The Industry Of Western Fast Food Restaurants

1395 Words6 Pages
Industry Analysis Rivalry among Competing Sellers Now in the industry of western fast food restaurants, there are several strong competitors against Yum! Brands such as The McDonald 's Corporation, Papa John 's International, Inc., Domino’s Pizza Inc., Subway Inc, Wendy’s Company, Burger King Inc, and so on. These companies are competing with Yum! Brands both in the U.S. and internationally. As a result of the high level of competition within the industry, profit margins are low for most companies, forcing them to lower cost and to take quality controls to maintain efficiency and minimize wastage to attract customers. Companies also face strong competition based on quality. Good quality ingredients and well-presented meals are highly…show more content…
Yum! Brands’ biggest competitor, McDonald’s Corporation, is specific in the hamburger restaurant segment, with 90% of the market share within the industry. McDonald’s two largest competitors, Burger King Corporation and Wendy’s International, Inc., each only hold a mere 4% of the market share. As more and more fast food restaurants establishing in the U.S., Yum! Brands Corporation faces its highest competition domestically. The largest seven fast food restaurants possess 45% of the total market share. So developing internationally is a vital and wise decision that Yum! Brands has made. In comparison to the U.S. division, the situation is totally different in the international market. KFC is the first fast food restaurants to enter the China market, and continues to be the most popular brand. Pizza Hut is the first chain pizza restaurant to bring pizza, Western casual dining, and pizza delivery to China. According to these facts, the competition is less severe in the China market. However, Yum! Brands need to deal with a new wave of competitors in foreign countries. Although it provides products that are differentiated from local restaurants, the tastes of consumers and the quality of service will greatly affect the success of the corporation. If consumers are not willing to purchase the food type that Yum! Brands offers, the company will lose to other restaurants that have been long established in foreign countries. Potential New Entrants The
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