In the market there are no many restaurants. Burger fast food restaurants have 40% of the market, snack/sandwich shops have 30% of the market share, pizza 20% and souvlaki only 10% of the total market share. Souvlaki fast food restaurants are still resilient to the crisis though burger fast foods have reduced their 18,6% their revenues compared to the previous year. Though the revenues for food industry is 1,8 billion euros. According to Stochasis sector analysis (2012) the fast foods revenues are 481.5 million euros (with a percentage change of 11,4% for the years 2012-13).
At Lykavittos Hill is the “Lykabettus” restaurant (Nesacenter, 2012). Also Brasserie Valaoritou, a stylish yet casual café/restaurant offering tasty Greek and international cuisine. At Kolonaki is Oikeio, a small, charming restaurant with reasonably priced gourmet Greek food. Other restaurants near Syntagma square (at Plaka) are Byzantino a Greek restaurant with authentic and fairly-priced Greek food. Apart from economic factors there are regulatory factors that make both entry and exit difficult. These barriers deter new entrants from entering the industry.
The 7 major sources of barriers to entry that incumbents have relative to new entrants are supply side economies of scale, demand side benefits of scale, customer switching costs, capital requirements, incumbency advantages independent of size, unequal access to distribution channels, restrictive …show more content… Strong established players exist in the market, not necessarily serving healthy food, such as off of Stadiou St., near Syntagma, is a sophisticated, slightly upscale restaurant called Pasaji, serving ‘modern’ Greek food. Threat of new entrants: The threat of new entrants in the industry is low which is mainly because of the high entry and exit barriers. Graph 3 1: Porter’s 5 Forces Threat of New Entrants and Entry Barriers: Across different industries the levels of profitability differ. industry hinge on five force: the threat of new entrants, the bargaining. If the intensity of competition is high then profitability is drawn down. in the service economies of the US Especially the restaurant industry takes. Porter’s 5 forces determine the competitive intensity of an Industry and the industry’s profitability. Porter five forces analysis is a tool which is used to analyze level of competition within an industry and its strategic management.
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