Fast food and food delivery companies are becoming the most dynamic sectors within the commercial restaurant industry. This trend is increasing 2009, with a large decrease of overall household consumption leading to a fall in customer spending within bars and restaurants, combined with customer preferences towards lower cost establishments, according to a recent report on the subject by DBK, a market research firm.
Total sales of fast food and home delivery restaurants increased 4.1% in 2008, up to $3.29 billion. This rate was lower than that of 2007 (+7.3%) and 2006 (+9.2%) with a gradual decrease in the private consumption, especially in the second semester of the year. In 2009, the fast food market is predicted to grow 5%, but the total amount spent in the whole restaurant industry is expected to fall.
Food sales purchased in restaurants continue experiencing the biggest growth, increasing 4.6% in 2008 to approximately $2.84 billion. Also, delivery services sales encountered a change of 1.4%, reaching $574.6 million in 2008.
Estimates indicate that 69% of the global sales in 2008 were for consumption inside establishments, while the remaining sales (31%) were for consumption outside of the eating establishments. Within this last segment, 17% was carry-out service, and 14% was for home delivery.
Market evolution by type of establishment
Hamburger chain sales reached $1.55 billion in 2008, with a growth of 6.3% in this segment. Over 980 establishments existed at the end of 2008, including thirty new openings in the past year mainly done by two of the bigger companies, McDonalds and Burger King, which together dominate nearly 90% of the market share of the industry.
The pizza establishment segment was the one that obtained the poor results in 2008 due to a slight decline on sales (-0.8%) estimated at $736 million. So, although there were more openings than in 2007, the market trend suffered due to a drop in average turnover per establishment.
European style sandwich establishments registered a 4.8% growth in 2008, estimated to be nearly $574 million.
Sales registered by other establishments, accustomed to double digit growth in the previous years, declined as well because of a drop in store openings. Hence, this market value was estimated on $391 million, or 5.3% more than in 2007.
By Jesus Garcia