Evolution of Fast Food Fast food companies have eradicated competition throughout history in the restaurant industry. The practices used to eradicate competition such as using unhealthy food to make a profit have been reported unethical by Americans but tend to be desired to the American society. According to the American Franchise Corporation, certified by TrustArc, fast food companies generate $570 billion annually in the United States ("Fast Food Industry Analysis"). These statistics continue to inflate as more and more fast food companies become ubiquitous. As a result, fast food companies get richer, while people become contracted with life altering health effects.
Another factor that might affect Thompson’s strategy was consumer preference in 2012. If an individual has looked at McDonald’s menu there are not that many healthy products that they offer. This often deterred consumers from buying their products due to the health issues with their foods. Another key factor that Thomson looked at was the pricing of his food. He wanted a restaurant where consumers could afford the products on the menu and if one thinks back to 2012 the unemployment rate was very high meaning that families did not have much disposable income for nice restaurants.
The big question is, “Can Chick-Fil-A continue to provide exceptional customer service and sustain the level of growth it enjoys?” So far, the answer to that question is yes. The answer is yes because of the amount of innovation that Chick-Fil-A has shown as a company. By not being so consumed with making the largest possible profits, Chick-Fil-A has given themselves the opportunity to provide extra training for employees and run promotions that keep up their customer service standard. If Chick-Fil-A does not waver from their standard and continues to hire well, they will have success.
With the increase in health awareness across the globe it has resulted in an increase in demand for nutritious and trans-fat free products (Tarkan, 2015). Growing the company’s baby food market can present another opportunity KHC can strategize to remain an industry leader. With the increase in incomes and changing lifestyle, the baby food market is growing around the globe. The global baby food market is expected to grow at a CAGR of 8% till 2019 (Markets, 2017). KHC offers a wide range of baby food and instant formula products and can benefit from the growth if they focus on this
Additionally, Chipotle should develop Shophouse Southeast Asia Kitchen’s menu and interior to attract more customers. expand the location. Consequently, their revenue and net income will increase gradually. * Marketing In stead of only relying on word – of – mouth technique, they should create more TV shows like “Scarecrow” and “Farmed and Dangerous” and held “cultivate festival” not only to build the relationship between customers and Chipotle but also to increase customer’s awareness of the brand and their “Food With Integrity”
According to Centres of Disease Control and Prevention more than one-third (34.9% or 76.6 million) of U.S adults are obese. In this fast moving world, may it be people from the corporate world or even students no one really have the time to wait to get their food done. So the only way is that they buy themselves fast food. However, awareness is being created these days about the effects of fast food people are also starting to blame fast food for increasing rate of obesity.
Great summary and you are bringing up a key point that is a culture. With rapid globalization, it is relatively easy for anyone to experience other culture food or other items like appeal etc. However for a long-term success, it is necessary for Chipotle to identify strategic options and evaluate the business and cultural environment against home country. The analysis will help identify the need and adjust any factors that need to be considered to be competitiveness against local and foreign establishments. The Chipotle strategy options should include testing of the environment, if the foreign market is compatible with the home market.
Economic Factors • Food takeaway is a cyclical market, so the prosperity of this activity depends on which state of the economical cycle the country is. Actually, UK has already recovered from the 2007 crisis and its Real GDP s growing at a 0.5% rate. • Relatively high tax structure. Social Factors • The British society is characterized by a busy lifestyle and need a quick and convenient takeaway food service. • Population is more concerned on health issues and many of them follow newly updated healthy food trends.
Similarly, the hectic lifestyles of individuals in some town and city increase the demand for appropriate fast food. This state presents the prospect for Arby’s to grow in those areas. However, advanced health consciousness might reduce demand but in the case of Arby’s it might not really affect them as they do provide healthy sandwiches and many other products, so this basically act as an advantage. Even so, the business can further keep improving the product quality. This side of the PEST analysis demonstrate that Arby’s can increase its business performance built on the effects of socio-cultural external factors.
The most significant competitors living in two spaces; fast food and quick service casual dining. Some top competitors for Chipotle are Taco Bell (fast food), Subway (healthy to go), Panera (healthy casual), Chili’s (casual dine in), and Qdoba (healthy casual
The article regarding Chipotle was a very interesting review, being that it is also highlighted in the ascribed text for the Business course. As it applies to the chapter, I found it very hard to narrow it down to only just the topic on microeconomics and the forces behind supply and demand. Although, the reason for the new philosophy will not only facilitates a better economy as the country rises out of the recession era, but it will produce a more educated pool of restaurant employees. Incidentally, will usher in a new way of society’s appreciation for what use to be a meager form of employment.
The original material of food cost of Chipotle operating costs is larger than other fast food restaurants, although this is a measure they have to implement to ensure freshness and health of food they sold, this is the reason for their high food prices. Even if the majority of customers are willing to pay for the higher cost of health food, Chipotle still should find out some effective ways to reduce the cost of their food in the future. Here are some suggestions: firstly,negotiate with the original suppliers to establish a long-term and stronger cooperative relationship to achieve a purpose of a certain reduction in the purchase price. Secondly, take advantage of suppliers’ promotional discounts. Attempt to make communications and collaborations
Wal-Mart have the cheapest and lowest price that everyone can afford, so when the groceries are scarce at home most often Wal-Mart will be the next stop. People love shopping at Wal-Mart since it is more convenient than any other store around. Wal-Mart plays a tremendous growing role in America’s economy. More than 100 million customers visit Wal-Mart every week,
Sondra Simpson’s article “Chipotle Mexican Grill Inc.: Strategy with a Higher Mission or Farmed and Dangerous?” alludes to portraying a controversy involving the popular Mexican fast food chain Chipotle and the agricultural industry, but it reads more as a testament to the restaurant’s environmental and marketing achievements. The introductory paragraphs lead us right into a brief explanation of the issue at hand, as well as Chipotle’s intentions and opposition. Simpson hooks her readers with inciting blog titles illustrating the overall feelings of Chipotle’s offended adversaries, such as, “Boycott Chipotle: My Farm is Not Dangerous” and “Chipotle Unnecessarily Tears Down Agriculture to Build a Brand” (qtd by Simpson p 38). These blog posts describe the agricultural industry’s reaction to Chipotle’s latest attempt at spreading their corporate message through a series of webisodes titled “Farmed and Dangerous.”
Chipotle is the best restaurant because of the food. All of the food is good something. It really is a great place to eat. It is worth going to eat there. There's a Chipotle everywhere.