Meat Industry INSIGHTS Newsletter

980732 Fastfood Lose Market Share to Supermarkets and Restaurants

July 18, 1998

Portland, ME - Despite their long-reigning presence as the kings of takeout food, fastfood restaurants can expect to lose about 4 points of market share in the takeout segment during the next 10 years -- losing ground to supermarkets and fullservice restaurants. That's the quick-and-simple conclusion of Takeout Business magazine's July 15 cover story, “Fastfood hangover: Quickservice restaurants aren't reaching for the aspirin yet -- but they will be.”

The story by associate editor Einar Torbjornsen was based on research conducted for Takeout Business by Chicago foodservice-consulting firm Technomic Inc. According to the study, the takeout market is expected to grow by 55% in the next 10 years -- from $126.4 billion last year to $195.4 billion in 2007. But the fastfood segment, which is expected to claim $112.6 billion of the total (up from $77.4 billion in 1997), is actually losing market share in the process.

The study shows that fastfood's market share of 61.2% last year will drop to 57.6% by 2007, a loss of almost 4 market-share points. Supermarkets, on the other hand, will gain over 3 points -- almost doubling 1997 takeout sales of $14.8 billion to $29.1 billion in 2007. Takeout sales for fullservice operators will increase from $14.4 billion to $25.8 billion, up about two points in share.

In a sidebar to the cover story, “Why have chicken chains flown the coop,” Takeout Business examines the riches-to-rags lifecycles of Boston Chicken, Harvest Restaurant Group, Kenny Rogers Roasters and Koo Koo Roo California Kitchen.

This Article Compliments of...

Press Here for FREE Subscription

Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
Return to Home Page