Competition In Fast Food Industry

Fast food is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store with low quality preparation and served to the customer in a packaged form for take-out/take-away. Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants (also known as quick service restaurants). Franchise operations which are part of restaurant chains have standardized foodstuffs shipped to each restaurant from central locations. The capital requirements involved in opening up a fast food restaurant are relatively low. Restaurants with much higher sit-in ratios, where customers

Fast food industry competition

According to the article in The Express Tribune written by Shahram Haq, competition in fast food industry helps middle class contribute to growth. In the beginning, the concept was only welcomed by the higher-income segments as prices made the food unaffordable for middle or lower income classes. Introduction of multinational food franchises, initiated in the 1990s, was in the midst of non-existent local fast food restaurants. Today, the trend is spreading fast and the industry experts believe this to be just the beginning for the flourishing industry.

However, the industry has evolved since then as the restaurants now offer promotions at various hours of the day and on different products to open doors for the middle-class and low-income class. Presently along with the high-end deals, franchises are focusing on medium- and low-end deals which target the middle- and lower- income classes as they constitute a much larger portion of the population of 180 million. Marketing is the other key for franchises to grow their respective businesses. Previously amid insignificant competition, the restaurants did not really latch on to the importance of marketing, but it is completely inverse in the present scenario as competition has grown and major international

“McDonald’s make fast food and it works like a robot. No feeling, it is only about functionality and money. Max employees on the other hand, they work more as humans, with ups and downs but with more feeling in the food”, M1b said.

Trends in fast food industry

Nowadays people have grown up with various ethnic styles, but everyone looking for a new things and it became trends. An expert says that many trends expected to affect in fast food industry that can give impact to quick service restaurant which is ingredient transparency (Wolf, 2014).

“Customers are more interested in what they’re eating and where it comes from,” says Annika Stensson, the NRA’s senior manager of research communications. “They want to know it’s being grown responsibly.”

“Customers’ definition of value is fresh ingredients, quality food, and good-tasting food at reasonable prices. But fresh ingredients is No. 1,” Riggs says. “Customers want to see that the ingredients and the food are not just holding