Accommodation and Food Services

When buyers are away from home, operators in the Accommodation and Food Service industry provide them with simple lodging accommodations as well as cook meals or provide other food services.

Within the US economy, this industry encompasses 15 separate sectors, encompassing all facets of accommodation suppliers and foodservice operators.

Despite fundamental similarities, the resulting companies have vastly different standards of operation.

The Hotels and Motels industry, for example, offers very different facilities from the Fast Food Restaurants industry, despite the fact that they all work within this market.

The current pandemic has had a significant impact on this industry and business owners thinking about exiting should read more of our articles on Business for Sale Industry Economics.

This would provide you with an idea of your entire business landscape and allow for proper assessments of your business position.

It’s always important to pay attention to these statistics when making assessments about exiting. This is where business for sale economics plays a vital part in decision making.

Over the five years to 2021, the Accommodation and Food Service industry has seen years of sales increases as the overall economy has risen, before reversing developments in 2020 as the COVID-19 (coronavirus) pandemic has triggered global shutdowns.

Companies in this industry mainly offer accommodation or food services to consumers, as well as operators that provide both lodging and food services.

Hotels and motels, casino hotels, bed and breakfasts, campgrounds and RV parks, supermarkets, coffee shops, caterers, bars and other alcoholic beverage outlets, street sellers, and other foodservice providers are also included in this industry category.

Revenue in the Accommodation and Food Services industry is expected to return to high growth over the next five years, aided by the domestic and global economic recovery.

Consumer buying, domestic and foreign tourism, and per capita disposable income are all projected to grow, bolstering recovery among operators in this field.

However, intensified competition within the sector as well as from external operators is expected to continue to limit revenue growth.

Nonetheless, the sector is projected to experience tremendous growth at the start of the forecast period as a result of pent-up demand as customers delayed non-essential travel in response to the COVID-19 (coronavirus) pandemic.

As customers resume travel and spend more at sector institutions, the sector is expected to return to pre-pandemic levels reasonably rapidly, within the first half of the forecast period.

As a result, the trends forecast that business sales will grow at a 7.9 percent annualized pace to $1.2 trillion in the five years to 2026.