College papers academic writing service


What forces are driving change in the fast food industry

We just poured over 2016 forecasts from more than a dozen restaurant experts and research firms and concluded which of the upcoming trends will have the greatest impact on our side of the industry.

  1. In the Five Forces analysis model, this external factor contributes to the strength of the threat of substitution in the fast food service industry. Fast food restaurants have high human resource costs due to staffing the kitchen, the counter and the cleaning crews - and any increase in wages crunches the bottom line.
  2. Competitive rivalry or competition — Strong Force Bargaining power of buyers or customers — Strong Force Bargaining power of suppliers — Weak Force Threat of substitutes or substitution — Strong Force Threat of new entrants or new entry — Moderate Force Recommendations. This weakness is partly based on the lack of strong regional and global alliances among suppliers.
  3. Moreover, the availability of substitutes is relevant in this external analysis. Moreover, substitutes are competitive in terms of quality and customer satisfaction high performance-to-cost ratio.
  4. In other words, figuring out creative ways to employ fewer people, primarily by leveraging technology. Healthier options Franchise concepts based on healthier ingredients and meal choices continue to pop up, and the old stalwarts continue to add healthy options to their menus.
  5. What is the local labor force like?

In some cases, these trends simply indicate a tipping point for matters that have been percolating for several years. Other trends are new, the result of an industry that is adapting quickly to its constantly changing customer base. All of them, though, are sure to leave their mark on quick-service and fast-casual restaurants in 2016.

  • Also, consumers can cook their food at home;
  • This weakness is partly based on the lack of strong regional and global alliances among suppliers.

Real food One trend made its way onto more forecasts than any other: Chefs and operators are also making more foods in-house to improve transparency and bring more control over flavor. Chef-driven fast casuals The inspiration of talented, well-trained, and often fine-dining chefs has always been part of the fast-causal restaurant movement. And those are just the well-known names; dozens of other chefs across the country opened fast casuals or announced their intentions to do so in the coming years.

9 Fast Food Trends for 2016

The chef-driven fast-casual movement has grown so strong that it came in at No. Micro cuisines For a long time, quick service focused on national trends like burgers and chicken. Then there was the focus on regional flavors and even some ethnic foods, including Mexican and Chinese.

McDonald’s Five Forces Analysis (Porter’s Model) & Recommendations

But in 2016, expect to see more hyper regional items on the menu. Part of that is driven by food ingredients that come from particular local areas—an offshoot of the locovore movement that has been trending in recent years—as well as popular local menu items, like green chile in New Mexico or giardiniera in Chicago.

Some companies, like Shake Shack and Smashburger, are already doing that to a degree. At the same time, operators can try these regional items at their units elsewhere in the country as a way to extend their menus, either for a full or limited time.

Fast Food Industry Analysis 2018 - Cost & Trends

Several forecasters project Hawaiian food as a trend. This is especially the case with poke, a raw fish salad that often is served in a bowl.

Quick-service poke is big in California and has started to move east.

  • How is the industry responding to these challenges?
  • Effective use of technology.

Mindful dining There are a wide range of trends—sustainability, reducing food waste, and humane treatment of animals, among them—that all can be summed up by a macro trend sweeping through the limited-service restaurant space: The Millennial generation is far more apt to gravitate to these attributes than their elders, Culinary Visions reports, and a number of operators have taken notice. For instance, even big chains are moving to source eggs from chickens that are not kept in restrictive cages.

Giving back—to charity and communities—is also considered important to that generation, Freeman says.

  • Competitive rivalry or competition — Strong Force Bargaining power of buyers or customers — Strong Force Bargaining power of suppliers — Weak Force Threat of substitutes or substitution — Strong Force Threat of new entrants or new entry — Moderate Force Recommendations;
  • Chefs and operators are also making more foods in-house to improve transparency and bring more control over flavor;
  • Fast food franchises benefit from consistent delivery of both food and experience - look for franchise opportunities with a proven and cost effective system;
  • This is especially the case with poke, a raw fish salad that often is served in a bowl;
  • Figure out what will work in your community;
  • Several forecasters project Hawaiian food as a trend.