Essay About Market Overview And Fast Food Market

Fast Food
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CHAPTER 1 MARKET OVERVIEW
1.1 Market Definition
The fast food market is defined as the sale of food and drinks for immediate
consumption either on the premises or in designated eating areas shared with other
foodservice operators, or for consumption elsewhere. Datamonitors definition
excludes sales through vending machines and is restricted to sales in specific
foodservice channels (please see channel definitions below).
All market values are given in Operator Buying Prices, that is the amount spent by
foodservice operators on the food and drink that they serve and not the amount the
consumers spend on food and drinks (Operator Selling Prices – OSPs) in these
channels. The difference is the mark up the foodservice operator adds in order to
cover their other costs and generate a profit. This therefore values the market in
terms of the amount of money for which food and drinks manufacturers are
competing. All currency conversions were performed using constant 2006 average
annual exchange rates.
Market volumes are classed as the total number of visits by individuals to foodservice
locations that involve the consumption of either food. Multiple purchases made during
the same visit are counted as one transaction. The purchase of drink with food in the
same location in the same visit is also considered as one transaction, not two.
The market is broken down in to four segments: Quick Service Restaurants (QSR),
Takeaways, Mobile & Street Vendors and Leisure Locations. QSRs ares defined as:
locations where the primary function is to provide full meals but where table service is
not offered. Takeaways are defined as: establishments that provide freshly prepared
food for immediate consumption and where typically 80% or more of revenues come
from consumers who take the food off the premises to consume. Mobile & street
vendors are defined as: Either individual mobile stalls or vans that offer a limited
range of freshly prepared food as well as beverages. Leisure locations are defined
as: locations serving food and drinks for immediate consumption on premises within
leisure outlets (such as Cinemas, Theatres, Racecourses etc.) that the Leisure
operator owns and operates itself.
For the purpose of this report the Americas comprises Brazil, Canada, Mexico and
the US.
Europe comprises Belgium, the Czech Republic, Denmark, France, Germany,
Hungary, Italy, Netherlands, Norway, Poland, Russia, Spain, Sweden and the UK.
Asia-Pacific comprises Australia, China, Japan, India, Singapore, South Korea and
Taiwan.
The global figure comprises the Americas, Asia-Pacific and Europe.
1.2 Research Highlights
The European fast food market generated total revenues of $19.5 billion in 2006, this
representing a compound annual growth rate (CAGR)