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Fast Food Restaurants

Fast Food Restaurants

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Executive summary

Over the five years to 2022, the Fast Food Restaurants industry has grappled with shifting consumer preferences and a saturated food service landscape that has kept prices low. The addition and rising popularity of fast-casual restaurants have also benefited this industry as a whole, helping the industry maintain revenue growth, prior to experiencing decline in 2020 amid the COVID-19 (coronavirus) pandemic. Moreover, intense internal and external competition has forced fast-food operators to emphasize low prices in a battle to attract consumers. As a result, industry revenue is expected to increase an annualized 2.8% to $331.4 billion over the past five years, including an increase of 2.9% in 2022 alone.
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industry revenue;

industry profit;

industry margin;

industry employment;

industry major players;

industry key external drivers;

industry product & structure segmentation;

industry key trends;

industry Life Cycle;

industry Geographic Breakdown;

industry Key Success Factors;

industry Key statistics for previous years;

forecast of industry Key statistics for the next 5 years;

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Reference Wordlist

High barriers to entry mean that new companies struggle to enter an industry, while low barriers mean it is easy for new companies to enter an industry.

Compares the amount of money spent on capital (plant, machinery and equipment) with that spent on labor.
IBISWorld uses the ratio of depreciation to wages as a proxy for capital intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is $0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of labor.

The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation using the current year (i.e. year published) as the base year. This removes the impact of changes in the purchasing power of the dollar, leaving only the "real" growth or decline in industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US Bureau of Economic Analysis’ implicit GDP price deflator.

Spending on industry goods and services within the United States, regardless of their country of origin. It is derived by adding imports to industry revenue, and then subtracting exports.

Colloquial Terminology

Consumers born between 1946 and 1964 who account for a major proportion of the population.

Revenue from company-owned stores and franchise fees, but not franchised stores' total sales.

The location where a transaction occurs at a retail establishment or store.

A retail measure used to assess the true performance of retail outlets by taking out the effect of new store openings and only taking into accounts sales growth of existing stores.

Sales from both company-owned or managed and franchised or licensed outlets. System-wide sales excludes royalties and franchising revenue fees.


Eating habits have shifted as consumers have become increasingly health-conscious, demanding alternatives to traditional fast-food options. While major fast-food retailers have expanded their healthy offerings, the general trend toward health awareness has decreased demand for traditional fast-food restaurants in favor of growing fast-casual restaurants. Many major chains have invested in meat alternatives and other dietary changes to attract nontraditional consumers as part of a long-term strategy to adjust to the changing consumer landscape.
Consequently, industry profit, measured as earnings before interest and taxes, marginally declined over the past five years as industry players adjusted their product mix.

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