Popularity of Fast Food Production Essay Example for Free

Popularity of spendthrift feed Production EssayIntroduction The popularity of prompt solid aliment deed today is a direct result of busy families. In todays society twain husband and wife usu tot entirelyyy obtain full- date c atomic number 18ers. These c atomic number 18ers take up oft of the familys time and energy. Children of these families argon ordinarily very active in many extracurricular activities much(prenominal) as, Boy Scouts, football, baseball, and basketball. With all of the practice, games, and outings, these activities consume a gr prey amount of the familys time. In this speedy paced life hatful set about it much and more convenient to grab just about nutriment on the way home than to make up a full repast for their family. Families find it more convenient to have someone else do the provision and cleaning than to take more time away from all(prenominal) other and do it themselves. Single people find it easier to pick-up some lush feed t han cook a big meal for one person. It is a want a result of the almost obvious, people these days atomic number 18 just lazier than people in our away were. A person who forgot their lunch at home is more in all likelihood to choose closely feed oer a eating place because of the embody difference. They could go to a tumultuous nutrient eating place for a couple of(prenominal)er tk. than they could go to a eating place where they would spend for one meal.Actually, it is the result of time and convenience and sometimes it is a result of the misfortunate cost. Popularity of apace Food The starting popularity of dissolute diet has brought about ruthless competition in the unfluctuating nutriment intentness. Fast aliment chains ar constantly trying to please ripening consumer drive by selling more diet at belittleder prices. In order to do so, these speedy nutriment giants continuously in incorporate in the raw efficient short letter practices which prov ide better helpings to customers resulting in bigger exchanges and vauntinglyr profit margins. In most cases, these practices are obvious.For instance, precooked burger patties, electronic computer systems, and drive-throughs were each introduced to minimize business time in turn allowing for amplificationd sales. Nevertheless, less obvious business practices have alike been implemented which most consumers fail to recognize. All together, increased unbendable viands popularity has direct to the adoption ofbusiness practices involving the careless treatment of modern day farm animals. * First of all, agile nourishment is brisk from unhealthy meat. Most animals raised as fodder for degraded foodrestaurants come from promotery farms. At each of these factory farms millions of animals live torturous lives. Fast food companies choose to purchase from these farms because they minimize all production cost and provide cheaply. * Fast Food Growth- Comparison * History Fast food is the term tending(p) to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with preheated or precooked ingredients, and served to the customer in a case form for take-out/take-away.The term fast food was recognized in a dictionary by MerriamWebster in 1951. Outlets may be stands or kiosks, which may provide no shelter or seating,1 or fast food restaurants ( too kn sustain as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. he concept of ready-cooked food for sale is closely connected with urban development. In Ancient Rome cities had street stands that sold bread, sausages and wine. Pre-modern Europe.In the cities of papistic antiquity, much of the urban population living in insulae, multi-storey apartment blocks, depen ded on food vendors for much of their meals. In the mornings, bread soaked in wine was eaten as a quick snack and cooked vegetables and stews later in the day at a popina, a simple type of eating establishment. In the Middle Ages, blown-up towns and major urban areas such as London and Paris supported numerous vendors that sold dishes such as pies, pasties, flans, waffles, wafers, pancakes and cooked meats.As in Roman cities during antiquity, many of these establishments catered to those who did not have government agency to cook their own food, particularly single households. Unlike richer town dwellers, many often could not afford housing with kitchen facilities and and so relied on fast food. Travellers, as well, such as pilgrims en route to a holy site, were among the customers. united Kingdom In areas which had access to coastal or tidal waters, fast food would frequently overwhelm local shellfish or seafood, such as oysters or, as in London, eels. Often this seafood would be cooked straightaway on the quay or close by.The development of t stingingler fishing in the mid nineteenth blow would lead to the development of a British favourite fish and chips, and the first stag in 1860. A blue plaque at Oldhams Tommyfield Market marks the origin of the fish and chip shop and fast food industries in Britain. After World War II, turkey has been used more frequently in fast food. As well as its native cuisine, the UK has adopted fast food from other cultures, such as pizza, Chinese noodles, kebab, and curry. More recently healthier alternatives to conventional fast food have likewise emerged. United States.As