Swot Analysis Of Fast Food Industry

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

Fast food popularity has grown tremendously over the years. People spend more time trying to save time in today’s world and in

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.

Some main strengths of Trader Joe’s are the strong brand image, their employees, organic and private label products, customer loyalty, and offered unique products. Trader Joe’s strong brand image helps them to attract and retain more customers. Their private labels are named according to the background and nationality of food. They offered an extensive line of private label items with brand names such as Trader Joe’s, Trader Ming’s, Trader Jose, Trader Giotto. Due to their strong brand image, they established themselves as a leading retailer of food and non-food items in the US. Americans ranked Trader Joe’s overall as No. 1 retailer in 2013 (Ager & Roberto, 2014). Trader Joe's offered unique and high-quality products from different countries which attract customers to try new items and stocks of 4,000 items, 80% of which bear one of its own brand names. Trader Joe's describes itself as "your neighborhood grocery store" (Wikipedia, Trader Joe’s). Trader Joe’s claimed that 80% of its customers had attended college. The company described its target market as “intelligent, educated, inquisitive individuals” and they reach this customer by opening store among well-educated residents (Ager & Roberto, 2014). Their customers are too loyal towards their brand image so they keep coming back. Instead of targeting all customers, they need to target new customers in order to grow their business and to keep being a leader in the retail industry in the US. And also, their employee are valuable assets of the company, who led them towards the further growth of the company, therefore they are treated fairly and trained to provide the nice and friendly service to Trader Joe’s customers. Almost most of the people want to work at Trader Joe’s because they pay more than minimum wage and higher compare to other retail stores. New part-time hires earned $12 per hour and full-time employees earned approximately $50,000 per year which is above minimum wages. Plus, they contribute 15.4% of employee's salary towards retirement Saving. Furthermore, they offer good health and others benefits even to part-time employees (Ager & Roberto, 2014).

Our mission is to serve delicious, reasonably priced meals with an emphasis on local sources for food, craft beer, and wine, along with second mile hospitality and operational excellence. Our hospitality and food quality training is heavily influenced by the 16 months the owner worked with Chick-fil-A in Fort Lauderdale and as a Grand Opening Trainer.

According to National Restaurant Association the restaurant industry covers one million fast food service locations in the U.S. and employs 14 million people. Globally, fast food generates a revenue of over $570 billion and it is expected to exceed $780 billion in 2016. Furthermore, the industry expects an annual growth of 2.5 percent for the next several years. The United States generated a revenue of $200 billion in 2015. In the restaurant market share 48.5 percent are covered by full service restaurants, which means that the QRS segment has sales of 51.5 percent and is supposed to grow

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 quick serve restaurant industry is a large with 2012 annual revenue of $169.7 billion spread over 190,000 businesses. Globalization of the industry is expected to add $186.2 billion in revenues by 2017. The economy and new health trends caused an average annual contraction of 0.7% across the fast food industry from 2007 to 2012. However, the industry was able to grow by 1.8% and 1.3% in 2010 and 2011.

Sageworks recently released data on the restaurant industry, showing privately held and other eating places are posting nearly 8% sales growth, on average, over the last 12 months amid improved quality. Net profit margins have averaged 3.25% in the last 12 months, roughly even with 2010 average net margins of 3.48% that were the highest since before 2002. Restaurants and other eating places have generated average sales growth of 7.85% over the last 12 months, compared with 4.61% growth for the full year of 2010 and around 8% growth in 2006 and 2007. Total industry sales are expected to exceed $660 billion in 2012, a 3.8% increase over 2012.

Trader Joe's is an American supermarket founded in Monrovia, California and owned by a German private equity family trust. Trader Joe's named after its founder, Joe Coulombe. The chain began in 1958 as convenience stores called Pronto Markets. The first store branded as "Trader Joe's" opened in 1967 in Pasadena, California (Wikipedia, Trader Joe’s). Trader Joe’s offered products such as sprouted wheat bread, whole-bean coffees, and black rice which are not always found in any grocery stores. They also focus on selling private label, gourmet, organic, imported food and domestic wines. Trader Joe’s offered private label items with brand names such as Trader Joe’s, Trader Jose, Trader Ming’s, and Trader Giotto. Their 80 percent or more products consists of private label item and they don’t carry any major brands at the store.

The fast food, or quick service restaurant industry (QSR), represents approximately 200,000 restaurants and $155 billion in sales in the U.S. alone, they are one of the largest segments of the food industry (Hoovers, 2011). This segment of the restaurant industry is “highly competitive and fragmented… number, size and strength of competitors vary by region, market and even restaurant. All of these restaurants compete based on a number of factors, including taste, quality, speed of service, price and value, name recognition, restaurant location, customer service and the ambience and condition of each restaurant” (Chipotle, 2010).

The fast food industry has been growing dramatically during the last few years. For this reason, we should try to find out what are the several factors why fast food consumption keeps growing among young people and adults. Therefore, as we have seen, the popularity of fast food is spreading rapidly among many people due to the following three main reasons: good taste, convenient time, and price. Personally, working for a fast food restaurant for a brief moment in my life, I can attest to this. Marketing also plays a big part to more people eating fast food. It’s in our culture in America to expect fast food companies to market and strategize their ways to make us, the consumers, to buy more food and consume more food so they can make more profit. Especially now with commercials and social media. The fast food industry has thrived in the modern era. It’s thriving so much, the industry is growing faster than the U.S economy, at

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.

Associated British Foods PLC is a British multinational food processing and retailing company which was founded in the year 1935 by a Canadian named Willard Garfield Weston and from that date the rest is history. (Grace’s Guide, 2016).