What is Restaurant Industry Analysis?

A restaurant industry analysis is a detailed breakdown of the restaurant industry with a discussion of future projected performance to allow people like investors, government agencies, and restaurateurs to make decisions about how to proceed with proposed activities. The analysis may cover restaurants in a particular region or establishments in a specific sector, like fast food or fine dining. Analysts draw upon restaurant industry experience as well as financial skills to prepare an accurate and complete assessment.

A typical analysis will cover the history of the industry, including discussions of key dates, historic growth patterns, and other matters. This sets the stage for the analysis and provides some perspective; if the document goes on to conclude that growth will slow, for example, the reader knows about historic growth rates and can compare them to the projected change in growth. An overview of the industry as it stands currently is included, along with a discussion of where the analyst thinks the industry is likely to go in the future.

The research may include analysis of several key players in the industry, including not just restaurants but also suppliers like wholesalers of restaurant supplies, produce distributors, and advertising agencies that cater to the restaurant business. The goal of a restaurant industry analysis is to provide a complete overview of industry conditions, along with a discussion of factors that might change them. Analysts can discuss pending and proposed legislation, weather conditions that might lead to food shortages, and changing social trends, such as a decline in dining out.

There are a number of reasons to commission a restaurant industry analysis. People who want to invest in the industry can request such documents so they know how and where to apply their funds for the best gain, such as buying in on a rapidly expanding sector of the industry. Government agencies and policymakers may request a restaurant industry analysis to help them make policy decisions about everything from allocating tourism promotion funds to changing the health codes to increase consumer safety.

Members of the public may be able to access a restaurant industry analysis through a trade journal or organization that publicizes its research and evaluation of various industries. For people thinking about opening restaurants, this can be a useful starting point for research to help them decide what kind of restaurant to open and where. The analysis can also provide information about pricing, industry wages, and other important topics.