Causes and Consequences of Fast Food Sales Growth

Abstract

Causes and Consequences of Fast Food Sales GrowthW ith today's hectic lifestyles, time-saving products are increasingly in demand.Perhaps one of the most obvious examples is fast food.The rate of growth in consumer expenditures on fast food has led most other segments of the food-away-fromhome market for much of the last two decades.Since 1982, the amount consumers spent at fast food outlets grew at an annual rate of 6.8 percent (through 1997), compared with 4.7 percent growth in table service restaurant expenditures.The proportion of away-from-home food expenditures on fast food increased from 29.3 to 34.2 percent between 1982 and 1997, while the restaurant proportion decreased from 41 to 35.7 percent (Clauson).At roughly $109.5 billion in 1997, fast food sales are approaching the amount spent at table service restaurants ($114.3 billion in 1997, including tips), despite fast food's much lower average cost per meal.Between 1990 and 1997, fast food prices rose only an average of about 2 percent per year, according to the Consumer Reports on Eating Share Trends (CREST) data, implying