Industry Analysis & Industry Trends
Over the past five years, industry revenue has declined due to subdued growth in demand and fierce price-based competition on menu items between industry operators. The recent global economic downturn has caused falls in real household disposable income, particularly as the unemployment rate remains at or above 8.0%. Customers are responding by cutting back on discretionary spending, including reducing their total expenditure on take-away and fast foods. Overall, industry revenue has declined at an annualised rate of 2.9% over the past five years to total £4.8 billion in 2011-12. Industry revenue is forecast to grow at just 0.1% this year, given the prevailing economic uncertainty and low consumer sentiment... purchase to read more
Industry Report - Industry Analysis Chapter
Take-away businesses and fast-food restaurants are suffering due to the tightening of household budgets. Consumers, many of whom have large loans to pay back, are increasingly uncertain about the performance of the UK economy and are continuing to minimise unnecessary spending. One area where people can save money is take-away food purchases, which means companies in the industry are suffering from a drop in demand for their products. The recession led to a dramatic fall in growth in household disposable income, as unemployment rose to 8.0% despite the rapid decline in interest rates. Unemployment levels will remain high and continue to rise over 2011-12, which will squeeze household budgets even more... purchase to read more