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Global Fast Food Restaurants

Global fast food restaurants market: $645.6 billion industry by 2018

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2014-01-30 09:27:01 - Global Fast Food Restaurants - a new market research report on

During the past five years, the Global Fast Food Restaurants market has expanded despite changing consumer tastes and a struggling global economy. As disposable income decreased due to the recession, consumers cut back on luxuries like eating out. However, fast food operators outperformed full-service restaurants during this time as many consumers found room within their budgets for lower-priced and convenient food options. The industry also experienced steady and growing demand from emerging economies, which boosted the industry´s overall performance.

Despite countering global economic trends, the industry has been forced to adapt to increasingly health-conscious consumer preferences. While major fast food retailers have responded by expanding the number of healthy options on their menus, the general trend toward health awareness has hurt



demand for the typically greasy food provided by the these restaurants. Over the five years to 2013, industry revenue is expected to grow at an average annual rate of 2.5% to $526.2 billion. This includes growth of 3.6% in 2013.

In many developed nations, the industry is approaching saturation levels due to an oversupply of fast food businesses and extensive franchising. This is resulting in weaker revenue growth and intense price-based and product-based competition. Given the cutthroat competition that exists in developed nations, operators have made a major push into growth markets in emerging economies, including Asia, Russia, South America and India in order to expand their revenue and profit. While emerging nations are estimated to account for only a small portion of global fast food revenue in 2013, the industry´s revenue has been growing much more quickly in these countries over the past five years than the global industry.

Over the next five years, most fast food chains are expected to continue to introduce new healthy food alternatives and expand their current product lines. This includes offering more made-to-order menu items using fresh and possibly even organic produce, and much less fried food. While these changes will involve fewer standardized menu selection purchases, consumers are expected to be more willing to pay higher prices for healthier food selections. This, along with continued expansion in emerging nations will result in industry revenue growing 4.2% per year on average to $645.6 billion during the five years to 2018.

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