Strategic Analysis of the Uk Fast Food Industry

Fast food has turned into a genuine fundamental of our everyday life and made a religion of establishments that reaches out to the millions of Americans across the country. The Fast Food industry in a few eyes has been one of the sharpest developments this world has seen. It has been driven by our stomachs and our wallets for 40 to 50 years it's as yet developing to this date. The man who make-believe it can be known as the best representative, this nation has ever observed. The Fast Food Industry is big to the point that it has influenced our wellbeing, changed our way of life, and misshaped our territory as far back as the very first moment.

The fast food industry has played a role in America’s economy. Fast food restaurants are the leaders in so many different things. They lead in marketing and jobs employed. “The tremendous success of the fast food industry has encouraged other

The fast food industry encompasses a wide variety of economic situations. To begin with, within in the industry a widely discussed topic is the idea of workers forming unions in order to fight for better working conditions. Advertising is also a prominent factor that guides the productivity of businesses of the fast food industry. Another guiding force for fast food chains is globalization of their businesses, without advertising and globalization of businesses fast food chains would not be as successful as they are. The success of businesses can be determined through the idea of elasticity and the income effect because if a business knows the demographic they are targeting the companies will likely know how responsive profits are to a change

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

A fat tax would plague producers and outlets. Such was the case with the world’s first fat tax introduced in Denmark. This tax on foods high in saturated fat was dismissed after less than a year and left many consequences in its wake. It has been guilty of “increasing prices for consumers, increasing companies' administrative costs and putting Danish jobs at risk," as stated by the Danish tax ministry. As a result, the planned sugar tax has also been abandoned. As well, the tax was a costly procedure and failed to change the eating habits of people in general. A fat tax on fast food would have the same limitations and ultimately lead to failure.

PESTLE stands for Political, Economy, Social, Technology, Legal and Environmental (PESTLE analysis, 2014). The importance of PESTLE analysis comes when, firstly, there’s a demand to analyse the specific issues on the country such as race and religion difference, to guide the company to enter the market without offending any race and religion. Secondly, to find out how the government policies works in the country and how to make deals accordingly based on it. (Partridge, 1999). Thirdly, to identify the economy of the country, such as the income levels of the people and the standard of living to decide whether the products offered is at the same standard, and worth the expenditure.

The fast-food industry is changing everyday. There are new products being introduced in the market and new slogans being created. The companies in the fast-food industry will do their best to make the greater burger, and to make bigger and better fries.

Over the past 50 years, the way we eat has changed more than it had in the previous 10,000. Now, 60% of Americans over the age of 20 are overweight. The fast-food industry is highly responsible for today’s health epidemic. Some people choose to blame the government for not balancing individual rights, and the common good. However, the government is not forcing you to eat. You put yourself at risk of diet related health problems.

The global growing number of obese among adults and children is alarming and is one of the biggest public health issues that health systems are facing (Laura Cornelsen et al. 2014). In 2014 adults overweight prevalence was estimated at 1.9 billion worldwide of these 600 million were obese and this number keeps increasing at a noticeable pace. Nearly one-thirds of the world population is obese or overweight and 41 million children under five were overweight or obese according to WHO (2016).

(White, pg.3) The calorie-rich fast food is cheaper than a lot of the supermarket food especially to the lower classes which would come to rely on the availability of these fast food chains for cheap and efficient calorie rich food to feed themselves sacrificing their health to just be able to eat overall. With this in mind, this shows that the lower class people are often trapped in an environment which forces them to eat unhealthy due to the cost of nutrient-rich foods and due to the placement of chain supermarkets as compared to the placement of convenience stores and fast food chains in their respective environments. Not only are these lower class stuck when it comes to income, they are stuck with the only things available and that is fast food and convenience stores which rarely have vegetables and

“In 1970, Americans spent about $6 billion on fast food. In 2014, the spending rose to nearly 200 billion. By 2020, the number is expected to be over $223 billion.” The fast food chain has quickly become the number one best seller all over the world. “Arguably, the first fast food restaurant was A&W, who first opened back in the year 1919.” As time continues along the fast food chain keeps on growing. Having already more than 500,000 restaurants all over the world, it is feared that profits in 2020 will arise to an astounding $223 billion dollars for the fast food industry.

The fast food industry came about quite some time ago in the 1900’s. McDonalds is the largest fast food chain in the world and started it all before any other quick service restaurant. The McDonald brothers opened their fast food chain in 1948 and they had several chains soon after. KFC was already a restaurant in the United States, but after McDonalds changed the fast food industry KFC started to adapt its style and speedy cooking techniques and changed its ways along with many other places catching onto the trend. The quick service industry that has been around for nearly 100 years now is still in the growing stage of its lifecycle. The business style has added new restaurants that are apart of serving food to people on the run, incorporating the drive-through and changing the menu to be healthier over the years. The quick service industry is always open and serves it customers at all hours of the day, no matter what time of the year. There are many places that have opened up since McDonalds, making the fast-food industry very large with many competitors among them all. To keep up to date the restaurants have to have updated technology to be able to serve its customers the quickest, along with having top notch technology and health code regulations. Porters five forces all take part with this industry, the threat of new industry, competitive rivalry, buyer power, supplier power, and threat of substitutions. These have always been apart of the industry and will

Americans love efficiency, and they love to eat, thus, the reason for the quick service food industry (QSR). The restaurant industry has been slightly unstable as the economy climbs out of recession, and families’ slowly gain income to allow for a night to dine out. As a whole, the restaurant industry – everything from full service to fast food – accounts for 47% of this year’s food dollar share, while supermarkets claim the majority, accounting for 53%. Within the restaurant industry, fast food restaurants were the only sub industry to show positive guest traffic in the first quarter with a .8% increase, as compared to 2013.

Substitutes for the three Yum brands include their competitors in the fast-food industry, competitors OF the fast-food industry (formal dining), and eating in instead of going to restaurants at all. In recent years, the subindustry of fast food colloquially known as “fast casual” has become a small but growing substitute. However, this subindustry is still in its early years, so its future viability regarding its ability to compete on the national or international level with traditional fast food is still uncertain.

PESTLE analysisis an output of the outer macro-environment in which an association exists. It is a helpful device for comprehension the political, economic, socio-social and innovative environment that an association works in. It can be utilized for assessing business development or decrease, and all things considered the position, potential and course for a business.