discussion
1. Discuss the distinguishing features (Market size, Market growth rate, Industry strength, etc.) of the industry.
The world foodservice industry is expected to reach almost $992 billion in 2014, according to Datamonitor (2010), with a volume of over 586 billion transactions. This represents more than 18% growth in five years. 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.
The learning and experience curve for the restaurant industry was low. “Just over 7 out of 10 eating and drinking places in the United States were independent single-unit establishments with fewer than 20 employees.” Because 70 % of competitors were restaurants who could open and close at any time, new entrants did not need large corporate backing and were free to open anywhere. The ability of so many small competitors to enter and compete in the industry indicated a steep learning curve. The steep learning curve and low capital requirement was threat to the industry because of the ease of rivals to enter the industry. The Bakery Cafes industry is a big part of the restaurants industry. The Bakery Cafes industry is heating up as consumers warm to the idea of moderately priced, high quality menu offerings. Bakery cafes specialize in serving flour-based baked goods and complementary food items such as sandwiches, salads and soups for immediate consumption. The industry has surged ahead since the recession and outperformed the overall food service sector, driven largely by changing consumer preferences. Consumers are increasingly demanding healthy, gourmet and custom-made cuisine at an affordable price. Based on these trends, industry revenue is expected to grow at an impressive rate of 6.5% per year on average over the five years to 2013. As operators add more stores in 2013 and consumer awareness of this relatively new segment increases within the food
The world foodservice industry is expected to reach almost $992 billion in 2014, according to Datamonitor (2010), with a volume of over 586 billion transactions. This represents more than 18% growth in five years. 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.
The learning and experience curve for the restaurant industry was low. “Just over 7 out of 10 eating and drinking places in the United States were independent single-unit establishments with fewer than 20 employees.” Because 70 % of competitors were restaurants who could open and close at any time, new entrants did not need large corporate backing and were free to open anywhere. The ability of so many small competitors to enter and compete in the industry indicated a steep learning curve. The steep learning curve and low capital requirement was threat to the industry because of the ease of rivals to enter the industry. The Bakery Cafes industry is a big part of the restaurants industry. The Bakery Cafes industry is heating up as consumers warm to the idea of moderately priced, high quality menu offerings. Bakery cafes specialize in serving flour-based baked goods and complementary food items such as sandwiches, salads and soups for immediate consumption. The industry has surged ahead since the recession and outperformed the overall food service sector, driven largely by changing consumer preferences. Consumers are increasingly demanding healthy, gourmet and custom-made cuisine at an affordable price. Based on these trends, industry revenue is expected to grow at an impressive rate of 6.5% per year on average over the five years to 2013. As operators add more stores in 2013 and consumer awareness of this relatively new segment increases within the food