NEW YORK, Dec. 19, 2016 /PRNewswire/ -- Compared with other operators in the hospitality sector, fast food restaurants performed relatively well in the early half of the five years to 2016 due to their low price points and the extra convenience they offer.
For the full report, visit IBISWorld's Fast Food Restaurants in the U.S. industry report page.
While heavy competition from other segments in the food services sector has forced fast food operators to emphasize low prices in a continuing battle to attract consumers, steady consumer spending has softened revenue losses over the period. As a result, industry revenue is expected to grow an annualized 2.7% to $227.5 billion over the five years to 2016.
Industry growth is expected to slow over the next five years as the domestic economy continues to improve, but consumer confidence is expected to falter somewhat, thanks to the current volatile global economy. While no severe revenue declines are expected, fast food restaurants will continue to operate in a slow-growth environment because many segments of the industry have reached a saturation point. Further, consumers will continue to seek healthy and convenient meal options. According to IBISWorld Industry Analyst Andrew Alvarez, "Successful operators will need to adapt to changing consumer preferences as the traditional concept of fast food evolves to include a wider variety of options." Competition will keep prices low, cutting into overall growth over the next five years.
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IBISWorld Industry Report Key Topics
Products & Markets
Globalization & Trade
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