Despite weak growth, Fast Food outlook is positive
According to a new report by IBISWorld, the fast-food services industry has suffered from weak growth.
The main reason the firm pointed is the increasing consumer preferences for healthier food and volatility in consumer sentiment. But despite weak growth, IBISWorld is expecting further growth within the industry. "The challenge for industry players is adapting existing strategies to cater for the health-conscious and tech-savvy consumer," the firm emphasized.
In the same report, the firm also shared that among the Top 1000 Companies list from IBISWorld, Domino’s Pizza Enterprises Limited (615) continue to be one of the standouts among the retailers.
"The company has climbed 380 ranks, following 98.5% revenue growth for the year and a 47.6% jump in net profit. This revenue increase can be attributed to store growth, internal initiatives and strong investment in online platforms and applications, which has appealed to the industry’s core demographic of younger consumers," the report noted.
"In contrast, McDonald’s Australia Holdings Limited (248), Quick Service Restaurant Group Pty Ltd (500) – operator of the Red Rooster, Chicken Treat and Oporto brands – and Competitive Foods Australia Pty Ltd (399) – operating through its Hungry Jacks franchise brand – have all conceded ground in the Top 1000 list. McDonald’s reported modest revenue growth of 1.6% for the year, while the others suffered small declines."
