The restaurant business industry analysis is created for the purpose of assessing the business in terms of sales and marketing as well as internal external performances. This can be done at the beginning of establishing a new restaurant. In order to set up a new restaurant requires a lot of steps but one of the most important one is to analyze the current restaurant competition that exist. This analysis must be done in accordance with the location in which it is to be set up, the type of food that is to be served and the customers it wishes to attract.

This then will be compared to all similar restaurant businesses within the area and examine whether setting up the restaurant would be profitable or not. The restaurant business industry analysis is important and must be done before investing in setting up a new restaurant business. There can be other specifics involved during the analysis as well.

Sample Restaurant Business Industry Analysis

The following is a business industry analysis conducted for Mars Bar, Los Angeles.


Analysis by: Steven Van, YUAS Analyzers

The analysis aims to examine the impact of the restaurant within the target market and create a comparison with existing competition. This will bring about a clear picture of the performance of the restaurant in its formative years.

Analysis Summary:

  • Overall Menu Response: Mixed (45% negative)
  • Menu Price: An average of $20 (entrée/ main course/ desert)
  • Profit/Loss: 5% loss suffered in the previous quarter
  • Target Market Share: 0.8%
  • Sales: 33% productive

Mars Bar has been running in slight loss in the last quarter. This can be stabilized and brought back to profit by:

  • Renovating and recreating the Menu items
  • Decreasing the prices by 2%
  • Including family meals especially for those with children.

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