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 - 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