III. Industry Analysis
[Company Name] directly or indirectly competes with all food service providers nearby our store that offer similar dining experiences. Competition will come from supermarkets, fast food restaurants, coffee shops, bakeries and other retail establishments. Direct competition will come from companies offering 100% natural, organic foods similar to [Company Name].
Industry Statistics & Trends
The following industry size facts and statistics bode well for [Company Name].
The Fast Food Restaurants industry will continue to play an influential role in the United States food services sector over the next five years. The industry’s ability to provide convenient food at a low price will remain popular, especially with consumers seeking affordable food options. However, the industry will remain highly competitive, forcing fast food chains to compete on price, which will ultimately restrict the industry’s revenue and profit growth. As a result, industry revenue growth is expected to be flat, increasing at an average annual rate of just 1.8% to $248.0 billion.
Fast food restaurants will benefit as the economy continues to improve over the next five years. Steady gains in consumer spending are expected to mitigate any severe decreases in spending at industry establishments, as more money in consumers’ wallets are expected to encourage greater spending, particularly for time-poor consumers returning to work. Additionally, fast food restaurants are expected to continue to expand their menu options away from highly processed foods that are high in fat to cater to changing consumer preferences. This product innovation will play a large part in the industry’s growth over the coming years.