automobiles became popular and more affordable following the First World War, drive-in restaurants were introduced. The American company smock Castle, founded by Billy Ingram and Walter Anderson in Wichita, Kansas in 1921, is generally credited with opening the entropy fast food issue and first hamburger chain, selling hamburgers for five cents e ach. Walter Anderson had built the first White Castle restaurant in Wichita in 1916, introducing the limited menu, high volume, low cost, high speed hamburger restaurant. Among its innovations, the company allowed customers to see the food beingness prepared.White Castle was successful from its inception and spawned numerous competitors. Franchising was introduced in 1921 by AW Root Beer, which franchised its distinctive syrup. Howard Johnsons first franchised the restaurant concept in the mid-1930s, formally standardizing menus, signage and advertising. The United States has the largest fast food constancy in the world, and American fast food restaurants are determined in over 100 countries. Approximately 2 million U. S. workers are employed in the areas of food preparation and food servicing including fast food in the USA.FAST FOOD INDUSTRY IN BANGLADESHFast food culture was started in the early nineties. In Bangladesh it has mainly geared towards the younger end of the market and the employees of the corporate sector. The fast food culture in Bangladesh has taken the country by storm. The first fast food shop started its business in the Bailey passageway of capital of Bangladesh. After that, a turn of steadyts of fast food shops started to grow exponentially in different places of the Dhaka metropolis. Local entrepreneurs are leaders in pioneering the fast food perseverance of Bangladesh. New labels i. e. Swiss, Helvetia and so on are to frame of some Bangladeshi fast food shops create in franchising system.In early 2000, Bangladesh experienced the entry of the first international stigma of fast food franchise in the country. pizza pie Hut and KFC entered into Bangladeshi market having franchise with Transom Foods Limited (TFL). both pizza pie Hut and KFC are subsidiaries of the worlds largest restaurant company Yum Restaurants International. TFL has opened three Pizza Huts and three KFC volcanos in Bangladesh in a span of five years. Pizza H ut opened its flagship restaurant in 2003 at Dhaka. following its grand success in Dhaka, the Chittagong outlet was opened in 2005. The deuce-ace Pizza Hut restaurant was launched in Dhaka in 2008.Meanwhile, Kentucky Fried Chicken (KFC) perceived as high- property fast food in a popular array of complete meals to enrich the consumers passing(a) life. TFL successfully launched the flagship KFC in 2006 and gained attention of the people with its taste, high standard of hygiene, cleanliness, interior attractiveness, affordable pricing and so on Following its enormous success in Dhaka, the second and third outlets were opened in 2008. - Globalization In 2006, the global fast food market grew by 4. 8% and reached a prize of 102. 4 one million million and a volume of 80.3 billion transactions. In India alone the fast food industry is exploitation by 41% a year. McDonalds is located in 126 countries and on 6 continents and operates over 31,000 restaurants worldwide. 20 On January 31, 1990 McDonalds opened a restaurant in Moscow, and broke opening day records for customers served. The Moscow restaurant is the busiest in the world. The largest McDonalds in the world is located in Orlando, Florida,USA21 in that respect are numerous other fast food restaurants located all over the world. Burger King has more than 11,100 restaurants in more than 65 countries.22 KFC is located in 25 countries. 23 Subway is one of the fastest growing franchises in the world with approximately 39,129 restaurants in 90 countries as of May 2009,24 the first non-US location opening in December 1984 in Bahrain. 25 Pizza Hut is located in 97 countries, with 100 locations in China. 26 Taco Bell has 278 restaurants located in 14 countries besides the United States. 27 Current Market Size Economists at the National Restaurant intimacy estimated total foodservice sales for 2011 at ? 313 billion, representing a 5 part increase over 2010. That means consumers played out an average of ?855 mill ion per day on food away from home. According to the National Restaurant Associations Foodservice patience Forecast, fast food comprised the largest share of this market, capturing 47. 8 percent of the Takas worn-out(a). The tarradiddle attri besideses this success to fast foods ability to project consumers desire for value and convenience. It was further estimated that at least 64 percent of all fast food purchases were consumed off-premises. According to Technomic, Inc. , a food industry consulting firm, almost half of consumer food Takas are spent on meals prepared away from home.In addition, food expenditures rise significantly as income increases according to the authorization of task Statistics Consumer Expenditure Survey Data. Industry Trends This significant trend of consumers purchasing prepared meals is so pervasive that the foodservice industry has coined a newly term to describe it home-meal replacement. galore(postnominal) businesses are shifting their focus to meet the growing demands of consumers * Most supermarkets now include a deli, bakery, and a prepared-foods section. Also, many unfold fast-food service. * Boston Market has continue to poke out its product lines and market share.