Environmental Analysis- Fast-Casual Dining Industry (This is NOT Fast Food)
The Fast-Casual Dining Industry is one of the most important industries that people are putting their time and money in. It has been growth well in the past couple year. (1) According to Technnomic, “The industry was worth $47 billion in 2016, and although it should close 2017, with a 10 percent increase, hitting $52 billion, that's a drop in growth from past years. The good news, however, is that the industry is still leading the restaurant sector when it comes to growth.” There are many different factors that effect to the Fast-Casual Dining Industry. However, in this paper, I want to focus on Sociocultural, Technological and Economic, that effect the most to this
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For instance, Yelp is an app that we can access to review any restaurants and food that we want to eat. It does matter if that is American food or Asian food. Everything is shared and everyone can see it. In addition, (2) according to Carol Tice, at the Domino’s Pizza started using Mobile Ordering app to order the food and at some Airport restaurants, they started using Presto- an offers tableside self-checkout and more- to cut off the wait time for people who want to pay for their meal and leave. Another example of technology has a big impact on the fast-casual dining industry that I had a chance to enjoy. Kula sushi in Austin is a place that people can order their own food on the tablet and the food will be deliver on the top belt. Another option is you can pick the food, which goes, around the restaurant on a lower belt. Technology devices not only help us to review the food that we want to it, but also help us to getting our meal easily without waiting for waiter/waitress like at Kula …show more content…
Due to the compete among the restaurants, the high fee and complex process in order to get the food certificated and regulation, it makes the new entrants wait for a while before start their new business. As this time, there are already uncountable restaurants in this industry with various type of food from America foods like Pizza, Burger or Asian cuisine comes from Korea, Vietnam or China. Unless you know for sure that your recipes are new and have unique taste that no one had have it before. Otherwise, I don’t think the new entrants can enter in this competitive
In the book Fast Food Nation: The Darks Side of the All-American Meal, Eric Schlosser claims that fast food impacts more than our eating habits, it impacts “…our economy, our culture, and our values”(3) . At the heart of Schlosser’s argument is that the entrepreneurial spirit —defined by hard work, innovation, and taking extraordinary risks— has nothing to do with the rise of the fast food empire and all its subsidiaries. In reality, the success of a fast food restaurant is contingent upon obtaining taxpayer money, avoiding government restraints, and indoctrinating its target audience from as young as possible. The resulting affordable, good-tasting, nostalgic, and addictive foods make it difficult to be reasonable about food choices, specifically in a fast food industry chiefly built by greedy executives.
Despite a saturated market, Chick-fil-A innovated its menu and service. The fast-food company was among the first to provide a mobile app and reward program, enhancing convenience and personalization. Fast food standards are strong in its play areas and table service restaurants. A thorough review of Japan's economic, cultural, and infrastructural environment led Chick-fil-A to examine its potential for worldwide expansion. The economy of Japan is strong in terms of nominal GDP and also has a strong economy that fosters corporate growth and innovation.
From a study completed by Chicago-based Research International USA completed a study called “Fast Food Nation 2008. The panel consisted of 1,000 respondents of ages 16-65 who provided their inputs with an online survey which was conducted between March 13 through 2008. Which was based on results on fast food restaurants like McDonald’s, Burger King, and Wendy’s are gaining popularity even through the economic hardship and recession. Marketing strategy has become more of influence on kids and young American’s. As population grows and the demand increases of fast food restaurants are expanding their stores to capturing more consumers. Fast food chains are also willing to change their menus to continue to gain and retain repeating customers. With each generation that passes, brings fast food chains into more homes and continues impacting lives.
The American life has been transformed by the fast food industry not just changing the American diet but also the culture, workplace, economy, and the landscape. “Today about half of the money used to buy food is spent at restaurants-mainly fast food restaurants.” (Schlosser) This could be due to the fact that about two-thirds of working women are mothers. The impact of fast food on the American culture is transparent when just looking at McDonald’s. McDonald’s has become the world’s most famous brand; the golden arches are more known than the Christian cross. “A survey of American schoolchildren found that 96 percent could identify Ronald McDonald.” (Schlosser) McDonald’s is responsible for 90 percent of new jobs in The United States. The landscape has changed due to the fast food ...
The fast-food industry accounts for 40 percent of people employed in the restaurant business (of all types), of an approximate 6 million workers. The author gives evidence to show how fast-food highly depends on teenagers to work because the statistics are, about 70 percent of the workers are twenty years old and under, this was most likely their first type of job. This industry is mainly part time employee’s whose average work week consists of 29.5 hours. The rates of staff changes are quite regular, only about more than 50 percent stay for longer than a year. These jobs are mainly filled by lower
begun to accept the words of Aunt Lydia, or more likely, is she silent to
Customers buy when they feel it is necessary giving them the upper hand on the industry. Bargaining power of suppliers: In the quick- service restaurant, the suppliers vary. They really do not rely distributors as large restaurants do. Threat of new substitutes: The restaurant industry is segmented into many parts: full service restaurants ($120 billion); quick- service restaurants ($110 billion); away-from-home managed institutions, examples: food services for schools and hospitals ($21 billion); and other food industries ($106 billion). (Marshall Jones, 1999). Rivalry among competi...
