Serving the market: Demand for alternative cuisine provides opportunities for new entrants

The Full-Service Restaurants industry has been recovering strongly over the past five years. Industry performance has been largely influenced by trends in consumer preferences. As disposable income and consumer confidence recovered, consumers returned to full-service dining, which supported the industry as consumer tastes became more adventurous. Since the industry returned to its size prior to the 2008 economic crisis, growth has slowed slightly, with revenue increasingly under pressure from the growth of takeaway apps that have drawn customers away from full-service restaurants.Despite strong growth in the industry, some of the biggest restaurant chains in the United Kingdom have struggled to expand...read more.

Industry Statistics & Market Size
Revenue
£21bn
Annual Growth 14-19
3.2%
Forecast Growth 19-24
Profit
Employment
579,692
Businesses
31,492
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Despite strong recent industry growth, some large UK chains have struggled to expand
  • The weak pound since the EU referendum inflates the price of imported produce
  • Barriers restricting free movement could limit the supply of European labour
  • Industry Report - Industry Investment Chapter

    The industry operates in a labour-intensive environment. For every £1.00 that industry operators spend on capital, an estimated £15.91 is spent on labour, indicating a low level of capital intensity. Capital expenditure includes fitting out the restaurant by installing a commercial kitchen and providing tables and chairs, crockery and cutlery, which are typically leased rather than purchased. This conserves working capital and lowers the cost of entry. Therefore, with the exception of the initial capital investment required to establish or purchase a new restaurant, the daily demand for capital is low.Restaurants rely on customer service, so they require a significant amount of labour to operate efficiently. Sta...purchase to read more.

    Additional Insights for the Full-Service Restaurants Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Full-Service Restaurants Industry are

  • Access to niche markets
  • Effective quality control
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Expenditure by household income- highest quintile in the Full-Service Restaurants industry impact industry performance..

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    What's in this report

    What is the Full-Service Restaurants Industry?

    This industry is composed of sit-down restaurants where customers are served while seated or serve themselves at a kiosk. This industry includes both licensed and unlicensed restaurants, but not cafes and takeaway establishments.

    Industry Products
  • Meals for consumption on the premises
  • Alcoholic beverages
  • Non-alcoholic beverages
  • Private functions
  • Industry Activities
  • Providing sit-down meals
  • Serving alcoholic beverages
  • Serving non-alcoholic beverages
  • Hosting private functions
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Expenditure by household income- highest quintile
  • Demand from takeaway and fast-food restaurants
  • Average weekly hours of work
  • Consumer confidence index

  • Current Performance
  • Fresh flavours
  • Delivery method
  • Pricing changes
  • Business rates
  • Chart: Revenue Growth

  • Industry Outlook
  • Economic changes
  • Food for thought
  • Table: Full-Service Restaurants Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Full-Service Restaurants Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Alcoholic Beverage Wholesaling
  • Fruit & Vegetable Wholesaling
  • Meat Wholesaling

  • Products & Services
  • Meals for consumption on the premises
  • Alcoholic beverages
  • Non-alcoholic beverages
  • Private functions
  • Chart: Full-Service Restaurants Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest 30% income households
  • Middle 40% income households
  • Lowest 30% income households
  • Chart: Major Market Segmentation for the Full-Service Restaurants Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Full-Service Restaurants

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Full-Service Restaurants Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Full-Service Restaurants Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Full-Service Restaurants Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Licensed
  • A licensed restaurant is allowed to sell alcohol for consumption on the premises. Takeaway alcohol sales are prohibited.
  • Sit-Down Meals
  • Meals that are ordered with a waiter who serves the table.
  • Tex-Mex
  • A regional American cuisine, combing dishes and flavours of Mexican cuisine with south-western American food.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Full-Service Restaurants market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Full-Service Restaurants:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Full-Service Restaurants market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Full-Service Restaurants, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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