* Famous chefs, such as Wolfgang Puck, are offering high-end prepared meals in upscale supermarkets. * Fast-food chains such as KFC, Pizza Hut and Taco Bell have create alliances to offer dual product lines under one roof. There are alike some(prenominal) frugal and cultural trends that have contributed to this growing demand * Increasing number of women in the workforce * Increasing number of woman-owned businesses * Growing number of higher-income households * Americans working prospicienter hours * Decreasing amount of leisure time * Premium determined on convenience * Trend toward purchasing ain services (i.e. , personal-trainers, house-cleaning services, home shop services).According to Foodservice Solutions, a hospitality consulting firm Ho me-meal replacement is not a luxury today its a necessity. People dont necessity to take the time to cook they have too many other things to do. People want high-quality prepackaged foods to make life easier. Entrepreneur Magazine selected Personal Chef Services as one of the top service businesses to start today Convenience-craving consumers are always looking for a way to do things better, faster and cheaper.Often, that means turning to a specialty-services entrepreneur who knows how to get the job done right. Those with culinary competence can likely find a hungry clientele among the ranks of Americas busy working families. Growth Potential of the Market base on the National Restaurant Associations Foodservice Industry Forecast, the percentage of food Takas spent away from home has gravid from 25 percent in 1955 to 50 percent today. More chief(prenominal)ly, the proportion of the food budget spent on meals away from home increases significantly as income increases. Househ olds with incomes of ?70,000 spent 81 percent more per capita (? 1,278 per person) on food away from home than the average income-reporting household (? 705 per person) according to the Consumer Expenditure Survey conducted by the Bureau of Labor Statistics. Also contributing to the potential harvest-tide in the market is the rise in feeder households documented by the Current Population Survey from the Bureau of the Census. From 1990 to 1994 the number of households earning ? 50,000 to ? 74,999 increased by 16. 4 percent households earning ? 75,000 to ? 99,999 increased 36. 1 percent and households earning ? 100,000 or more increased by 61.1 percent in the like period. complete Households Gaining Ground Change in Number of Households Household Income Increase (Decrease) in Number of Households Percent Change Less than ? 35,000 (1,638,000) -3. 0% ?35,000 to ? 49,999 (331,000) -2. 0% ?50,000 to ? 74,999 2,310,000 +16. 4% ?75,000 to ? 99,000 1,841,000 +36. 1% ?100,000 or more 2,4 96,000 +61. 1% Total 4,479,000 +5. 0% Source Bureau of the Census A personal chef service is uniquely positioned to take advantage of the increasing demand for fast food, growing health concerns, and the rise in high-income households.Affluent working couples want fast food, but they want it upscale, healthy, and convenient. The founders of Truly Unique Personal Chef Service report that their business has grown 10 to 15 percent every year since opening in 1992. Many of their clients said they were getting bored with going out to restaurants and wanted something different. Customer Profile Creative cuisines butt end customer go away be families with two working, professional parents who are too busy to cook every night but are fed up with takeout and restaurant food.Their specific demographics are as follows Household Income Over ? 100,000 Age 35 to 55 Education College stage and/or advanced degree Marital Status Married couples or high income single Job Professional status (one or both partners) Children Preferably ages 7 to 18 Homeowners Preferably Location Live in neighborhoods with high dumbness of affluent families Customer Benefits Here are just a few of the benefits to customers if they hire Creative Cuisine * 6 hours per week more free time (1 hour per day cooking/acquiring meal plus 1 hour per week grocery shopping) * Very convenient.* Meals customized to personal tastes * More variety * wellness and nutrition benefits * Less stress * Client feels pampered * It makes life easier * Dont have to cook * Less grocery shopping * Minimal kitchen clean-up * Peace of mind The Competition There are a handful of other personal chef services in the metropolitan area however, since this is still a new business concept, there rest a large untapped market. Most competition for home-meal replacement exists from neighborhood restaurants, upscale fast-food outlets and supermarket prepared meals.Following is a competitive analysis of the various meal replacement a lternatives Fast Food Industry in 2012 at a Glance It is no secret Americans love fast food. And its not just us The Golden Arches have spread across the globe, and emerging markets are one of the fastest growing areas in the industry. But the fast food industry is not without its challenges, particularly in the United States. From rising food cost, economic recession and changing perceptions about health, many fast food franchises have been feeling