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Strategies in a fast food restaurant
Competition between fast food restaurants
Success of fast food restaurants
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Restaurants franchising in Nigeria
Notwithstanding the challenges of carrying out business in Nigeria, the fast food restaurants sector has been increasing rapidly. Like any other industry sector in Nigeria, the long-term potential of the fast food restaurants stands out in a global context, due to the sizeable population of Nigeria, which currently stands at around 190 million. Restaurant franchising face a couple of challenges that are similar to other sectors, which include the cost of land and building, electricity, experienced laborer’s and importing inputs, but there are some challenges that are unique to fast food restaurants which include making sure there is a balance between the local dishes and the popular international dishes,
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Some on the list that made up the 25% are Big Treat, The Kitchen, Charlies, Kas Chicken etc which are family owned. Nigerians according to Olumide (2007) embraced the MR. BIGGS concept wholeheartedly and this has made them open branches in different parts of the country. MR. BIGGS bought into the theme restaurant concept by providing good ambiance and a relaxing family atmosphere. They went a step further to combine cultural and local food in their menu especially, jollof rice, moin-moin, salad and chicken, pounded–yam, Eba among others, unlike other operators MR. BIGGS had put into consideration the cultural mores of the country hence, the success story recorded. Unarguably, Lagos, Port Harcourt and to a degree, Abuja are currently the prime targets of these emerging markets. It is difficult to escape noticing the colorful edifices and …show more content…
One is probably just around the comer of your street. The list is endless; Mr. Briggs, Tantalizers, Tastee Fried Chicken (TFC), Sweet Sensation, Big Treat, Favorites, Kas Chicken, Frechies, Chiquita, Gina’s Fast Food Delite, Kigstine Jo Snacks & Burger, Friends, The Kitchen, Charlies and new entrants like Quarter Jack in Ogunlana Drive, Surulere, The Triangle along Kodesho Street, Ikeja, Trendy’s and Domino Dina both in Sabo, Yaba, Choppies in ojuelegba among others too numerous to mention. Nworah (2006) argued that due to the competitive nature of the market, many of the outlets have started to blend their menus with African cuisines like Pounded Yam, Amala, Moin Moin, Eba, Semovita, Fufu etc. Other unexplored areas are in core Nigerian ‘fast food’ and snacks (possibly covering the over 300 varied ethnic nationalities within Nigeria). These include Boil (roasted plantain) & Epa (ground-nuts), Isu Sisun (roasted yam) & Epo (palm oil) with dry pepper, Dundun (fried yam), fried plantain (Dodo), boiled and roasted com, Eko. Ibru (2007:10) posits that these records have placed Nigeria in a vantage position with its economic potential worth $220 million which only local franchisors are enjoying
After a long day in school and studying, every student needs a night off to just relax and enjoy a meal at a restaurant. In this modern time, some aspects of a restaurant can be the deciding choice. Many choose their restaurant of choice based on either those they are with, their personal, cultural appetite, their routine eating habits or their mood. Some of these preferences are similar yet others are the deciding differences. Two common franchise restaurants that pose differences are Applebee’s and Olive Garden. These two restaurants present their differences in environmental and food options causing a choice between them.
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...
Editorial. Nations Restaurant News 11 Nov. 2005: n. pag. MasterFILE Premier. Web. 5 Mar. 2013.
The purpose of this paper is to introduce you to the fast food industry, how it is everywhere in the United States and increasingly spreading globally. The majority of the fast food restaurants in the United States are dominated by hamburger fast food restaurants. Amongst the burger segment, McDonald’s is the number one leader in the burger industry, followed by Burger King, and Wendy’s respectively (Oches, 2011).
Franchises are very successful these days because they have a proven track record. According to document E “The rate for franchise owners are higher than independent business. Nine out of ten reported profit in 2002.” This shows that franchises are making more money in comparison with self-owned companies and that is one of the reasons why there are so many franchises. Also in the same document the author claims that “Approximately one out of every 12 U.S. retail business establishment is a franchise owned business.” This is an example of the popularity of franchises amongst businessmen. It points out that every day there are more people starting a franchise and making profit, which encourages others to start a franchise. Franchises are a good investment in which there is more money and it has more fame and reputation in th...
KFC is one of the most popular fast-food restaurant chains by the Yum! Brands and fried chicken is what the company specializes. KFC was founded by Harland Sanders, which was later known as Colonel Sanders. Moreover, KFC was one of the first fast-food restaurant chains to expand internationally, including the opening outlets in Beijing, China, in November 1987 (KFC Website, 2013). The fact that KFC was the first Western fast food company in China makes it very challenging to satisfy the Chinese market. Trying to sell the same products or services is a typical approach to most foreign expansion for franchise businesses (Bell, 2011). However, one-size fits all approach is not what KFC chooses to apply for their company. According to Shelman, the writer of the case study regarding KFC’s Explosive Growth in China, key success for KFC China is to change the menu to suit Chinese tastes and style of eating (Starvish, 2011). “One of the lessons I take away from this case is that to ...
