Environmental Analysis- The Fast-Casual Dining Industry
The Fast-Casual Dining Industry is one of the most important industries that people are investing their time and money in. This industry has grown in the past couple years due to the need of the society. According to Technnomic, “The industry was worth $47 billion in 2016, and although it should close 2017, with a 10 percent increase, hitting $52 billion, that's a drop in growth from past years. The good news, however, is that the industry is still leading the restaurant sector when it comes to growth.” There are many different factors that effect to the Fast-Casual Dining Industry. However, in this paper, I want to focus on Sociocultural, Technological and Economic that affect the
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Whoever understands the customer’s needs and catch them up on time, that company will be successful. With more knowledge about being healthy, people have the higher demand for having good quality food in a quick service. As Levey’s article, “in the casual dining industry, Brinker International announced a new menu at its Chili’s unit that includes significant low-fat and low carbohydrate options.” The restaurants might have a valid option about the level of low carbohydrate or low fat for their clients to choose from, so this industry can be efficient and brighter. There are three key survival factors for the Fast- casual dining industry, including customers, employee productivities, and food qualification. Nowadays, the customers in this industry have high expectation for what they eat. If the restaurants pay more attention to the purchasing high quality of ingredients in order to make a good food, they would attract more customers. In addition, if they give their employee good benefits, that will keep their employees work more efficient and productive. If the restaurants in this industry know how to balance out everything, they probably make a good amount of …show more content…
Fast-causal dining industry is one of the most important in U.S, which we have many suppliers who supply fresh ingredients and others supply. It is hard for those suppliers to have the advantage of rising up their prices for ingredients and supply equipment. The restaurants will go to other suppliers to purchase their ingredients with the same quality but lower prices. The Power of Supply is weak since they have to compete with each other to maintain their buyers. The demand is high as always, but the bad quality of ingredients and high sale prices, their suppliers will be bankrupt
In today’s world even with the economy suffering and individual income declining, the food industry is still up and running. Chain restaurants, mom and pop establishments, and fast food restaurants that are learning to market their products cheaper and more reasonable to the consumer are still going strong in the United States. They are offering healthier meals due to the consumer wanting to become healthier. They have their ups and downs like any business but are learning to give the consumer what they need and desire. That is the way restaurants keep their customer happy, by buying products from company like Sysco, Gordon’s Food Service, (GFS), and other restaurant suppliers. However; Sysco is the number one supplier to restaurants and hospitals, making them the most profitable company in the world (Sysco.com, 2011).
Fast food restaurant chains are a popular and convenient choice for eating on the go in our modern society. There are certainly several positive aspects to fast food establishments, but are the potential health detriments and collective negative effects on society worth it? Or would it be better to support locally owned and operated restaurants? Here I will examine several facts pertaining to these restaurants, as well as explain why I personally believe we should not frequent these establishments, but rather support local restaurants.
Value meals vs. Regular menu We are all a part of highly evolved society where food is now apart of everything. Food & restaurants are involved in everything in our lives in any case. It is all about the problems with scarcity and the way we allocate the resources and the way we utilize things in order to optimize the returns. The aim is profit maximization and cost minimization. The customer is probably the most complicated piece of the puzzle in the world of restaurants and fast foods. They want preferential treatment and when they do not get the human element in the deal they simply walk out. But the reaction of the customer depends on the type and the nature of the product itself. As times are changing, people are work day and night to earn a decent living, and when they spent money they want the objects bought worth the cost. Value meal from a consumer’s perspective is very important, the reason being he is spending little money for a lot of stuff. It is human nature to be greedy, and if person is getting a Value meal that has several items in it for just $5 then why in the world would he ever want to spend $5 on a regular menu that just serves burgers and fries. Although this may sound as a joke but if America built lots of McDonalds and Burger Kings in enemy territories it would eradicate the need for atomic bombs, the reason; the obese population would soon self destruct. However the only problem is that America itself is becoming her own enemy with obesity reaching epidemic proportions. According to a recent observation, more and more Americans are becoming super sized with around 60% of them are adults, 14% of them are teens while the rest 13% are 6- to 11-year olds. This obesity that is growing is the real reason why...
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers. With each generation that passes, brings fast food chains into more homes and continues impacting lives.
American pay more in fast food than one does on entrainment like movies, books, and music combined. In 1970, The United States spend around $6 billion on fast food and by the end of 2011 the amount was nearly doubled to $110 billion. Fast food is now found all over the places like hospitals, airports, and zoos. “What We Eat”, wrote by Eric Schlosser reflects on his research on the far-reaching effects of the American life. “What We Eat,” is a look into the rapid increase and popularity in fast food for the American people along with the physical and social consequence of the rapidly growth of the service economy.
