Fast Food Industry Analysis 2018
Fast Food Industry Analysis 2018
You likely know more about the fast food industry than you
realize. If you live in the United States - or pretty much anywhere
else - it’s everywhere. Off of every exit on the highway, and at
every rest stop. In the food court at the mall, and on the
commercial strips on the outskirts of town. In cities and at
airports.
What you may not have noticed, though, is the changing dynamics
within the industry. The last several years have seen an absolute
explosion of diversity in both restaurant concepts and menu
choices. This evolution reflects an industry that has been
responsive to changing consumer tastes as well as entrepreneurs
finding niche opportunities to profit.
The Industry
Globally, fast food generates revenue of over $570 billion - that
is bigger than the economic value of mostcountries. In the United
States revenue was a whopping $200 billion in 2015 - quite a lot
of growth since the 1970 revenue of $6 billion. The industry is
expected to have an annual growth of 2.5% for the next several
years - below the long term average but coming back from a
several year slump.
There are over 200,000 fast food restaurants in the United States
and it is estimated that 50 million Americans eat at one of them
every single day. The industry employs over 4 million people and
counting - restaurant franchises added over 200,000 jobs in 2015.
Menus are also the same from location to location, and consumers
enjoy a recognizable, familiar experience no matter where they
are, with a dependable level of quality. Meal choices are
inexpensive, with options typically $6 or less with combo meal
packages combining “signature” mains with sides and a drink.
The United States fast food market continues to be dominated
byhamburger fast food restaurants, accounting for over 30% of
industry sales. However that market share is sliding, and Mexican
food in particular has been gaining.
Within the last several years employees have been organizing and
demanding increased wages - winning their fight in NYC and
several other major metropolitan areas. Fast food restaurants
have high human resource costs due to staffing the kitchen, the
counter and the cleaning crews - and any increase in wages
crunches the bottom line. Only some of these costs will be able to
be passed on to the consumer.
Cultural degradation.
Drive-thru and stand alone stores still dominate the fast food
landscape, but some chains are exploring new options such as
counter service within larger stores, catering and even delivery.
Looking to become a fast food franchisee?
Here’s what you should look for when evaluating your
options.
Efficient operations. Fast food franchises benefit from
consistent delivery of both food and experience - look for
franchise opportunities with a proven and cost effective system.
Effective marketing. As a franchisee you don’t have to
handle the marketing - but you sure want to make sure the
mother ship knows what they’re doing. With so many options
to choose from it’s important that a franchise can effectively
market their unique value proposition.
Innovative menus. Menu options need to be creative and
offer both healthy and indulgent options. New plays on old
favorites, healthier versions of classics, or unique flavor profiles
like a spicy dessert are just a few examples.
Know Your Niche. There is something to be said for the
traditional burger joint - some would say don’t fix what isn’t
broken - but increasingly specialty or regional food options are
gaining in popularity. Figure out what will work in your
community.
Effective use of technology. Many franchises are using
the same exact model of limited service that launched in the
50's. Restaurants with kiosk or automated table ordering help
keep costs down. Look for an iPad.
Research your local market
The fast food industry is an institution - it’s here to stay. If you are
searching for a franchise opportunity, look for chains that fit your
local market, have some price flexibility, are willing to be creative
with the menu and are operationally efficient.
The country's fast-food market today is only one tenth the size ofChina's,
said Ajay Kaul, CEO of Jubilant FoodWorks, a company that grants franchises
in India for Domino's Pizza and Dunkin Donuts. But unlike China, which saw a
decline in fast-food sales last year, India's market is expected to grow,
thanks to changing consumer preferences and the largest youth population
on earth.
"I would think it's a revolution waiting to happen," Kaul said.
India's population stands at 1.2 billion, but it has only a little over 2,700
chain fast food outlets, leaving most people unreached, according to
Euromonitor International. Fast food has yet to broadly expand beyond the
largest cities. India also has a new prime minister, Narendra Modi, who has
been a vocal advocate of increased foreign direct investment.
Jatia plans to establish 175 to 250 McDonald's restaurants in the next five
years across west and south India.
McDonald's tweaked about 70 percent of its menu for the Indian market,
according to Euromonitor. That meant staying away from beef in a country
where cows have religious significance, and appealing to a population that
tends to enjoy spicy food with options like McSpicy Paneer and Chicken
Maharaja Mac. They've also opened some 100 percent vegetarian
restaurants. (That said, contrary to perceptions, nearly 70 percent of India's
population is non-vegetarian.)
"We have localized our menu and due to this, we are not just seen as an
international brand, but one which the people of India feel comfortable with,"
said Jatia.
KFC, owned by Yum! Brands, had a slight edge over McDonald's because of
its chicken-centered menu, which has worked well in India, said Arvind
Singhal, chairman of Technopak, a management consulting firm in India.
While the U.S. chains have "Indianized" their menus, Singhal said that only
partly explains the rising appeal of fast food in India.
