The Global Fast Food Industry: the Market
Exclusive extracts from this 91-page-long report:
- What is the business?
International fast food restaurant chains either own and run their restaurants, or franchise their concepts to franchisees, or combine ownership and franchising depending on local market conditions. A general trend towards franchising, as opposed to ownership, has been seen among leaders in recent years. However, some major players, including Starbucks (about 50% owned stores) and Chipotle (100% owned stores), buck this trend. […]
- What are the main markets?
The penetration of fast food restaurants is increasing but varies considerably between major markets: it stands at 45% in the US (a world record) against 14% in South Korea, 16% in India and 22% in China. The fast food segment has outperformed the wider foodservice industry in most markets in recent years and growth should remain firm through 2023, provided the global economic environment remains favourable. [...]
- Who are the key players?
The foodservice industry is very competitive owing to its fragmented, diverse, and changing nature. Synergies and economies of scale are limited and groups with a significant regional foothold are rare. Groups with a real international presence are an exception. The fast food industry's undisputed leader, McDonald's, generates retail sales representing less than 3% of total global foodservice revenue. [...]
- How intense is competition?
The competitive environment has proven challenging in recent years and has forced leaders to implement or accelerate changes. Leaders have three main priorities: accelerate expansion through franchising agreements, make full use of new technologies to reduce costs and improve customer experience, and continuously adapt restaurant concepts, menus and items to changing customer tastes. [...]