Now, some will argue that it is not the fast food chain’s problem, that it is the customers’ problem for buying their food. But here is why they are wrong. Fast food restaurants have not made any positive changes, at least healthier ones and many people depend on something quick to go back to what they were doing, but they do not have the choice of getting something healthy because fast food restaurants do not have any healthy options. This makes the public think twice and actually end up picking something unhealthy because they do not have any other options to choose from. Moreover, fast food has also been proven to lead to heart diseases. This is due to the high cholesterol that fast food contains in their meals. By consuming a lot of cholesterol, plaque will start to build up in the walls of the arteries, which can narrow the blood flow in the coronary arteries and cause a heart attack if blood supply is completely cut off. Secondly, fast food is also the leading cause of obesity, which has become a natural problem in the fast food era. The reason why fast food leads to obesity is because their meals are high on fat and carbohydrates which add on a lot of calories. Obesity has also been linked to leading to other health problems like heart disease, diabetes, problems breathing and other serious health problems. Furthermore, fast food chains are also a critical problem because they are causing other serious health problems by adding other ingredients and additives to their food. Fast food chains are known for adding extra ingredients like sodium or an additive like trans-fat to make their food taste better. By increasing sodium intake, the individual could experience high blood pressure (hypertension), which can lead to heart attack, stroke and other health threatening diseases. On
.... Fast food industry should promote their healthy choices in their unhealthy, fatty food products by giving consumers the choice to add a variety of veggies and vitamins. They should add nutrition information regarding the products this way they can protect themselves and their customers.
Customers buy when they feel it is necessary giving them the upper hand on the industry. Bargaining power of suppliers: In the quick- service restaurant, the suppliers vary. They really do not rely distributors as large restaurants do. Threat of new substitutes: The restaurant industry is segmented into many parts: full service restaurants ($120 billion); quick- service restaurants ($110 billion); away-from-home managed institutions, examples: food services for schools and hospitals ($21 billion); and other food industries ($106 billion). (Marshall Jones, 1999). Rivalry among competi...
Fast food outlets actually have been existed from millennia in China, India and ancient Europe. In the past, many people cannot afford to have a kitchen and this becomes the main reason they buy their food in fast food outlets (Reverse Your Age, 2013). The perception of fast food started to change in twentieth century. The first company that change the culture and perception of fast food was McDonald’s, followed by their future competitors such as KFC, Burger King, Wendy’s, Taco Bell, Pizza Hut and Subway. As they get a good appreciation from the customers followed by the impact of the globalisation, almost all of the fast food companies have been expanded their restaurant chain in many nations (Wojtek, 2013). Nowadays, with our busy life schedule and the increasing trend where women entering workforce promote an opportunity for the fast food industry to grow bigger. We can see the significant growth from the fast food industry as the industry itself has been generated over $160 billion in 2012 compared to their revenue in 1970 which only around $6 billion (Franchise Help, n.d.). With this significant growth, it does not mean that every company in this industry are successful. Some company has to closed some of their stores due to the lack of environmental research and preparation in entering a new country which commonly lead to the poor selling rate. The deeper explanation and points that is mention below will be also represent as the industry current state.
This proposal is aimed at conducting a research on the market potential for Fast Food Restaurants Services in India. It will be mainly focusing towards understanding the importance of various factors affecting the choice and the need of fast food outlets by Indian young consumers. Also, it aims to study the consumption pattern towards fast foods particularly with respect to the frequency of visits and choice of fast food outlets. It aims to study the impact of hygiene and nutritional value of fast foods on consumer purchase decisions. These services may provide an opportunity to develop a niche market. This proposal aims to study the feasibility and practicality of implementing this idea.
A fast food restaurant will have to have a good pricing strategy in order to ensure that competition does not push the firm out of business. This will ensure the restaurant remains competitive. For effective management of cash inflows, the management will require to create an environment whereby each item has been priced conspicuously and reflecting the cost of bringing the same to the table as well as the profit margins targeted by the restaurant (Mark 1998).
Consumption habits are very important factors for international marketing strategy for fast food chains. Culture is also involved in here again, though these days’ customers are always looking forward to something new in the service and products. Then again, taste of customers is changing as they are transforming towards dining in if the image of fast food is not healthy. Health conscious customer are quick to abandon fast food, they find the fast food very harmful for lungs, heart and blood conditions.
As Americans, we’re always on the go. When hungry and have no time there are many fast and healthy items available. Many people who say that fast food chains is the main cause of obesity in America because there are plenty of fast food restaurants on every block with very few healthy options ("Do Fast Food Restaurants Contribute to Obesity?"). Fast food business are very easy to find and offer quick service, but there are other options that are healthy, especially in urban areas. Restaurants such as Panera offer a range of items that are healthy and offer a quick service for those on a schedule. In addition to these healthier options, it is also possible to pack their own snack or meal. People often become lazy when it comes to just cooking their meals at home. This choice allows the customer, to control what they eat.
The market is divided on the basis of several variables such as sex, occupation, age, marital status, social status, education, family size etc. These variables highly influence customers buying behavior and moreover these elements can be measured quantitatively. For example the restaurant can target individuals who are not married and with low income, this is dependent on the rate of services offered. Therefore, considering demographic factors while designing marketing plan is crucial.
In America, many are not aware of the inequalities that exist in the Food Service. The food service sector has at least 125,951 companies and approximately 12 million employees with almost 7 million foreigners. This sector includes individually owned restaurants, mid-priced chains, quick service (fast food), hotels, and beverage establishments. Food service plays a major role in institutional establishments like schools, hospitals, prisons and meals on wheels. They cater to the tastes of their particular customers and are often leaders of food innovation. In the food service, we find: bartenders, wait staff, hosts, busboys, chefs, cooks, managers, and dishwashers .The food service workers perform a variety of customer service, food preparation and cleaning tasks, all that which are very important to keep a business running. More concerning , some of the major working conditions that foodservice workers face with daily is no health benefits and significantly low wages. These employees working in the food industry make it possible for millions of people to enjoy food in restaurants but are not being treated or appreciated fairly.