Political Factors Affecting The Fast Food Restaurant Industry

Bojangles ' Famous Chicken 'n Biscuit is key player in the Fast Food Restaurants industry. The industry consists of chain restaurants that prepare and serve fast food cuisine. In the next several years, the industry is projected to sustain an annual growth of 1.6% over the next several years. Company-owned stores and franchisee are the two major sources of revenue to the companies. Within the industry, a large segment of restaurants is known as Quick Service Restaurants (QSR). In QSR, consumers strive for taste, price and quality. (IBIS)

There is a wide range of political factors affecting the industry, including labor laws, import and exports costs, minimum wage, and taxation. One key political factors affecting fast food restaurants is the

The general trend is that customers are becoming more health-conscious. Consumers are more into changing their lifestyles through eating organic and avoiding GMO food. Fast food restaurants can benefit from this trend through offering healthy menu option to attract more customers. Another social trend is the increase in the overall diversity within the sociality. In other words, consumers are willing to accept a wide range of options in the menu and only only limit their choice to one cuisine. This trend provides an opportunity for fast food restaurants to innovate and diversify their menus.

There is a little doubt that technology has made major transformations in the fast food restaurants industry. Presence in social media become inevitable tool to build an emotional connection with the customer all over the world. Social media help restaurants with marketing, which allow a smoother international/global expansion. Labor scheduling is another area that technology has impacted. Many are using computer programs that predict the labor demand and allow managers to make efficient staffing decision

Franchising is main reasons that made it easier find a spot within the industry and compete in the market. So, even though the industry comprises major key players that have large market shares in the industry, it is relatively easy to enter the industry. Also, Brand loyalty among fast food restaurants is generally low as consumers can find similar menu items in nearby restaurants. Therefore, such a condition makes it easier for new restaurants to take a role in the industry.

Similarly, the barging power of suppliers is low due the availability of other suppliers in the market. In other words, restaurants can easily switch to other suppliers offering the same products.

On the other hand, the barging power of the buyers is a major force. This can be attributed to three main reasons: low switching cost, larger number of available restaurants and high availability of substitutes.

Therefore, the threat of product substitute is also