Industry Analysis & Industry Trends
The Full-Service Restaurants industry has endured a difficult time over the past five years. Operators have had to contend with challenging conditions as a result of the prolonged effects of the economic downturn. During this time, many consumers were forced 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 also prevented growth for much of the five-year period. Industry profitability is estimated to have dropped because of declining patronage, falling prices and rising labour and food costs... purchase to read more
Industry Report - Starting a New Business Chapter
There are no significant barriers to entering this industry, although some operators may face challenges in generating the initial capital funds to purchase or lease a suitable site. The industry has a large number of small owner-operators and is fragmented. However, competition can be fierce, particularly as many restaurants are located near others. Increasing regulation of food handling and safety must be recognised and complied with. Meeting these requirements usually requires access to professional staff training programmes.
The level of product differentiation among operators can provide an advantage to some restaurants over others. Promotions and restaurant branding can reinforce this... purchase to read more