Industry Analysis of the Fast Food Industry
1. A few of the chief economic and business characteristics of the global fast-food industry
are as follows: In the market growth rate the expected food sales is predicted to increase by
$208 billion by 2020 with us already being at $800 billion by 2001. Under entry barriers
for the fast-food industry the main concerns would be the entry costs, location, capital cost,
and licensing. For a business to have success they must have the right location. Under exit
barriers there are land leasing, building 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
size 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. Rivalry among competitors- in the fast-food industry its who can get the food out the
fastest.
b. New entrants- the competition is increasing due to not having many entry barriers.
c. Substitute products- there are many choices in the fast food industry leaving consumers
with so many different choices. Therefore each individual fast-food restaurants needs to
differentiate their product so people will want to come back for their product. For example
what is it about Popeyes chicken vs. KFCs?
d. Suppliers and buyers- in the fast-food industry if the buyers arent satisfied with the
