| SIC Codes: | 5812 |
| NAICS Codes: | 722513 |
The US fast-food and quick-service restaurant industry includes more than 200,000 restaurant locations with combined annual revenue of about $190 billion. Major companies include Burger King, Chick-fil-A, McDonald's, Wendy's, and YUM! Brands. The industry is highly fragmented: the 50 largest companies account for about 20 percent of the market.
Demand is driven by demographics, consumer tastes, and personal income. The profitability of individual companies depends on efficient operations and high volume sales. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by offering superior food or service. The industry is labor-intensive: average annual revenue per worker for a typical fast-food company is about $55,000.
Products include simple, average quality food, which is typically packaged "to-go" for consumption off-premise. Companies may specialize in certain types of cuisine or entrée item. Hamburger restaurants represent about 45 percent of industry revenue, while pizza parlors account for about 15 percent of the industry. Other restaurants serve chicken items, Mexican food, and submarine-style sandwiches.