INDUSTRY FOCUS
FRANCHISING
OVERVIEW
The fast-food market in the US is a significant contributor to global revenue, projected to reach $1,140 billion by 2028, with a compound annual growth rate (CAGR) of 5.2% from 2023 to 2028. The US fast-food and quick-service restaurant industry comprises approximately 250,000 establishments, generating combined annual sales of around $255 billion. Major companies in this industry include Chipotle, McDonald's, Wendy's, and Yum Brands, all of which have a substantial presence in the US.
TRENDS & CHALLENGES
The adoption of franchise business models by popular restaurant chains and the expanding food and beverage (F&B) industry are driving factors in the fast-food market. The rise of coffee culture and the proliferation of fast-food outlets, quick-service restaurants (QSRs), and food trucks are fueling market growth.
However, the industry also faces challenges, such as meeting the growing global population's demand for sustainable, nutritious, and affordable food while reducing the environmental impact. Technological advancements, particularly in workflow automation, are essential for the industry to remain competitive and enhance overall productivity.
FUTURE FORECAST
The food industry is expected to witness increased production and consumption of healthier foods, including organic, natural, and functional foods, in response to consumer demand. Key trends in the industry will focus on clean labels, ingredient transparency, food waste reduction, environmentally friendly packaging solutions, and sustainable agricultural practices.
Technology will play a crucial role in improving efficiency and meeting consumer expectations, with advancements like automation, artificial intelligence, and data analysis applied to supply chain management, quality control, personalized nutrition, and online food delivery.
INDUSTRY PERFORMANCE
3.3X
EBITDA MULTIPLE
0.63X
SALES MULTIPLE
Disclosure: These key performance indicators are based on industry averages for a company with $10 million in revenue. The KPIs are not specific to the operational performance of your company or your sub-sector.
The information contained has been obtained from different sources deemed reliable, including DealStats, Deloitte, Dun & Bradstreet, and Business Reference Guide. Pacifica Advisors does not make any representation or warranty as to the accuracy of the data. PA is a mergers and acquisitions (M&A) advisor and business broker.