First started as an ice cream parlor in 1975, today Jollibee has become the number one fast food chain that serves burgers, sandwiches and rice meals in its originating country, Philippines (Beamish and Bartlett, 2014). It first started its foreign expansion to Singapore, and today it has expanded to 9 countries including United States. There are countless countries withholding potential for Jollibee’s expansion, and several of them will be discussed in the following discourse.
INDONESIA
One of the countries in which Jollibee should be expanding to is Indonesia. One of the main reasons Jollibee should expand to Indonesia is due to their strong growth of middle class. According to Kerschener and Huq (2011), middle class consumers are
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CANADA
Canada is a multi-cultural country as it is home to many races and ethnicities. As of 2011, the ethnicity with the largest number of population is none other than Filipinos. According to www.cic.gc.ca (2012) Filipinos are in the first place as having the largest population of immigrants who are permanently residing in Canada. The growth of Filipinos living in Canada has been showing a positive trend, as there are only 11,011Filipinos in 2002 as compared to the 34,991 permanent Filipino residents in 2011. This would also come as a positive prospect for Jollibee to expand to Canada. Having potential customers who probably have the same customer base with customers in Philippines would benefit Jollibee because it might reflect the success Jollibee has in the Philippines. The number of Filipinos in Canada is another opportunity for Jollibee to deliver a taste of home to Canadian Filipino residents.
In accordance with euromonitor’s (2014) research, Canadians have been constantly on the lookout for new items on fast food restaurants. Apparently, this has contributed to the fast food industry’s improving performance. For instance, Canadian Business stated that there has been interest on new restaurants that offers new concepts (Borzykowski, 2015). A Mediterranean concept restaurant called Zoe’s kitchen went public in 2014 and has then increased 64% in stock. The newfound taste of the Canadian
The merge of Burger King and Tim Hortons will undoubtedly have considerable effects on the personnel of both companies while an expansion into US markets will result in more substantial effects. First, if the company chooses to expand in the US, and chooses to relocate the headquarters of Burger King to Canada, this will cause a lot of administrative employees of Burger King to relocate as well. This type of relocation would also be a cause for change in the way business is conducted due to varying labour laws, political, economic, and legal policy from Canada to the US. Additionally, the CEOs and top
The fast food industry is a ‘red ocean’ as it is already well defined where rivalry is intense. It is also a perfectly competitive industry as the barriers to entry are low and there are many rivals
When more fast food restaurants opened across America, the “Speedee Service System” was imitated by others, and competitors sold the same items on their menu as McDonald’s. Schlosser stated, “Entrepreneurs from all over the country went to San Bernardino, visited the new McDonald’s, and built imitations of the restaurant in their hometowns.” (22) By 1976, beef consumption has risen to 94 pounds per
This book discusses the fast-food industry and seeks to describe the impact of the industry on the U.S. economy and society. Also, it talks about the guys who has been investigating the fast food industry for many years. From his broad research, he has uncovered an abundance of little-known, frequently unsettling truths about the fast food industry.
The fast food industry in the US is witnessing the increasingly fierce competition among Chipotle, Chick-fil-A, McDonald’s, Jimmy’s egg and KFC. In addition, consumers increasingly favored foods clean and healthy. Foreseeing this need, numerous popular fast food restaurants sprung up promptly. The first Chipotle restaurant is opened in 1993 by Steve Ells in Colorado. On the contrary, McDonald’s is founded by McDonald’s family with a long history as well as one of the oldest brand in America. My paper will explain the similarities and differences in their three characteristics between Chipotle and McDonald’s, both of them are large enterprises in the fast food industry which have large market shares. Then, I also give opinions to differentiate
Chipotle has opened their stores in few countries such as the UK, the US, Canada, Germany and France. It is now time for the corporation to follow the lead from other companies like Yum. Brands such as KFC and Taco Bell as well as McDonalds expand their footprint in the Asian market like Japan. For example, Chipotle operates less than 2,000 restaurants in only 5 countries, while McDonalds operates more than 35,000 restaurants in 119 countries, and Taco Bell, another Mexican restaurant, operates 6,500 restaurants in 20 countries which shows that the Chipotle could do better if it expands its business.
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.
The New York Times bestseller Fast Food Nation: The Dark Side of the All-American Meal is one of the most riveting books to come out about fast food restaurants to date (Schlosser, 2004). Fast food consumption has become a way of life for many in the United States as well as many other countries in the world. The author Eric Schlosser an investigative reporter whose impeccable researching and bold interviewing captures the true essence of the immense impact that fast food restaurants are having in America (2004). Beginning with McDonald’s, the first fast food restaurant, which opened on April 15, 1955 in Des Plaines, Illinois to current trends of making fast food a global realization McDonald’s has paved the way for many fast food
Due to economic downturn the strength of the buyers’ power has increased as the industry looks to gain consumers with pricing strategies much like those of McDonald’s “Value Menu” and combination meals even though the cost of commodities have gone up (James, 2010). Customers of QSRs are looking for quality food without high costs. While Chipotle does not have a value menu or offer any type of combination meal much of their success is due to the fact that the customers are willing to pay a higher cost for higher-quality (Chipotle, 2010).
The restaurant industry is said to be one of the oldest industries in the economy. As the economy and urbanization grow, so too does the industry of restaurants; it’s for this reason that the industry has been growing at a rapid pace. Even with the restaurant industry ebbing and flowing, there are still new entities entering the fray consistently. Some restaurants may close, but it will not be too long before a new restaurant opens in the place of the old one. Historically, the restaurant industry has contributed nearly 4 percent to the gross domestic product (GDP) of the United States (U.S.) economy. The most recent findings show that the restaurant industry employs more than 12.7 million people (which is approximately equal to 9 percent of the
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.
The company I have chosen to base my assignment on is Taco Bell. It is a leading Mexican style fast-food chain serving tacos, burritos, signature quesadillas, Border Bowls®, nachos and other specialty items. Currently, Taco Bell serves more than 35million consumers each week in approximately 5,600 restaurants in the United States of America. It is recognized as the best Mexican fast-food chains in the United States of America (Yum! Brands, 2010). This fast-food chain plans on introducing its products in Malaysia.
Mission – By delivering uniquely flavored Mexican style food at budget prices, Taco Bell seeks to establish an international presence over the next 5 years. The current international fast food markets in Asia, South America, and Africa are dominated by American style fast food which leaves considerable opportunity for competing styles of cuisine, Taco Bell will use an aggressive marketing plan and develop a supply chain network that will enable rapid growth in overseas markets. Newly established restaurants will be able to supply local communities with quality meals at competitive prices while simultaneously creating value for shareholders.
Based on the explanation above, we can identify some opportunities and threats of fast-food industry. As we can read from this case, we know that the fast-food chains were recognizing the saturation of the industry in U.S. This condition can become a threat, but it can be an opportunity if the companies in the industry try to do international expansion throughout U.S. because growth in other countries was expected to be one of the only sources of growth for many of the top hamburger