Table of Contents:
1) Executive Summary ………………………………………………P.2
2) Industry Structure Analysis ………………………………………P.2
3) Five Force Model ………………………………………………….P.3
4) Comparative industry structure analyses ……………………….P.5
5) Critical Success Factors Now ...……………………………..……P.5
6) Critical Success Factors in Future...………………………..…….P.7
7) Conclusion …………………………………………………………P.8
6) Appendix ………… ………………………………………………..P.9
Executive Summary:
Hong Kong is a city in which efficiency and speed are demanded and expected. This living style affected the eating habits of Hong Kong people. People tends to dinning out and are more interested in prepared food which can be served quickly or allow them to take away in order to saving time, fast
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By comparing the location, price, taste and environments of the restaurant, people can choose what type of restaurant to go. As a result, consumers do have high bargaining power that they do not have high switching costs.
Suppliers Power:
In Hong Kong market, there are so many food suppliers and food distributors which often supply raw food materials to catering, for example, local fresh fish markets. Their principal activities are supplying food to ultimate consumers. Moreover, most of the raw materials are imported, according to the Food and Environmental Hygiene Department, over 90% of food is imported from other countries. Unless the main ingredient of the product is not available, the bargaining power of suppliers of fast food industry would be therefore relatively small. The industry has very strong negotiation position for the raw materials and with low switching costs.
Comparative industry structure analyses
This costly barrier is the most probable reason that people do not enter this business. The food-service industry doesn’t have any exit barriers, which allow firms to easily leave the industry if they’re not successful, at virtually only the cost incurred.
Appendix 3. indicates a summarize of the power of each force on five axes of fast food industry. Power is low as the axes go outwards. On the other hand, the force is high where the axes go inwards. The total
Many people believe that the first fast food restaurant was a McDonald’s, but contrary to popular belief, the history of fast food did not begin at the same time as the history of McDonald’s. According to Katie Colburn’s article “The History of Fast Food in America,” the name and location of the first fast food restaurant is lost to history. There is some evidence, however that it began in Ancient Rome. The Urban living in Rome included multi-storied apartment buildings that has little to no cooking area. Therefore, such things like “street vendors and walk-up restaurants fed large segments of the populace” (Colburn). In this situation, fast food seems very harmless and convenient, but as I have learned over the semester so
In Australia exist several restaurants which give to the costumer fast food, as Mc Donald, KFC, Hungry Jack’s, Subway. All of them offer to the costumer fast food, but Subway offer something different as such healthy food.
For restaurant retailers, the power of suppliers is high. This can be indicated by lack of substitute produces and low importance of restaurants as buyers.
My chosen firm is Odoba Mexican Grill and it produces quality meals that aggressive prices. In other words, the aim of the restaurant is to offer wide variety of competitively priced meal choices. Price and quality are two important factors in the success of any food business. If prices go up too much or quality decreased significantly, the demand will go down. But another very important factor is income. With changes in income, demand can see a negative change. If income comes down for regular customers, they will cut down the quantity demanded. This means that regular customers who were frequently going for meals at the restaurant might choose to go less often or order smaller meals or low priced alternatives.
The majority of Americans enjoy fast food like bees enjoy their honey. Fast food is hard not to love due to families experiencing fast paced days, parents who work more than 20 hours a week, and having children with picky appetites can be rough. For most American families, it can be a challenge to not consider eating fast food more than once a week. The fast food industry has grown tremendously through the years. The one restaurant that is known all over the world for their golden arches and their big macs is McDonalds. With knowledge and personal experiences, I can say that McDonalds is by far the worst fast food restaurant in America. I believe this due to how unhealthy the food is for our bodies, the disturbing facts about the happy meals, the poor service, and the non-cleanliness of the restaurant.
There are many key aspects to owning and operating a successful restaurant in a competitive market with little or no room for error. A restaurant’s
The article that I chose to write about is one regarding the public opinion of fast food workers; particularly at McDonald's. In chapter 5, it states that a public opinion "commands the attention of politicians, the news media, and political scientists." Many employees at McDonald's are petitioning to bring their minimum wage higher than $8 per hour. Fast food workers all across the United States are demanding higher pay. They are saying a more reasonable amount per hour is $14 or $20 if you are supporting a child. People who disagree with this mentioned in the article that if the hourly minimum wage goes up at fast food restaurants, so will the prices of the food which in return will have a negative effect on even more citizens. Some McDonald's
Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.
The fast food industry treats their workers unfairly. The employees in the fast food industry work long, hard hours and get paid minimum wage, in which many cases is not enough to support themselves and their families. Some of the employees put their lives at risk working in the fast food industry. Many workers are greatly affected by their long hours and their salaries. Due to the long hours and salaries they aren’t able to support their families with the essentials. Also many risk their lives to support themselves and their families.
For a company in the restaurant industry, there are no switching costs for consumers. It is not like, for instance, the cable industry where cancellation fees are prevalent or an electronics industry where prices for a new product are high. If one day, the consumer decides that he or she would like to go to Sweet Green for lunch instead of Panera, the only switching cost would be the price difference between the two meals (which may be
According to Restaurants Canada more than one million Canadians are working in the vibrant restaurant and foodservice industry, the first job for 22% of all Canadians is in the food service industry (Restaurants Canada, n.d). Canada’s restaurants employ over 500,000 under the age 25 (Health and Safety Report, 2016). Although it is generally considered safe to work in a fast food industry setting it is important to note that there are several hazardous equipment, chemicals and risks that should be taken into consideration and paid attention to by both employers and employees. The laws that govern health and safety in the workplace provide a minimum level of protection that must be maintained. Employers are encouraged to exceed these minimum
If we look at the fast food industry today there is room for success. Based on RNCOS’ new US Fast Food Market Outlook 2010, fast food industry growth rate is strong. Especially, hamburger sales growth is reported at the healthy rate of 4.6% in 2008. The market is expected to grow to cross the $170 billion marks by 2010.It is believed that due to the economic meltdown, fast food industry is benefiting from people being more prices conscious. People who were enjoying nice means at fancier restaurants are now turning their choice of means to more economical ways.
to penetrate into the dinner market without risking its existing business model for fast food while benefiting
The paper presents an analysis of the different factors influencing the restaurant industry and how these factors increase or decrease the demand for such services. The hypothesis that will be examined is that the performance of restaurants is mostly based on the type of food chosen by customers when they decide to go out for dinner, lunch, breakfast, or simply for a snack. What type of food refers mainly the nationality or concept of the food, (traditional American, Italian, Indian, Latin, or from any other type of culture). This factor is important because when customers go out to for dinner; they decide what to eat before deciding where to eat. That is why this factor is considerably important according to the hypothesis.
Nowadays tourism industry becomes one of the most important economic growth factor in Hong Kong. According to the Tourism Commission, “In 2011, Hong Kong received a record-high of 42 million visitors from around the world, a remarkable increase of 16.4% over 2010”. Such great number of tourists contributes to the fast food industry and making more potential customer in Hong Kong.