FAST AND FURIOUS

Delivery, takeaway and tech innovations lead the way in the

ever-competitive fast food arena.

current year. These trends are expected to lead to a sharp downturn in demand for industry services.

“Consequently, industry revenue is forecast to decline by an estimated 16.1% in the current year.”

The good news is a revenue recovery is forecast over the next five years.

“Greater convenience and improved nutritional content of industry products are projected to drive this growth. Overall, industry revenue is forecast to rise at an annualised 3.1% over the five years through 2024-25, to an estimated $19.7 billion,” Caldwell writes.

While delivery plays a crucial role in hospitality - and proving a lifeline for businesses during lockdown - Caldwell believes there’s a downside; significant third party delivery commissions rein in the profit potential for fast food operators.

“Despite anticipated growth in industry revenue over the period, the industry's increasing reliance on online delivery platforms is projected to limit industry profitability growth,” he suggests.

Another constraint will be the increasing demanding for premium, healthy dining options which will challenge traditional fast food operators.

There will be more competition from cafes and restaurants, and supermarkets, who are seeing opportunities to offer healthy meal options in the convenience space previously occupied by takeaway chains.

One addition to the scene is the mobile food van, and these takeaway trucks are a growing trend, with convenience, flexibility and low cost operations particularly appealing to both franchisors and franchisees.

INNOVATION AND ACCELERATION

Burger chain The Famished Wolf, pizza franchise Bubba’s Pizza, Vietnamese chain Roll’d and global ice-cream brand BaskinRobbins share with Inside Franchise Business how innovation, delivery and Covid-19 have shaped business in 2020.