Industry Analysis & Industry Trends
The Full-Service Restaurants industry exhibited slow yet consistent growth over the past decade, a trend that is expected to persist in the five years to 2017. Industry growth has been subdued as consumers seek more for their money when spending at restaurants. Along with slow revenue growth, operators have been put under pressure by rising food prices, which have negatively impacted profit margins. The industry is highly fragmented due to the large number of small, independent single-location restaurants in operation. Industry growth is expected to remain steady, though somewhat hampered, over the next five years as the Canadian economy experiences less consistent growth and consumer confidence remains subdued as a result of high household debt... purchase to read more
Industry Report - Industry Investment Chapter
The Full-Service Restaurants industry is subject to a low level of capital intensity. For every $1.00 the average restaurant in the industry spends on wages in 2017, it will spend an estimated $0.09 on the use and replacement of capital.
The industry is highly dependent on direct labour input across all areas of operation, from waiting tables, delivery and food preparation, to liquor and beverage sales, cleaning and operational management. Due to the service nature of the industry, many of these labour-intensive functions cannot be substituted by technology or machinery. To meet customers' expectations and provide a quality and hospitable dining experience, a well-trained staff is required. Lab.. purchase to read more