3.0 Market Analysis
3.1 Industry Analysis
The restaurant industry in the United States of America is large and diverse. According to recent forecasts, sales within the industry are projected to reach around $899 billion in 2020. – a projected increase of 2.5% over 2022. In 2024, the sales are projected to be around $705 billion. There has been significant growth in the full-service restaurant industry in the United States of America in recent years, with the output estimated to be around 72.8 billion U.S. dollars in 2021. Following the significance of the restaurant industry in the country, over 130 million individuals are expected to be food service patrons.
Overly, the restaurant industry in the U.S. includes more than 480,000 restaurants, accounting for over $400 billion in revenue combined. The industry comprises full-service restaurants as well as limited-service eateries, including nonalcoholic beverage bars, snack bars, buffets, cafeterias, and quick-service restaurants.
Demand within the US restaurant industry is influenced by personal income, consumer tastes, and demographics. With such diversity, the profitability of outlets varies significantly. For instance, high-volume sales and efficient operations are some of the key success factors among quick-service restaurants.
On the other hand, full-service restaurants depend highly on effective marketing and high-margin items to succeed. In this industry, large companies capitalize on marketing, finance, and purchasing power to beat the competition while small companies focus more on offering superior service and food.
A large part of the operating costs in this industry is the salaries and wages since the industry is highly labor-intensive. With most states in the country having set statutory minimum wage, many players are focused on ensuring all the other costs are as low as possible.
3.2 Consumer Analysis
- Target Market
Bethwell and Katrina’s choice of the restaurant’s location was highly informed by its ease of access and proximity to the shopping center.
Sundance Square hosts over 35 entertainment, residential and commercial blocks. Having earned itself a great reputation for entertainment and nightlife, adding a restaurant here will be a great choice as it capitalizes on the existing customers.
The convenient location makes it easy for individuals living around and those traveling to stop by for their favorite meals.
- Market Needs
Despite the popularity of Sundance Square, there is a need for a traditional home-made style restaurant. The area hosts several fast-food joints but lacks significant family restaurants. The only other family-style restaurants are located several miles away.
- Customer Segmentation
Dream Dishes will target a wide range of consumers including the business and residential community. The choice of the restaurant’s space contributes towards achieving this objective as it appeals to the households’ growth in downtown, Fort Worth, Texas.
Fort Worth has been ranked 5th in terms of the largest cities in Texas, and 13th largest in the whole of the US.
The following table is a summary of the targeted demographics:
| Total Population | 27,197 |
| Male | 14,024 |
| Female | 13,173 |
| Median Age | 33 |
| Households | 9,770 |
| Family households | 4,887 |
| Average household income | $77,866 |
| Median household income | $53,412 |
| People leaving above the poverty level | 17,724 |
| People leaving below the poverty level | 5,579 |
Dream Dishes will offer its products and services to the following group of customers:
- Residents: Sundance Square, where the restaurant will be located serves numerous residents
- University students: with Forth Worth having several university communities, Dream Dishes will have offerings targeting the students from these universities.