Industry Analysis on Fast Food Essay

1. A few of the chief frugal and business characteristics of the global tumultuous- food industry atomic number 18 as follows In the marketplace harvest-home rate the expected food sales is predicted to increase by $208 zillion by 2020 with us already being at $800 billion by 2001. Under first appearance barriers for the fast-food industry the main concerns would be the entry costs, location, capital cost, and licensing. For a business to aim success they must have the right location.Under exit barriers there are land leasing, come leases, capital cost. 2. Some of the driving forces include the quality of the food, price of the food, and the nutritional value. Some of the consumers that are playing an important role in fast food are women employed outside the home, two-earned households, higher income, and smaller coat of the family. Increased food spending driven by population growth is just one way consumers will shape the future of the US food system. 3. Five forces a.R ivalry among competitors- in the fast-food industry its who lot get the food out the fastest. b. New entrants- the competition is increasing payable to not having some entry barriers. c. Substitute harvest-times- there are some(prenominal) choices in the fast food industry leaving consumers with so umpteen different choices. Therefore each individual fast-food restaurants needs to differentiate their product so people will want to come back for their product. For font what is it about Popeyes chicken vs. KFCs? d.Suppliers and buyers- in the fast-food industry if the buyers arent satisfied with the suppliers than they can easily switch their suppliers leaving the suppliers with a disadvantage. in any case if suppliers cannot offer something unique that only restaurants can get form them, wherefore they have no power to keep that restaurants business. 4. A few factors that are critical to success in the fast-food industry are timeliness of the food, quality of the food, quant ity of the food, and the pricing of the food. 5.Its attractive in they way that with the fast paced growth of the fast-food industry, there are so many restaurants entering because there are minimal entry barriers. Anyone who wants to open a restaurant can. Also, there are very low switching costs, which make restaurants look very appealing to big corporations. It can be homely because more and more consumers are willing to spend more bullion on better quality food rather than the quantity of food at a fast-food restaurant. Also senior citizens and immigrants are more belike to cook at home and move away from the trend.