The term fast food relates to the food that can be prepared very quickly. Most of this popular type of food is availed in packaged forms called take away. The fast food industry has its roots in the food for sale stand that were part and parcel of ancient roman and East Indian societies.
The fast food industry also known as quick service restaurants, has been serving up tasty morsels for as long as who lives in cities.
The modern system of fast food franchising is believed to have started in the mid 1930’s when Howard Johnson on franchised his second location to a friend as a means to expand operations during the great depressions.
As cars become commonplace the drive thru concept brought explosive growth to the idea of food-on-the-go.
Fast food was added to the Merion websites dictionary in 1951 and U.S. fast food companies are now franchised in over 100 countries..
In the U.S. alone there are over 200000 restaurants locations. Revenue has grown from $6 billion in 1970 to $160 billion in last year and 8.6% annualized rate.
Fast food franchises focus on high volume low cost and high speed product, frequently food is preheated or precooked and served to go through many locations also offer seating for-on -sale consumption. There have been challenges for the fast food industry in recent years that have been pressuring profit margins. The industries as a whole proven robust enough to withstand these challenges through some players have done better than others.
The global fast food manufacturers like MC D, KFC, and dominos, have already occupied a firm position in India.
You May Also Find These Documents Helpful
-
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).…
- 1962 Words
- 8 Pages
Best Essays -
Fast food is expected to rapidly gain market in Asia Pacific and Europe due to its affordability, easy accessibility and huge investment in promotional activities by leading players of the industry. Currently, burgers constitute the largest fast food segment and are expected to maintain their escalation in the upcoming years. Some of the key participants in fast food industry include McDonald, KFC, Bugger King, Pizza Hut and Dominos among others. In addition, a large number of local fast food vendors are present worldwide.…
- 1324 Words
- 6 Pages
Good Essays -
Fast food restaurants represent one of the largest segments of the food industry with over 200,000 restaurants and $120 billion in sales in the U.S. alone. Fast food restaurants, also known as quick service restaurants, are noted for their short food preparation time. Some of the largest players in this category include international giants like McDonald 's and Yum! Brands, national chains such as Wendy 's and Burger King and regional players like Jack In The Box and Sonic. Firms within the fast food industry fall under the market structure of perfect competition. Market structure is a classification system for the key traits of a market. The characteristics of perfect competition include: large number of buyers and sellers, easy entry to and exit from the market, homogeneous products, and the firm is the price taker. Many fast food franchises fit all or most of these characteristics. Competition within the industry as well as market supply and demand conditions set the price of products sold. For example, when Wendy 's introduced its $.99 value menu, several other companies implemented the same type of changes to their menu. The demand for items on Wendy 's value menu was so high because they were offering the same products as always, but at a discounted price. This change in market demand basically forced Wendy 's competition to lower prices of items on their menu, in order to maintain their share of the market. The previous example illustrates the elasticity of the fast food industry. Supply and demand set the equilibrium price for goods offered by franchises within the industry. Competitors of Wendy 's must accept the prices established by the consumer demand for the value menu. If consumers didn 't respond so positively to Wendy 's changes, other firms wouldn 't have had to adjust prices. On the flip side of this concept, there is no need for franchises to further…
- 1330 Words
- 6 Pages
Powerful Essays -
Its safe to say when we think of fast food, McDonalds certainly comes to mind. That is because the company has made a name for itself through its infamous golden arch and signature burgers. Still after 70 years, McDonalds is one of the largest fast food chain restaurants in the US and has growing worldwide recognition. They have reserved their title based on their huge customer base and increasing sales. The food giant has experienced increases of up to 80 percent of net profit in a year and 10 percent in revenues in a year. Over the past several years, the launch of the “Dollar Menu”, introduction of McCafe, and primarily, continuation of low cost food are all the ways in which McDonald’s continually gains and maintains their customers.…
- 886 Words
- 4 Pages
Good Essays -
Fast food restaurants started to change farming and food distribution as early as the 1950’s. Dick and Mac McDonald were the first to revolutionize the drive up restaurants when they redeveloped their BBQ joint into the type of McDonalds we know today that serves burgers and fries.(Ganzel) Others soon caught on to what the McDonalds brothers had going, and fast food restaurants started opening up everywhere. The first Kentucky Fried Chicken opened in 1952. By 1954 Burger King opened and became the second largest burger franchise. Later, in 1958 the first Pizza Hut opened closely followed by the first Domino’s Pizza in 1960.(Ganzel) Customers loved how quickly the food was prepared, how convenient it was to not even have to get out of your…
- 291 Words
- 2 Pages
Satisfactory Essays -
Many Detroiters love fast food, but consumers from around the globe love it just as much as any Detroiter. Restaurants like McDonald’s have broadened across the world, and surfacing markets are one of the fastest growing areas in the fast food industry. However, the fast food industry still has its’ challenges, particularly in the United States. From economic recession and changing views about health and rising food costs, many fast food chains have been experiencing some serious issues internally and externally.…
- 1189 Words
- 5 Pages
Good Essays -
The term “Fast food” is given to any type of food provider that, naturally, can be prepared and served quickly to accommodate the consumer. While sounding like a great facet to a fast paced life style it comes with many compromises; unfortunately that all comes at the consumer’s expense. In order to achieve quick service nearly all of the food served at fast food joints is…
- 2241 Words
- 6 Pages
Powerful Essays -
The fast food industry experienced a boom in the 1950s, with the incorporation of new marketing strategies, production techniques, pre-preparation of food and with increased popularity. Fast food businesses became popular dining locations and due to their menus, slogans and advertising strategies became popular household names such as White Castle, McDonald’s, Wendy’s and so on.…
- 173 Words
- 1 Page
Good Essays -
Fast food – also known as “quick service restaurant” emphasize speed of service. A specific type of restaurant characterized both by its fast food cuisine and by minimal table service.…
- 450 Words
- 2 Pages
Good Essays -
According to Research and Markets Report, the global fast food market has generated revenue of $252.9 billion in 2011, with a compound annual growth rate (CAGR) of 5.2% between 2007 and 2011.…
- 926 Words
- 4 Pages
Satisfactory Essays -
b. Fast food places like McDonalds, Burger King, Jack-in-the-box, Wendy’s, Whataburger, etc., are all considered fast food restaurants.…
- 938 Words
- 4 Pages
Better Essays -
The second most obvious reason is because fast food is, well, fast. There is very low or no waiting period. Food is usually prepared in matter of minutes and you can be on your way.…
- 732 Words
- 2 Pages
Good Essays -
The fast food culture emerged as early as the 19th century. During the Industrial Revolution, a large workforce was required to work for 10 to 12 hours a day. With so much work to be done, fast food was the idea of a quick and easy lunch.…
- 1933 Words
- 8 Pages
Powerful Essays -
Fast food is the term given to food that is prepared and served very quickly, first popularized in the 1950s in the United States. Fast food restaurants are traditionally separated by their ability to serve food via a drive-through.…
- 640 Words
- 3 Pages
Good Essays -
Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away.…
- 1500 Words
- 6 Pages
Powerful Essays