Literature Review of Fast Food Industry

Only available on StudyMode
  • Download(s): 2666
  • Published: November 18, 2008
Open Document
Text Preview
With today’s hectic lifestyles, timesaving products are increasingly in demand. Perhaps one of the most obvious examples is fast food. Today the demand for the, hectic lifestyles, timesaving products are increasingly. Obliviously one of the example is Fast Food Industry. The rate of growth in consumer expenditures on fast food has led most other segments of the food-away-from home market for much of the last two decades. Since 1982, there is growth rate in consumer spending at fast food. The consumers spent at fast food outlets grew at an annually he proportion of away-from-home food expenditures on fast food also increased. Ref:http://www.ers.usda.gov/publications/foodreview/jan1999/frjan99b.pdf , Causes and Consequences of Fast Food Sales Growth, Mark D. Jekanowski, January-April 1999

Everyone eats Fast Food even knowing that it is not healthy for them. Reasons are because of speed, convenience and price. However, fast food has many hidden costs, including the high price of bad health. Not to mention the fact that for such cheap food, you're actually being overcharged by a big amount. So the real reason is not price, but convenience. You can get much cheaper food by cooking for yourself, but you are not always at home to do the cooking, or you do not always feel like cooking. http://www.bargainist.com/deals/2007/09/12-cheap-alternatives-to-fast-food/ POSTED ON 09/07/2007

Now People want quick and convenient meals they do not want to spend a lot of time preparing meals, traveling to pick up meals or waiting for meals in restaurants. That result, consumers rely on fast food. Knowing this fast food providers are coming up with new ways to market their products that save time for consumers. The rapid rate at which the fast food industry continues to add outlets is as much a reflection of consumer demand for convenience as it is a reflection of demand for fast food itself. Expanding the number of outlets increases accessibility, thus making it more convenient for consumers to purchase fast food. Rising incomes, longer workdays, and a growing tendency for both spouses to hold full-time jobs are widely credited. This trend rise in a way from home expenditures to fast food especially benefits from these trends. The fast food industry focuses heavily on rapid consumer turnover, speed of service, and take-out sales. Most fast food chains emphasize convenience and low prices by offering a narrow range of menu items. Ref:http://www.ers.usda.gov/publications/foodreview/jan1999/frjan99b.pdf , Causes and Consequences of Fast Food Sales Growth, Mark D. Jekanowski, January-April 1999

There is a need to conquered Sales because it is a beast., it is the reason why "location, location, location" is so true in site selection.

Ref:http://en.allexperts.com/q/Running-Restaurant-2285/2008/8/key-success-factors-fast.htm In the Fast food industry, the critical success factors are: Location, Menu selection, Advertising, Value, and Operating systems. Ref:http://www.smartcompany.com.au/Blog/Marcia-Griffin-Blog/20080902-Critical-success-factors.html(Critical success factors ,Wednesday, 3 September 2008 ,By Marcia Griffin)

As we talk about the location theory, there are 16 classic location factors: availability of raw materials, transportation, market, energy, labor, capital, technical knowledge, scale, agglomeration, demand, competition, government influence, tradition, random factors, environmental factors, and perception. The cover these factors is an important varies by industry or individual company management.

Ref:http://www.dailyspeculations.com/Connections/connections_location.html(Victor Niederhoffer & Laurel Kenner) 1/5/4

Today, the Site location matters a lot. A poor location decision can have much greater and more immediate effects on operating efficiencies and cash flow

Ref:http://articles.directorym.net/7_Keys_to_Facility_Location-a934546.html, 7 Keys to Facility Location, John T. Mentzer, 2008

The fast-food...
tracking img