GROWTH OF FAST FOOD INDUSTRIES

Introduction You likely know more about the fast food industry than you

realize. it’s everywhere.Off of every exit on the highwayAt every rest stop. In the food court at the mall, On the commercial strips on the outskirts of town.In cities and at airports.

What you may not have noticed, though, is the changing dynamics within the industry.

This industry has been responsive to changing consumer tastes as well as entrepreneurs finding niche opportunities to profit.

This industry is also know as Quick Service Restaurants (QSR) The restaurants themselves are known to have a consistent,

simple look, feel and even music in each location. Customers typically order and pay at a counter or window, and

then take food out or grab a tray to sit and eat. Meals are short, there is no table service and condiments are

usually centrally located rather than table top Consumers of fast food focus on taste, price and quality - in that

order. These restaurants focus on consistency of experience,

affordability, and mostly speed

History of fast food Fast food has always been associated with

urban development and this means whenever highly populated areas sprung up in history; so did fast food

Stuff like flat-breads, falafel and other pre-cooked hot meals were all over the streets of the ancient and medieval world and these types of vendors can be considered the first kind of ‘fast food’.

Its Emergence In Indian Market

Fast food and eating out has dramatically grown in India. The advent of the technological economy and the adoption of modern life in India is fast contributing to this growth.

McDonald's entered India in 1996, against the backdrop of a market that was hesitant to try fast food and was still dependent on the "tiffin" lunch boxes many lug to work.

But eventually in these two decades there has been a massive growth .

Growth Of Fast Food Industries In Indian Market

According to Crisil, foreign brands have grabbed 63% share of the India QSR market since McDonald’s opened its first Indian outlet in 1996.

Fast food is predicted to grow by a value CAGR of 8% at constant 2015 prices during the forecast period.

This is expected to be driven by a younger population

Source: http://www.euromonitor.com/fast-food-in-india/report

With so much territory left to conquer, fast-food chains are expanding fast.

McDonald’s current outlet network is 240 and has decided to expand it .

Domino’s Pizza and Dunkin Donuts in India, will invest Rs2.5bn this fiscal year to add 125 Domino’s stores and 18 Dunkin Donuts outlets.

KFC, Pizza Hut and Taco Bell, also plans to increase its total restaurants in India to 1,000 by 2015, from about 600 currently.

The Major Players In The Indian Market Hamburger-focused restaurants

30%+

Pizza parlours 15%

Sandwich shops 12%

Chicken restaurants 8%

Mexican restaurants 7%

Source: https://www.franchisehelp.com/industry-reports/fast-food-industry-report/

Domino’s Pizza dominates with a 20% shareSubway (12%), McDonald’s (11%), Kentucky Fried Chicken (9%) Pizza Hut (8%).

Source: http://www.eiu.com/industry/article/311021215/india-food-fast-growth-for-cheap-eats/2013-10-03

Advantages You can save money because fast food tends

to be cheaper than the alternatives.You can save time as there is very low or no

waiting time for food to be served.There are many healthy fast food options now

so no need to eat fat-filled burgers and fries.

Disadvantages The fast food restaurant is under threat as society becomes

increasingly concerned with both The health effects of this kind of food, The way it is produced.

Fast food is notoriously bad for you with high calories in meat, buns, fries and almost everything you can get your hands on in a fast food restaurant.

It is no wonder then, that health experts have been warning against fast food for years and continue to protest.

Lower quality foods that are usually caused by a large-scale production process.

How these industries are responding to these challenges

Healthier options

Higher prices and more efficient operations

Franchise Diversity

Non-traditional locations

Conclusion Globally, fast food generates revenue of over $570

billion - that is bigger than the economic value of most countries

The industry employs over 4 million people and counting - restaurant franchises added over 200,000 jobs in 2015.

And rest assured - those opportunities still exist in abundance. The fast food industry is not without its challenges, but it’s clearly still possible to profit in the face of them.