Companiesandmarkets.com

Global restaurant industry to be worth $3.5 trillion by 2016

Press Release   •   Jul 03, 2013 17:03 BST

The global restaurant industry has been forecast to increase at a compound annual growth rate (CAGR) of 7.2% over the next three years, rising from total revenues of $2,457.1 billion in 2011, to a value of $3,482.5 billion by the end of 2016.

Cafés and restaurants represent the leading market segment at over 50% of overall industry value. Regionally, Asia-Pacific holds almost 43% of the world foodservice industry market share.

Industry consumption volumes increased with a CAGR of 1.8% between 2007 and 2011, to reach a total of 64.7 million employees in 2011, according to a recent report titled 'Restaurants: Global Industry Guide.'

Food demand is rising in tandem with the global population. Increasing urbanization and a general exodus from rural areas to urban areas is causing a change in lifestyle trends, particularly surround eating habits.

With increasing numbers of people working in office environments and growing family households with two parents in the workforce, time to prepare food at home is limited. Consumers under time constraints are opting to eat outside in cafés and restaurants, with price-conscious consumers often turning to fast-food options such as mobile trucks and street stalls.

Although late, the restaurant sector is nevertheless catching up with healthy eating trend. A majority of restaurant goers in the United States prefer healthy food items in restaurants. Organic food, beverages and food with less trans-fats are increasingly finding their place in restaurant menus.

Quick Service Restaurants (QSRs) are most noteworthy given the strides taken by this category of restaurants in changing menus to include healthy foods. Freshly prepared salads and fresh cut meats have become part of standard menus at QSR outlets.

A growing number of people are comparing restaurant menu items and their nutritional benefits on the internet. Also increasing number of people are making restaurant choices based on online reviews.

Restaurateurs' are leveraging the Internet and social networking platforms to compete more effectively in the food service marketplace. Internet and social networking sites help restaurants to communicate the range and quality of food items served and thereby reaches out to a larger section of customers.

Major players in the fast food industry such as McDonald and Burger King have all established their franchises in the domestic as well as overseas market in order to expand their reach and drive gains. Untapped franchise opportunities in other food service segments such as pubs, pub restaurants, exotic fast food restaurants, snack bars, coffee shops, ice cream parlours and cafés augurs well for the future of this market.

For more information on the global restaurant industry, see the latest research: Global Restaurant Industry

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