The country has 356 million people between the ages of 10 and 24, giving it
the world's largest youth population, according to a United Nations report.
With more young people entering the workforce daily, growth in the
economy, a rising female work force, and increased mobility among
consumers, the traditionally difficult Indian market has become hungry for a
more diverse menu, Singhal said.
A challenge for America's fast-food joints in India has been to maintain the
cohesion of the global brand while still appealing to the local market, said
Kaul of Jubilant.
"There is an extent for localization," Kaul said. "You can't tamper with the
global brand, it has to be same as anywhere else in the world."
Read MoreGlobal middle class hungers for good ol' US fast food
Domino's now generates more than 17.2 billion rupees ($277 million) in
revenue, compared with $222 million for McDonald's. Domino's, which is
valued at $1.6 billion in India, has tried expanding its business by getting
Indian consumers to view pizza as a meal replacement, and not just a snack,
Kaul said.
When it comes to the fast-serve coffee industry, most Indians still refrain
from the American habit of daily, morning drinking before and during work.
To get around the cultural challenge, Dunkin Donuts entered the food
market, offering fast-food sandwiches—the only country where the chain
does so.
"What's important for an American brand to understand is that the Indian
terrain is atypical—consumers are clearly most demanding, and there is too
much focus on food," Kaul said.
LEATHER PRODUCTION
• 224.57
Data visualized by
© Statista 2018
About this statistic
Show source
Leather is one of the most widely traded products in the global market. It is a flexible and durable material
obtained from processing rawhide and skin of the various animal such as buffalo, goat, cow, sheep,
bovine, lamb, horse etc. India has the largest cattle population in the world. The leather industry in India
accounts for around 13% of the world’s leather production of skins. The growth in demand for leather is
driven by footwear industry followed by furniture & interior design industries and automotive industry. India
is world’s second largest producer of footwear and leather garments and accounts for 9.50% of the
world’s footwear production.
Tamil Nadu is the biggest leather market in India and Hong Kong is the largest leather export partner.
Rawhides, skin and leather are classified under HS Code 41. Let's take a look at the detailed analysis of
leather export from India including monthly values, leather obtained from animals, exporters, Indian states
and Indian Ports.
Leather exports from India stood at USD 823 million in 2017 and comprising of rawhide skins, finished
leather, leather goods, leather garments, leather footwear component, saddlery and harness. The country
recorded lowest sales in the month of February and recorded highest sales in September. The leather
export sale is inclined from May month after recording low sales in the first four months. Here is the table
representing the monthly values of export of leather goods from India in 2017.
Month Value (USD Million)
January 57.94
February 47.27
March 52.11
April 50.21
May 71.71
June 69.45
July 73.31
August 77.72
September 86.98
October 83.78
November 70.47
December 82.79
In India, the leather is prepared from the rawhide skin of different animals like buffalo, goat, cow, sheep
etc. Majorly, buffalo skin and goat skin are used to make leather products that exports to the other
countries. It is recorded that from total leather exports 38.75% of buffalo and 28.23% of goat rawhide
skins have used for leather. Refer the below table to check the share value of animals used in leather
exports from India.
Animal (Rawhide Skins) Share Value (%)
Buffalo 38.75
Goat 28.23
Cow 17.80
Sheep 9.54
At Export Genius, access the list of leather suppliers in India and know their trading activities including
price, volume etc. You will also get the list of leather buyers in other countries and select the right
business partner for your product.
As per Indian leather export data, the country is exporting this product from its 15 different states. These
are also the largest leather producing states in India. Tamil Nadu and Uttar Pradesh are the largest states
from where India exports leather and recorded share value of 51.98% and 37.98% respectively. In terms
of value, India exports of leather from Tamil Nadu and Uttar Pradesh stood at USD 428 million and USD
312 million respectively during the year 2017. In the given table below, check the export figures and share
value of leather exports from five biggest Indian states.
Indian State Value (USD Million) Share (%)
Maharashtra 22 2.76
China 96 11.76
Vietnam 93 11.31
Korea 43 5.24
*Above stats are based on 2017 report
The leather exports of India in 2017 is done through 21 different Indian ports including air, land and sea.
Chennai air is the biggest port departing maximum leather shipments and recorded 38.79% of the
shipments from the total exports. Chennai air is followed by JNPT, Mumbai. Indian leather exports from
JNPT worth 24.86% of the total leather exports. Refer the below table and graphical presentation which
are representing the leather export figures at five biggest Indian ports.
JNPT 24.86
CLE stands for the council for leather exports is an autonomous non-profit organization in India. It is
entrusted with the export promotion activities and the plays a major role in the development of the Leather
Industry in India. More than 3500 companies in India exporting or manufacturing leather and its products
are the members of CLE. If you are in leather export business, you can contact to council for leather
exports to become a member and expand your business in the global market.
Here is the Sample of leather export data of India including the major data fields that we cover in our
report and take a fair idea of trade report.
HS Code 41131000
Unit SQF