Industry Analysis & Industry Trends
The industry has performed relatively well over the past five years. The consumer preference for cheaper, on-the-go food has persisted despite the improving consumer backdrop of the past five years. Takeaway operators have also responded to higher levels of consumer expenditure by introducing higher quality food, often using organic produce. Operators in the industry have had to respond to consumer demand for low-fat, low-sugar and low-salt meal options. Some operators have responded to this trend by adding healthier options to their menus. Mobile and online technologies have had a considerable influence on the industry’s development and many operators now offer online ordering and delivery services.
Industry profitability has been relatively poor recently... purchase to read more
Industry Report - Industry Investment Chapter
The Takeaway and Fast-Food Restaurants industry has a medium level of capital intensity. For every £1.00 spent on capital, approximately £6.81 is invested in labour. Capital expenditure relates to fitting out a restaurant, which involves installing a commercial kitchen and purchasing tables and chairs, crockery and cutlery and all cooking equipment and utensils. Typically, many of these items are leased rather than purchased so operators can take full advantage of favourable tax arrangements put in place by the government. This also conserves working capital and lowers the cost of entry. The industry also relies considerably on the franchise model. Consequently, many of the start-up costs involved with opening an establishment are incurred by the franchisee rather than the operator. In .. purchase to read more