Total Addressable Market: What’s My TAM
by Aaron Allen
Restaurant Consultant, Speaker & Industry Analyst
Aaron Allen & Associates
If you’ve spent any time around investors, you’ll know that many are obsessed with Total Addressable Market (TAM).
But what is it? Why does it matter? How should I be thinking about it, you may wonder.
There are a lot of angles to consider.
While we primarily address the full $14.5 trillion global foodservice industry and related ecosystems, our TAM in terms of ideal fit for our top-to-top consulting model is only around 10,000 companies worldwide. Restaurants represent less than one-third of the total width and breadth of the industry, roughly 23 million rooftops globally. When you think about it that way, you can see why we realized long ago that there are actually more “consultants” than there are restaurants (little wonder why our “competitors” have come and gone so fast in our space).
Total Addressable Market is coming up a lot more frequently these days for our tech-oriented clients and their investors who are struggling to understand the difference between the total “addressable” market and the total market “addressed” — the difference between what is possible and what is plausible.
The post Total Addressable Market: What’s My TAM first appeared on RestaurantNews.com.
