NEW YORK, Nov. 17, 2016 /PRNewswire/ -- The Chain Restaurants industry has experienced steady growth over the five years to 2016. During the five-year period, as per capita income increased and unemployment declined, consumer confidence improved, giving rise to greater spending on sit-down meals.
Although the average industry profit margin remains slim, profit margins at most chains have increased over the past five years, as revenue has grown and costs have been kept under control. Over the five years to 2016, industry revenue is expected to increase at an annualized rate of 4.3% to $107.6 billion.
The industry's run of steady growth is projected to moderate over the five years to 2021. Consumers will increase their spending at restaurants as the economy continues to improve and unemployment dissipates. "However," notes IBISWorld Industry Analyst Andrew Alvarez, "increasing competition from a growing number of fast, casual restaurants that serve high-quality food at reasonable prices and have business models that are not reliant on large overheads will continue to threaten industry profit margins." For this reason, major full-service restaurant chains will increasingly push operations abroad to emerging economies for growth.
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