Restaurant Construction in the US Industry Market Research Report Now Available from IBISWorld

Lagging behind the overall economy, the industry began to rebound in 2012; continued recovery is expected over the next five years, and low interest rates will favor growth. For these reasons, industry research firm IBISWorld has added a report on the Restaurant Construction industry to its growing industry report collection.

Los Angeles, CA (PRWEB) February 06, 2013

Although overall spending on restaurant construction projects declined, the fast food restaurant segment outperformed the industry average. From 2008 to 2012, spending on fast food restaurant construction projects grew at an annualized rate of 0.4%, in stark contrast to double-digit declines for the overall industry, says Moldvay. Value-priced meals were particularly appealing to cash-strapped consumers during the recession, which resulted in an expansion in the Fast Food Restaurants industry. Furthermore, fast food restaurants have also expanded their array of healthy menu options, a trend that has been particularly appealing among consumers.

The Restaurant Construction industry has a very low level of market share concentration, with the four largest companies combined accounting for less than 4.0% of industry revenue. The vast majority of firms in the industry are small-scale, local contractors that perform fewer than five contracts per year. As such, rarely does a single general contractor earn enough revenue from restaurant construction to achieve a significant share of the market. The industry's largest firms typically operate throughout a few regional states, with the occasional project in another part of the country. However, even these firms generate a very small percentage of total industry revenue. The fundamentally fragmented nature of the industry is not expected to change during the next five years.

Over the next five years to 2018, the Restaurant Construction industry is expected to continue to gain strength. From 2013 to 2018, industry revenue is forecast to rise. The industry will primarily benefit from rising disposable income, which will enable consumers to ramp up discretionary spending on dining out. As a result, restaurants are expected to undertake expansion projects shelved during the recession and increasingly enter the industry, due to its greater growth prospects, benefiting industry revenue growth.

For more information, visit IBISWorlds Restaurant Construction in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes operators that engage in new work, additions and reconstruction projects for food service establishments. These include commercial construction projects for fast food restaurants, single-location restaurants, chain restaurants and bars with full food services.

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Restaurant Construction in the US Industry Market Research Report Now Available from IBISWorld