III. Industry Analysis
The Sandwich shop industry has performed very well over the past few years and is projected to continue to grow at an annualized rate of 3.4% over the next five years. The Sandwich Shop ndustry will continue to benefit as the economy improves, employment stays strong and consumers begin to spend money on luxuries, such as restaurant dining, more often. During this period, consumer spending is expected to increase at an annualized rate of 1.8%. Additionally, demand for sandwich and sub shops will increase as companies expand their healthy menu options. Aggressive international growth will also reinvigorate major franchises’ overall revenue.
Key industry drivers include:
– Consumer spending- When consumer spending is high, consumers will be more likely to spend money on dining out at sandwich and sub shops.
– Healthy eating index-This is a comparative advantage for healthier sandwich and sub store franchises. Consumers are more aware of the health issues associated with fatty foods and are increasingly going out of their way to avoid them.
– Consumer Confidence Index- Changes in consumer confidence have a significant effect on household expenditure on discretionary items, including purchases made at sandwich shops.