Digital ordering is growing 300 percent faster than in-house dining, so restaurateurs must decide whether it makes long-term or short-term sense to get 16-percent smaller profits for an increasingly large percentage of their total
Fast food outlets actually have been existed from millennia in China, India and ancient Europe. In the past, many people cannot afford to have a kitchen and this becomes the main reason they buy their food in fast food outlets (Reverse Your Age, 2013). The perception of fast food started to change in twentieth century. The first company that change the culture and perception of fast food was McDonald’s, followed by their future competitors such as KFC, Burger King, Wendy’s, Taco Bell, Pizza Hut and Subway. As they get a good appreciation from the customers followed by the impact of the globalisation, almost all of the fast food companies have been expanded their restaurant chain in many nations (Wojtek, 2013). Nowadays, with our busy life schedule and the increasing trend where women entering workforce promote an opportunity for the fast food industry to grow bigger. We can see the significant growth from the fast food industry as the industry itself has been generated over $160 billion in 2012 compared to their revenue in 1970 which only around $6 billion (Franchise Help, n.d.). With this significant growth, it does not mean that every company in this industry are successful. Some company has to closed some of their stores due to the lack of environmental research and preparation in entering a new country which commonly lead to the poor selling rate. The deeper explanation and points that is mention below will be also represent as the industry current state.
· increase in the fast-casual segment that includes restaurants that offer deli sandwiches and more upscale meals with more comfortable surroundings but faster
It will provide entrepreneurs with a competitive edge that will prove invaluable in helping them seek the opportunity in this unexplored area of business. Through this research project one can study the opportunities and potential for Fast Food Restaurant Services in India. Since not too much of research is carried on in this area in India, there is a huge scope for this market and it could be useful for any budding entrepreneur who is interested in this industry.
There has been exponential rise in the number of eateries in most of the towns worldwide. This is partly brought about by the ballooning urban population, as well as the emergence of working middle class population who find themselves tied up by work in the cities they reside.
Consumption habits are very important factors for international marketing strategy for fast food chains. Culture is also involved in here again, though these days’ customers are always looking forward to something new in the service and products. Then again, taste of customers is changing as they are transforming towards dining in if the image of fast food is not healthy. Health conscious customer are quick to abandon fast food, they find the fast food very harmful for lungs, heart and blood conditions.
It has seen this with how “Technology is enabling researchers to make new discoveries that are changing our understanding of nutrition.” (Agrawal, AJ) Then again, with how technology changes “As awareness around these issues continue to grow, innovative entrepreneurs will identify solutions. Froozer is one company that is working to innovate food production and mitigate food waste.” (Agrawal, AJ) And the most popular is with how “Social media and smartphones have connected consumers to information about the harmful effects of certain ingredients, the source of products, and how things are made.” (Agrawal, AJ) Plus stuff we are working on now that will become huge in the future, such as “Lab-grown foods and smart tools for personalized healthy nutrition are already a reality and they will be further developing” (Belan, Kate). “As conscious food consumption grows, numerous food-related platforms, apps and tools will appear massively” (Belan, Kate). Bringing the upcoming of how “Bars and restaurants will use technology to provide customers with data-based fast services or immersive emotional experiences beyond the taste of food and drinks” (Belan, Kate). Plus, “The ‘Internet of Things’—app-connected smart devices—will find their places in the kitchen too.” (Belan, Kate) “Food 3D-printers and nanopackaging may revolutionize the way the dishes are cooked and how the
In America, many are not aware of the inequalities that exist in the Food Service. The food service sector has at least 125,951 companies and approximately 12 million employees with almost 7 million foreigners. This sector includes individually owned restaurants, mid-priced chains, quick service (fast food), hotels, and beverage establishments. Food service plays a major role in institutional establishments like schools, hospitals, prisons and meals on wheels. They cater to the tastes of their particular customers and are often leaders of food innovation. In the food service, we find: bartenders, wait staff, hosts, busboys, chefs, cooks, managers, and dishwashers .The food service workers perform a variety of customer service, food preparation and cleaning tasks, all that which are very important to keep a business running. More concerning , some of the major working conditions that foodservice workers face with daily is no health benefits and significantly low wages. These employees working in the food industry make it possible for millions of people to enjoy food in restaurants but are not being treated or appreciated fairly.