some heat.But sort of than flee from this challenge, the fast food industry has been adopting new practices and offering new products. novel society is on the go, and there is plenty of demand for a quick bite at all times of the day. Fast food franchising opportunities exist in the traditional spaces like burgers and pizza, but are besides sprouting up in healthy and unique ways as well. The Industry The fast food industry, also known as Quick Service Restaurants (QSR), has been serving up tasty morsels for as long as people have li ved in cities.The modern system of fast food franchising is believed to have started in the mid 1930s when Howard Johnson franchised his second location to a friend as a means to expand operations during the Great Depression. And oh how it has grown As cars became commonplace, the drive-thru concept brought explosive growth to the idea of food-on-the go. Fast Food was added to the Merrion-Webster dictionary in 1951 and U. S. fast food companies are now franchised in over 100 countries. In the U. S. alone there are over 200,000 restaurant locations Revenue has grown from $6 billion in 1970 to $160 billion coating year, an 8.6% annualized rate. Fast food franchises focus on high volume, low cost and high speed product. Frequently food is preheated or precooked and served to-go, though many locations also offer seating for on-site consumption. For stands, kiosks or sit-down locations, food is standardized and shipped from central locations. Consumers enjoy being able to get a familiar meal in each location, and menus and marketing are the same in every location. Whats Been Going Wrong? There have been challenges for the fast food industry in recent years that have been pressuring profit margins.The industry as a whole has turn out robust enough to withstand these challenges, though some players have done better than others. Over the last decade there has been increased focus on the quality of food served in fast food restaurants. Typically highly processed and industrial in preparation, much of the food is high in exposit and has been shown to increase body mass index (BMI) and cause weight gain. Popular books such as Fast Food Nation and documentaries like Super Size Me have increased public awareness of the disconfirming health consequences of fast food.Fast food companies have responded by adopting healthier choices and have had some standard of success, but the shadow of bad press still hangs over the industry. Rising trade good prices have also signifi cantly crunched many fast food franchises. With food and beverage inputs making up approximately 33% of cost, higher prices for livestock, corn, wheat and more have seriously shrunk margins over the past decade. In such a fiercely competitive space it is impossible to force a price increase on customers, so profit margins are often south of 10%.The recent economic recession did lower commodity prices, but the recession brought on its own complications, and now prices for commodity inputs are on the rise again. Fast food had been thought to be largely recession proof, and indeed the industry did not suffer nearly as much as other discretionary spending sectors. In fact, there was some increase in consumer visits as people choose cheaper fast food options over fast casual or traditional restaurant choices. But overall, the recession hurt spending, and consumers overall purchased less with each trip. Fast food franchises fared reasonably well but still felt some pain.Market saturation is also a relevant issue in the fast food industry today, at least in the U. S. There is a McDonald franchise is in almost every town, and it usually sits in a row with several competitors. With so many competitors which offer alike(p) products there are fewer customers per location. Increasingly fast food restaurants are also losing market share to fast casual, a relative newcomer in the restaurant space. Where do we Go from Here? Busy citizens still need quick meal options, and fast food restaurants are fighting these challenges with gusto.Now offering healthy choices to battle the stigma of unhealthy food, some quick service restaurants now focus on fresh or organic products. From franchises focused solely on salads or healthy wraps to the lower calorie options offered at traditional burger franchises such as Wendys or McDonalds, consumers are able to make better choicesif they want Fast food franchises are also guidance on expanding into new product lines, such as the coffee i nitiative in the McCafe. Intended to offer competition to Startbucks, McDonalds is luring customers back into their stores, hoping they will purchase food as well.Many franchises have been exploring other meal times such as breakfast and the mid-afternoon snack for growth opportunities and to increase real estate utilization. The industry is most effectively battling saturation in spite of appearance the United States by creating a much more versatile range of offerings. Sure, there is a McDonalds in every town, but there are very few crepe franchisesyet From new cultural cuisines to fresh takes on a traditional story, there are many moretypes of quick service restaurants than ever before. The fast food industry is still a large and diverse industry with plenty of luck.As one would hope, challenge is being answered with