ipant in the fast-food segment, Rubio’s must
monitor its competition and face these chal-
lenges in order to remain successful in this
competitive environment.
Regional Trends
Western Region. Although total em-
ployment, disposable personal income, and
population growth was higher than the na-
tional average in 2000, the region’s economy
is predicted to slow simultaneously with the
nation’s economy. However, at the state level,
California is expected to continue leading the
nation in total sales volume and total
employment in the restaurant industry. Un-
fortunately, California is quickly becoming
saturated by full-service and quick-service
restaurants, and other states may provide
more opportunities to new businesses.
Mountain RegionThe mountain region
achieved the strongest national growth in
total employment and total population in
2000, as well as a higher than average growth
in disposable personal income. At the state
level, Nevada and Colorado are expected to
lead not only the region but also the nation
in eating-place sales growth in the future.
Central Region.In the midwestern and
central regions, the economy, total employ-
ment, disposable personal income, and popu-
lation growth increased at a rate well below
the national average. Furthermore, the re-
gion is expected to continue with these
trends, posting the lowest restaurant industry
sales growth in the nation.
Eastern Region.Economic growth in the
mid-Atlantic and New England regions of
the eastern part of the nation slowed in 2000,
while the South Atlantic region posted eco-
nomic growth well above the national aver-
age. In fact, at a regional level, the South
Atlantic is expected to lead the nation in
restaurant sales in the future. New England’s
eating-place sales are expected to increase at
the national rate, with New Hampshire and
Rhode Island leading the way for the region.
Major Market Trends
Education. Food and drink sales by contract
food-service providers at educational institu-
tions are expected to increase in the future as
a consequence of the continued increase in
academic enrollment. The higher education
sector of the educational market is expected
to increase at the fastest rate.Recreation.Food and drink sales at recre-
ation and sports centers are projected to
increase at a higher rate than sales in the edu-
cational sector due to increased event atten-
dance and the growth in the number of high-
er-income households. For example, atten-
dance at spectator sports such as ice hockey
and baseball is increasing, and attendance at
theme parks is up as a result of new and
improved attractions and repeat visitors.Transportation.The transportation market
is expected to experience the highest increase
in food and drink sales. Railroad depots are
projected to post the largest sales increase
due to increased passenger traffic, especially
for short trips. Airports provide another
venue where substantial numbers of travelers
seek preflight and between-flight meals.Lodging Places.Although food and drink
sales at lodging places are expected to grow,
the increase is expected to be less than in
other markets due to the slower growth in
personal and business travel. This will be
most evident in the hotel-restaurant segment.Business Places. Sales by contract food-
service providers are predicted to increase
slightly at commercial and office buildings.
The growth rate is equivalent to the expected
employment growth in areas such as finance,
insurance, real estate, and government.Economic Trends
Sales at quick-service restaurants are expected
to reach $112 billion in 2001, which is a 4.4
percent increase over the segment’s 2000
sales of $107 billion. When adjusted forRubio’s: Home of the Fish Taco (B) 457