Sunday, 10 June 2012

Full-Service Restaurants in the UK Industry Market Research Report Now Updated by IBISWorld

The Full-Service Restaurants industry has endured a difficult time during the last five years. The economic downturn has caused many consumers to cut back on discretionary spending such as dining out, trading down to cheaper take-away options or choosing to cook at home instead. Other factors that have put downward pressure on industry growth include several changes in government regulation and policy concerning wage costs, anti-smoking legislation, alcohol tax and food safety laws.

According to IBISWorld industry analyst Steven Connell, “These conditions have forced several struggling operators to exit the industry but for some it has presented opportunities to expand operations”. Revenue is expected to have declined at an annualised rate of 4.5% during the last five years to reach £18.7 billion in 2012-13. In 2012-13, revenue is forecast to decline 1.6%.

Industry performance will improve over the next five years but will be constrained by continued sluggish economic conditions early on. Growth will continue to suffer under the weight of austerity measures, high unemployment and continued global economic uncertainty, which will restrict discretionary spending on dining out.

Conditions should improve from 2014-15 onwards as a recovering consumer environment leads diners to become less value-conscious and spend more on quality and provenance. “Restaurants that tap into prevailing social and environmental trends and continue to emphasise high quality, locally sourced produce should perform best”, Connell adds. Mobile and online technology will also influence the industry as people use smartphone apps to choose restaurants and make reservations. Industry revenue is forecast to increase over the next five years to 2017-18.

The Full-Service Restaurants industry traditionally encompasses a large number of single establishment, owner-operated restaurants. As such, it is fragmented and owners typically compete on price, menu offerings and cuisine. The industry has a low level of market share concentration, which is not expected to change over the next five years. The top four players are Gondola Group, Whitbread, the Restaurant Group, and the Blackstone Group. The industry is known for its large staff turnover. This depends on the number of casual staff who work in the industry while studying. The relatively low wages and lack of a well-defined career path deters many employees from seeing the industry as a long-term employment opportunity.
For more information on the Full-Service Restaurants industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics
This industry comprises sit-down restaurants where a waiter usually takes orders at the table. Restaurants in this industry are licensed to sell alcoholic beverages for immediate consumption on the premises.

No comments:

Post a Comment