innovation, and fast food franchises are responding with new offerings, pricing and strategies to lure consumers back in. Non-traditional fast food franchises are springing up and gaining traction, and more creativeness will always be welcome Consumers are now on the look-out for new ways to eat fast and healthy. And as the industry continues to evolve and the economy strengthens, fast food franchise profitability will continue to grow. Porters five forces industry analysis for Krispy Kreme Saturday, January 29th, 2011 at 900 am.What is Porters Five Forces? Well I doubt there is any need to explain one of the most famous strategic tools around but just in case, it is a tool to analyse the outer industry to find the root causes of profitability. Again seeing an example is useful and below is a five forces analysis of Krispy Kreme. Rivalry among existing competitors (High +++) * High concentration of rivals e. g. Starbucks and local chains * Static market growth * High fixed costs * Perishable products (food and drink) A large number of competitors in the industry are all competing for the same customers.Coffee chains (e. g. Costa, Starbucks) are all competing to be number one in the market and have similar corporate goals. While product differentiation is limited, there is fierce differentiation by product range, brand and store ambience (e. g. seating). There are zero switching costs for customers, which promotes price wars. Market growth is static, which promotes fierce fighting for market share, and there is saturation of competition cod to the limited number of prime locations available for outlets. Smaller chains have to pay a indemnity for prime sites or settle for less desirable locations.Threat of new entrants (Medium +) * hulking capital requirements requisite to build chain of stores * Favourable locations are already occupied * Economies of scale in distribution and raw ingredients (lower per unit costs due to the experience curve) * Product and brand differentiation Capital requirements for individual stores are low, however new entrants wishing to compete on a like basis with national store networks, distribution channels, brand equity development and advertising, face large capital requirements to gain market share.This is reflected in the large number of individual outlets compared with the small number of large, proven top specialty eateries. The UK commercial blank space market is landlord-driven and controlled premium locations in the UK are scarce and command high prices with most of the favourable locations within town centres, airports and train stations already being occupied by existing competitors. Threat of substitutes (Medium +) * Large choice of alternatives with similar products e. g. energy drinks, cakes, biscuits, ice-cream, chocolate * No switching costs.Although a consumer can choose from multiple substitutes (e. g. desserts, pastries or drinks), lastingness eateries compete based on convenience and opportunity. Most people buy from speciality eateries when travelling, shopping or meeting people. This is evidenced by the location of the eateries, which is co ncentrated around high stride locations such as train stations, business districts and shopping centres. For a consumer this becomes a competitive choice rather than a substitute choice (e. g. do I buy a coffee from Starbucks or Costa).former(a) substitutes come from full menu eateries such as restaurants and fast-food outlets with a smaller threat from supermarkets. Bargaining fountain of suppliers (Low) * Vertically integrated businesses with only commoditised raw ingredients * Large number of suppliers to choose from and low switching costs Bargaining power of buyers (Low) * Buyers are fragmented and numerous * Although there are no switching costs for the buyer the food and drink market is part of the fabric of society Conclusions and Recommendations.Fast food consumers of Bangladesh, especially the university students, considered brand reputation as the most important factor when choosing fast foods followed by nearness and accessibility, simile in taste, cost and quality k inship, discount and taste, clean and hygiene, salesmanship and decoration, fat and cholesterol, and self-service. The recent upset in the fast food industry of Bangladesh was created by the discovery of unethical practices conducted by several fast food businesses resulted in consumers putting their trusts on renowned fast food brands only.Thereby it is seen that the fast food houses with reputed brand name and recognition i. e. KFC, BFC, Pizza Hut, Coopers etc. are carrying out their businesses in a usual manner even in the toughest time of the industry. The majority of the fast food brands that passed with flying colors during the mobile courts inspection for quality maintenance were able to either establish or revitalize their brand reputation. Eventually as suggested by the research findings, the university students will select such fast food brands that have brand reputation.Besides the brand reputation, the other important factors were nearness and accessibility, similar tast e of fast food, cost and quality relationship, discount and taste. In case of nearness or proximity and accessibility factor, consumers prefer to go to the fast food outlets that are close from their own home or think over