Restaurant business still has a chance to grow amidst economic fluctuation. EIC estimates a 4-5% business expansion in 2019-2020 as a result of changing population structure: smaller household, urban expansion and changing consumer lifestyle.
Moreover, increasing tourists also help boost restaurant growth. However, business competition tends to get more aggressive, especially the expansion of chain restaurants, whereas more new players step into the battle.
We have to keep our eye on Asian restaurants, especially the Japanese ones, and cafés like coffee shop because the competition tends to get violent.
The entrepreneurs have to adapt to key trends that will shape restaurant industry, such as popularity in fast casual restaurant, giving an importance to Foodie influencers and food searching platforms, as well as popularity in delivery channels.
Despite its constant growth, a great number of entrepreneurs cannot succeed and go out of business. So before stepping in, it is needed to be careful in choosing a proper location, to focus on quality and service, and to make a difference.
More importantly, cost management and building relationship with customers are the key to survive your business in the long run.
Restaurant business overview and its competition
Restaurant business tends to be constantly growing as a result of structural change like smaller household and changing consumer lifestyle.
Though the deflation in the consumption from household income hasn’t been much recovered in the last few years and the farm income is low-level, according to Euromonitor, it shows that food service1 business revenue in…