My business plan is to open a franchise of little Caesars in Jackson Heights, Queens NY. First let’s look at the fast food industry as a whole. History of the industry
The concept of fast food is inspired by ancient Rome, in which bread and wine were sold in street-side stalls. In early 20th century In the United States, fast food history is associated with the introduction of drive-in restaurants. Since then, US industry of fast food has come a long way to become the largest fast food industry in the world. One of the pioneers of this field is White Castle, was founded in Kansas, in 1921, one of the major names when it comes to the American fast food sector. In 1930's, the American fast food industry achieved yet another milestone - when Howard Johnson's introduced the concept of franchising restaurants in the United States. NAICS Code and industry Description
According to NAICS Fast food restaurant 722211, “The restaurant industry comprises establishments primarily engaged in providing food services (except snack and nonalcoholic beverage bars) where patrons generally order or select items and pay before eating. Food and drink may be consumed on premises, taken out, or delivered to the customer’s location. Some establishments in this industry may provide these food services in combination with selling alcoholic beverages”. (Census) Growth of Industry
Since 1982, consumers starting spent more on fast food as compare to table service restaurant, according to figures this annual growth rate turns into 6.8% as compare to 4.7% growth rate through 1997. This amount increased from 29.3 to 34.2 % between 1982 and 1997, while the restaurant proportion decreased from 41 to 35.7 percent. As per a research of “US Fast Food Market Outlook 2010”, despite the growing concerns such as rising health consciousness and increasing incidences of obesity in the US population the US fast food industry has been witnessing impressive growth for the past few years. This research shows that during the economic down fall it was the only industry that benefited as people have changed their food habits from spending more money on dinning outside at restaurants to fast food products. It was expected that the fast food market will grow at a CAGR of around 5% during 2009-2011. . (Mark)
According to the restaurant association in 2010 sales of restaurant industry are $580 billion; these restaurants are located over 945,000 locations, having 12.7 million employees (one of the largest private-sector employers) across United States of America. Here are some more facts about restaurant industry: * $1.6 billion: Restaurant-industry sales on a typical day in 2010. * $2,698: Average household expenditure for food away from home in 2008. * 40 percent of adults agree that purchasing meals from restaurants and take-out and delivery places makes them more productive in their day-to-day life. * 73 percent of adults say they try to eat healthier now at restaurants than they did two years ago. * 57 percent of adults say they are likely to make a restaurant choice based on how much a restaurant supports charitable activities and the local community. * 78 percent of adults say they would like to receive restaurant gift cards or certificates on gift occasions. * 52 percent of adults say they would be more likely to patronize a restaurant if it offered a customer loyalty and reward program. * 57 percent of adults say they are likely to make a restaurant choice based on how much a restaurant supports charitable activities and the local community. * 56 percent of adults say they are more likely to visit a restaurant that offers food grown or raised in an organic or environmentally friendly way. * 78 percent of adults agree that going out to a restaurant with family or friends gives them an opportunity to socialize and is a better way to make use of their leisure time than cooking and cleaning up. (National restaurant association-1) In...
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