institutions. It is seen that the fast food shops in Bangladesh has already considering the factors by establishing their outlets near big corporate houses and private universities. Especially, in Dhaka city this practice is seen in Bailey road where majority of fast food shops are located.Near Bailey road, there are 3 girls school and collages, and 3 boys school and 2 collages in walking distance. Almost similar situation prevails in Gulshan, Banani area of the city where KFC and Pizza Hut outlets are situated near 3 private universities. It is understandable from the situation that the students poring over at these institutions consider these nearby fast food outlets whenever they decide to consume fast foods. There is an opportunity here however, for new fast food shops to compete with the existing fast food outlets.Since establishing a new outlet in an already competitive business space is expensive and difficult, the new fast food businesses can introduce mobile fast food outlets. Through mobile fast food outlets, new fast food businesses can deliver their fast foods that are already cooked fresh in their shops, but kept hot and delivered to the students instantly with their own choice of accompanying taste enhancers i. e. tomato sauce, cheese etc. These mobile fast food outlets could be on top of a mini-truck, van etc.The similar taste of the fast food factor refers to the fact that no matter which fast food outlet a particular fast food item is bought from, the taste should be similar. For example, if a chicken burger is bought from an outlet of KFC, the taste would be similar to any other chicken burger bought from any other KFC outlet. The taste could differ from other fast food shops as the different business use taste as differe ntiating factor in case of food items. But the businesses have to keep in mind that too much difference in taste of similar fast food items makes the consumers confused.The cost and quality relationship is also an important factor considered by the consumers of fast food. If the cost of a fast food item is high, it is usually considered to be carrying high quality and vice versa. So, the businesses of fast food products have to be careful in setting the prices of the fast food items. The pricing should be such as it offers the right amount to value to the consumers in a competitive price that at the same time ensures adequate profit margins for the fast food businesses. Finally in terms of discount and taste factor, the consumers consider the availability of discounts in fast food outlets.Usually these discounts are offered as group discounts i. e. arranging a party or affable gathering at a reduced price package etc. Consumers consider this option when choosing fast food products. They might not immediately use this factor but it puts the fast food shop in their consideration set for later use. This study recommends that the fast food producers or distributors at Dhaka city should focus more on the brand reputation, nearness or proximity and accessibility, cost, quality, discount, and similarity in taste factors.If they are able to fulfill these needs, university students of Bangladesh will be induced to buy and consume fast food whenever they are out of their houses. However, there is an ample scope to conduct further study on the preference factors used by the office-goers, housewives, and visitors in buying fast food to determine if there are any more common or unique factors prevailing among these different groups that might be important in making decisions regarding the choice of fast food items in Bangladesh. Abstract.Fast food industry is a high growing sector of Bangladesh. It is concerned with the tastes and habits of the people. The food-taking hab it especially in fast food segment has been changing very fast over last decade among the people of Dhaka the capital city of Bangladesh. The reasons could be attributed by the increase of awareness, growth of education, development of information technology, and expansion of television channels and marker media in Bangladesh. Hence, this paper aims at identifying the preference factors of fast food consumers living in Dhaka city.This study was conducted among the university students who usually eat fast food at their leisure time. To conduct the study, a total of 250 respondents were interviewed with a structured questionnaire. Both descriptive and inferential statistics were used in analyzing the data. Multivariate analysis technique like factor analysis was performed to identify the preference factors of the fast food student-consumers of Bangladesh. Multiple regressions were run to identify the relationship between the factors identified and the overall preference of the consu mers.Results show that the consumers give most importance on brand reputation of the food item followed by nearness to receive and accessibility, similarity of taste with previous experience, cost and quality of the food, discount and taste, cleanliness and hygiene, salesmanship and decoration, fat and cholesterol level, and self-service factors. This study suggests that the brand reputation, nearness and accessibility, similarity in taste, and cost and quality relationship should be emphasized to improve the attraction of the university students towards the fast food items in Bangladesh.