USA: 40x Billion-plus Sales

 
It is very probably the world�s oldest restaurant-chain ranking. Since 1965, the American Restaurants & Institutions(R&I) trade magazine has been researching the top 400 of the US foodservice industry and their global sales. The latest list is once more a demonstration of concentrated market power. In 2006, the leaders of the pack rang upworldwide revenues of US $277 bn. This represents an increase of 6.8% (�05: +9.3%) generated by around 269,000 units � 3.9% more than 12 months previously.
 
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The ranking tells many stories, not just that McDonald�s remains omnipotent with sales revenues of almost US $57 bn and growth of 7.3% from over 31,600 units (+2.9%). In other words, the company also achieved a significant increase in the all-important parameter of samestore sales. The gap between McDonald�s and the next five world brands, KFC,Burger King, Starbucks, Subway and PizzaHut, remains enormous.
 
There are no figures on the ratio of US to international sales revenues. Nevertheless, it is evident that growth abroad is significantly stronger than in the homeland. At the same time, however, the overwhelming majority of the top 400 chains are only to be found in North America. As a direct neighbour, Canada is a halfway house. Many US concepts are tested there before being launched onto the world market.
 

 
The most important facts & figures of the latest top 400 ranking:�

• Altogether, the 400 front-runners rang up worldwide sales of US $277.2 bn in 2006, 6.8% more than in the year before. Growth has slowed; a year before the equivalent figure was plus 9.3%. The 400 largest brands were represented by 269,000 units around the world (company owned, franchised and licensed) � an increase of 3.9% over the year before.
• McDonald�s: this time, with a slightly bigger plus than the average, something that has not been a regular occurrence inrecent years. The market leader makes a fit and innovative impression with a new lifestyle mission.�
• Exactly 40 of the 400 names can point to total annual revenues of $1 bn or more. And there are lots of brands, such as Olive Garden, Reb Lobster and Panera Bread, that operate solely in the USA. Yes, more people eat away from home in North America than in the most highly developed European nations. Certain segments of the market, such as coffeebars and Asian food, are gaining ground rapidly and attracting considerable attention. However, it is the classic disciplines that are registering XXL sales revenues. Thus, the burger boys alone account for around a third of the top 400 revenues from somewhat less than a quarter of all outlets.
• There is not a single fast-food concept among the 12 fastest growingbrands, all of which are distinguished by rates in excess of 30%. All are fast casual, casualdining or bakery caf� concepts.

 

 

 
| 15 October 2007 |