Accommodation & Food Services

Performance Highlights

The COVID-19 pandemic significantly disrupted the industry, affecting indoor operations and reducing customers' purchasing power. Customer preferences are shifting toward healthy and vegetarian food options, which will require food service providers to adapt their menus accordingly.

Geographic Distribution

The highest concentration of establishments is in regions with large cities and tourist attractions, such as California, Texas, New York, and Florida.

Industry Outlook

Revenue is expected to grow at a CAGR of 3.2% from 2023 to 2028, reaching $1.6 trillion. The industry will continue to leverage technological advancements and adapt to changing consumer preferences to drive growth.

Competitive Forces

The industry is characterized by low concentration and high competition. Barriers to entry are generally low, leading to a highly fragmented market. Price competition is high, with establishments needing to differentiate themselves through unique services and niche markets.

Major Companies

Notable players include Starbucks Corporation, Darden Restaurants Inc., McDonald's Corporation, Yum! Brands, Inc., Hilton Worldwide Holdings Inc., and Marriott International Inc. These companies have varying degrees of market share and profit margins, with Starbucks leading in market share at 1.9%.

Revenue

$1.3 trillion

Employees

14 million

Businesses

1 million

Wages

$367.2 billion

Economic and External Factors

Increasing inflation rates might deter customers from visiting sector establishments due to reduced disposable income. The sector is governed by a wide range of regulations focusing on labor, health, and safety concerns.