Essay on Assignment #4
Fast food restaurants represent one of the largest segments of the food industry with over 300,000 restaurants and $184 billion in sales in the U.S in 2010. The industry also seems to be recession proof. When the U.S. GDP fell from $14.297 trillion in 2008 to $14.044 trillion in 2009, fast food sales increased 4.2%. Convenience and low costs seem to be the main reasons the …show more content…
The Gym, Health and Fitness Clubs industry is in the growth stage of its life cycle due to an increased awareness and interest in fitness and health, and the need for exercise. Membership numbers are expected to grow an average of 1.1% over the ten years to 2016. In the ten years to 2016, industry revenue is expected to grow by 3.0% per year, in comparison with forecast GDP growth of 1.8% over the same period.
When the economy is down and unemployment rates are high, the gym membership is usually one of the first to go. Gym memberships, which average $35 per month, fell in 2007 for the first time in more than a decade to 41.5 million from 42.7 million in 2006, says the International Health Racquet & Sportsclub Association.
Inflation increases the operating costs of gyms. It also leads to increased rates for health benefits, insurance, utilities, property and other taxes. This causes gyms to increase their monthly membership fees, which causes them to lose more leisure customers. However, recently, gyms have still reported increased revenue per membership. The reason health clubs get away