaurant visits or traded down to takeaways or supermarket ready meals. Rising food and labour costs and declining alcohol consumption have also taken their toll on the industry, driving down average profit margins. IBISWorld expects industry revenue to contract at a compound annual rate of 2.1% over the five years through 2014-15, reaching £20.1 billion.
A better year ahead
After a difficult period, industry revenue is forecast to return to growth in 2014-15 and rise by 2.2% as economic conditions strengthen... purchase to read more