Industry Analysis & Industry Trends
Recessionary conditions have plagued the Full-Service Restaurants industry over the past five years by undermining consumer confidence, thereby discouraging discretionary spending on dining out. Other factors that have put downward pressure on industry growth include several changes in government regulation and policy concerning wage costs, anti-smoking legislation, alcohol tax and food safety laws. This has caused a number of struggling operators to exit the industry but for some it has presented opportunities to expand operations. In tough economic conditions and amid cautious consumer behaviour, most operators have focused on promoting the provision of quality food at affordable prices and excellent customer service to give consumers the best value for money... purchase to read more
Industry Report - Industry Products Chapter
Licensed restaurants' products include prepared meals for on-site consumption, alcohol, non-alcoholic beverages, takeaway food and catering. The most important source of revenue is selling meals, which accounts for about 66.2% of industry revenue. The recession has forced most operators to review their menu selections in line with increasing demand for more value meal options.
Liquor sales account for about 27.2% of industry earnings. However, liquor sales attract very high taxes; significant movements in liquor taxes can drastically affect prices and therefore demand. It is common for a full-service restaurant to have a range of branded and unbranded products at various price points to suit differing guest budgets. Mixed drinks can achieve high profit margins... purchase to read more