... conclusion, to compete with the intense competition in today’s fast-food market, KFC China differentiates the company by being innovative. Three significant innovative strategies are localizing the menu, understanding the Chinese culture, and hiring local management. KFC demonstrates that one size fits all approach in the global market does not always work. Many typical Western approach to foreign expansion is to deliver the same products or services as their original establishment. For instance, Domino’s Pizza, an American restaurant chain, nearly failed in Australia due to the underestimation of the need to adapt their offerings to the local tastes. KFC China offers important lessons for global firms. It is essential to know that to what extend the company should keep the existing business model in emerging markets and to what extend it should be thrown away.
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.
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...
Now days , the customers so awareness of the fast food industries and its ingredients like no effected, no allergy, fresh, pure and others food which will be available on time in related area. Such sort of features are provided by burger fuel and the government policy of china is also welcoming to the foreign investor. It means the government policy is favorable for the foreign investor and franchisor. For instance, the competitors like burger kings, KFC are there in china. Therefore the burger fuel also enter into the Chinese market thorough the franchise and local partnership. Franchising is a rapidly increasing model for business expansion in the retail sectors like fast food industry and it is going to be making their own market in growing service sector of the Chinese economy in the years to come. The growth of modern retail trade has been the driving force behind it. The old age population are very low in china but the active population is very high at the age group 25-54 years is 47.2% (male 327,130,324/ female 313,029,536). Therefore, the target age group is18-35 years, employed and those people are eager to eat at outside. The burger fuel is also totally focus to
A fast food restaurant will have to have a good pricing strategy in order to ensure that competition does not push the firm out of business. This will ensure the restaurant remains competitive. For effective management of cash inflows, the management will require to create an environment whereby each item has been priced conspicuously and reflecting the cost of bringing the same to the table as well as the profit margins targeted by the restaurant (Mark 1998).
Nosi, C. & Zanni, L. 2004, "Moving from "typical products" to "food-related services": The Slow Food case as a new business paradigm", British Food Journal, vol. 106, no. 10, pp. 779-792, Proquest Database, <http://search.proquest.com.ezproxy.students.angliss.vic.edu.au/business/docview/225143535/F51762BBA05845F7PQ/9?accountid=49749>
CHANGING PREFRECE depended vastly on the fast food manus. For example we can mention about SALAD. Now salad was never considered as a part of fast food menu. But with the change of taste and preference, fast food chains like Windy, Taco Bell, and McDonald have introduced SALAD into their menus. This preference is not stopping only with salads. In 2002, McDonald’s introduced great tasting new products including premium salads, n salads plus menu; Chicken McNuggets made with white meat; Fish McDippers; Chicken Selects; and new breakfast offerings like the McGriddle sandwiches. Here as a fast food chain, McDonald did not have to introduce new dishes in their menus but with the impression and image in the market analysis, of increasing demand and chan...
A franchise, by definition is a legal agreement that allows one organization with a product, idea, name or trademark to grant certain rights and information about operating a business to an independent business owner. In return, the business owner (franchisee) pays a fee and royalties to the owner. This one-time fee paid by the franchisee to the franchisor is referred to as a franchise fee. The fee pays for the business concept, rights to use trademarks, management assistance and other services from the franchisor. This fee gives the franchisee the right to open and operate a business using the franchisor’s business ideas and products. A royalty fee is a continuous fee paid by the franchisee to the franchisor. The royalty fee is usually a percentage of the gross revenue earned by the franchisee. The Federal Trade Commission (FTC) is authorized by the United States Congress to regulate the franchise business. The Federal Trade Commission oversees the implementation of the Franchise Trade Rule, which requires that franchisors disclose all pertinent information to potential buyers of a franchise, and monitors the activities of franchisors.
The first step in any business is to think of or create a business idea. Without an idea, one cannot launch their business off the ground. A right direction is needed to create a business with a unique idea. However, other options include franchising or buying an existing business (1). Franchising allows an individual to run stores such as Burger King or McDonalds under the corporate name. It involves taking training classes and a heap of money in order to start a franchise. A Franchisee will have to buy products and services from the corporate entity they are franchising from, which is often required. Buying a franchise is like taking a piece of the pie from the company that is franchising and sharing that pie with everybody else. In addition having a franchise allows one to communicate and in essence become a big part of an added business opportunity (4). Franchising is far from easy to start and maintain for that matter. Starting a franchise involves a l...