Industry Overview of the Business Plan
There are hundreds of industries are there which are working in different parts of the world, and every industry is doing an exceptional job as far as giving their shares for the economic prosperity of a country is concerned. The economic prosperity of an industry has a direct linkage with the financial power of the economy as a whole. Industries are directly proportional to the Gross Domestic Product (GDP) growth of an economy, as sounds working of the industries have a strong linkage with the astounding economic consequences and position of an economy.
The United States (US) is known as the largest economy of the world in terms of GDP, as well as Purchasing Power Parity (PPP). It is a rich country in which the per capita income related to each of the individual is extremely high. There are hundreds of companies are currently working in the region of the United States (US), which are categorizing in different industries that are creating effectiveness for the economy of the United States. Among different industries that are creating sound investment opportunities in the region of the United States (US), the name of Restaurant Industry is one of them. The restaurant business or industry is one of the fastest growing industries of the world, and it is equally important for the economy of the United States as well.
United States is a big country which has been comprises on around 50 different states. California is the most important states for the entire United States. It is found that the economy of the United States is on one hand, while the economy of the Californian region is on the other hand. This particular state is effective because of having Hollywood there, and that is the main thing why the amount of tourism is extremely in the same region. Due to the escalating amount of tourism in the state, there is large gaps of restaurants are there that induced lots of companies and international players to penetrate in the restaurant industry of the United States. Little Treasure Family Restaurant is also strategizing their best to get a specific place in the restaurant industry of the United States, which is currently on the booming stage. Restaurant Industry is one of those industries of the United States that performed exceptionally well even at the time of current global financial crisis, wherein all of the other companies went bankrupt outrageously.
Food and Drink Sales of the restaurant industry has reached on a level of US$ 659.31 billion in the United States in the year 2013. The industry worth around US$ 42.8 billion in the year 1970, which has now reached on its zenith with the current estimated statistics (Statistics and Facts on the U.S. Restaurant Industry, 2013). As an estimation, there are around 600 thousands restaurants are working in the entire United States region that employs nearly 13 million people of the country. The Industry caters to provide extravaganzas in their services that include price, food, dining experience with quality. There are certain categorizes on which the entire restaurant industry of the United States depend upon, like Chain Full Service, Independent and Limited Service Restaurant.
Full service restaurants are higher in demand in the entire United States, and especially in the region of Chicago, the heart of the Californian state. Full Service restaurant that includes major names and chains like Applebee and Red Lobster generated around US$ 207 billion in the year 2013, while the figure was around US$ 195 billion for the limited service restaurant. Some of the major Limited Service Restaurants that are working in the United States are McDonalds and Starbucks. However, McDonalds is the leading chain restaurant of the United States, generated approximately US$ 35.86 million in the year 2013 (Statistics and Facts on the U.S. Restaurant Industry, 2013). Restaurant Industry is one of those industries of the United States, where people would like to visit after a short time period, in fact there are number of people who visited the restaurants on daily basis. According to the statistics, more than 190 million consumers visited a sit-down restaurant in the financial year 2013, and at the same time over 210 million Americans visited a fast food place (Statistics and Facts on the U.S. Restaurant Industry, 2013).
As per the report published by the U.S. Food Service Industry Forecast, total amount generated through the restaurant industry of the United States (US) in the year 2014 was US$ 641.427 billion. Limited Service restaurants breached the earnings of Full Service Restaurants in the year 2014 with total revenue amounting to US$ 238.555 billion, while it was US$ 189.682 billion for the full service restaurant. A growth rate of 3.5% has been envisaged in the financial year 2014 for Limited Service restaurant while it was around 2.5% for Full Service restaurant (US Food Industry Forecast, 2014). As per the same report, the nominal growth expected in the financial year 2015 for limited and full service restaurant is 3% each (Restaurant Association, 2014).
Driven by a strong economy and highly historical level of demanding up the consumers, the industry made a record high by generating US$ 641.427 billion in the year 2014 (US Food Industry Forecast, 2014). The paddling growth of the Restaurant industry will remain the same as from the last five years that induced the shareholders and external investor to have an impulsive buying nature of the stocks of the company. The industry has still a lot of potential with a high growth rate proportion, and it will remain the second largest private sector of the United States in terms of providing employment. The industry is doing a fantastic job as far as contributing the Gross Domestic Product (GDP) of the country, and it is expecting that it will remain in the same jurisdiction for a long span of time in the future as well.
The industry still has lots of potential to welcome and absorb lots of new restaurants in their ambit, therefore the chances of economic expansion and growth for Little Treasure Family Restaurant is very bright and high. Some of the major restaurants which are working in the area of Chicago are, Harold’s Chicken Shack, Morton’s the Steakhouse, Portillo’s restaurant and many more (NPD Group, 2014). However, the amount of full service restaurant in this particular region is quite low, and it will be great time for Little Treasure Family Restaurant to enter and flourish in the restaurant industry of the United States. The company has a strong and broad mission, in which they are intending to provide every food service to every member of the family, including the toddlers. Apart from that the restaurant is also strategizing to give full respect to its every customer, because they want to get a high amount of market share in this huge industry of the United States.
Restaurant Association (2014), [Online], retrieved from < http://www.restaurant.org/News-Research/Research/Forecast-2014> Accessed on 2014-Nov-12th
Statistics and Facts on the U.S. Restaurant Industry (2013), [Online], retrieved from < http://restaurantindustrytrends.com/snapshots.html > Accessed on 2014-Nov-12th
US Food Industry Forecast, May-(2014), [Online], retrieved from < https://www.technomic.com/Resources/Industry_Facts/dynUS_Foodservice_Forcast.php > Accessed on 2014-Nov-12th