Industry Analysis & Industry Trends
The Pizza Delivery and Takeaway industry has expanded rapidly over the past five years, buoyed by increasing consumer preference for convenience and affordability. Although spending conditions were subdued in the early part of the past five-year period, the industry is expected to grow at a compound annual rate of 5% over the five years through 2016-17. At the start of the period, constrained real wages squeezed consumers’ spending capacity, and many people opted to stay in rather than dine out as a way of reducing their expenditure. Industry operators capitalised on this by launching aggressive advertising campaigns and a series of promotional deals to entice consumers. Major sporting events, such as the FIFA World Cup, have also had a positive effect on revenue... purchase to read more
Industry Report - Industry Investment Chapter
The Pizza Delivery and Takeaway industry has a moderate level of capital intensity. IBISWorld estimates that for every £1.00 spent on capital, operators spend £7.55 on wages. Capital requirements for the industry include a commercial kitchen fitted with pizza ovens and heaters. Operators also rely on computerised stock control and many have established online platforms, which adds to capital costs.
However, wages still account for a significant proportion of revenue. Employees are required to work on the shop floor and operators must provide a high level of customer service to retain customers. Capital intensity has increased over the past five years, since operators have adopted technology to automate processes. Lar.. purchase to read more