During the past five years, the global fast food industry has expanded in its size despite changes in consumers’ tastes, preferences, and economy. The disposable income has decreased due to recession in 2007 and for this reason consumers have reduced the amount of times they eat out. Consumers are also more health-conscious than before. Therefore, the fast food companies are now considering more healthy foods and avoiding fatty food stuff. But the good thing is the industry has more demand in emerging economies like India, which has improved the performance of the industry.
Key Drivers of Fast Food Industry
There are many driving forces which have shaped the fast food industry and are success factors of the industry. In past, the fast food industry’s main motive was to provide low-cost foods, but with the expansion, the industry is more focused on the customer’s needs. They are using many strategies to be successful in the market.
The Challenges facing Fast Food Industry
The fast food industry is the most challenging industry in the world due to much competition, changing consumer trends, and the intense rivalry. To get your share in the market is very challenging. There are a number of challenges faced by this industry—some of them are listed below:
Health-Related Issues
The main challenge faced by the fast food industry today is health-conscious consumers, obesity, and hygienic foods. Obesity has increased in the world and there has been a lot of news on America’s fight with obesity. Fast food is blamed for obesity because of its greasy, fat-rich, and sodium high products. To cope with this challenge, the fast food industry is trying to bring low-calorie foods in its servings.
Preference of Low Carbohydrate Diet
The Atkin’s Diet by Dr. Atkin suggested that consumers take a high protein diet and avoid carbohydrates. This low carb craze has influenced the fast food companies to include low carbohydrate items and increase protein items. So this is a challenge for the fast food industry to what they offer as low carb substitutes to the existing menu items.
The intense competition
There is a lot of competition and rivalry in the fast food industry, as many fast food chains are striving to get more market share. Big chains like Subway, Krispy Kreme, Pizza Hut, McDonald’s, KFC, Papa Johns, and Dominos are now all competing in India (Zomato, 2013).
Key Drivers of Fast Food Industry
There are many driving forces which have shaped the fast food industry and are success factors of the industry. In past, the fast food industry’s main motive was to provide low-cost foods, but with the expansion, the industry is more focused on the customer’s needs. They are using many strategies to be successful in the market.
The Challenges facing Fast Food Industry
The fast food industry is the most challenging industry in the world due to much competition, changing consumer trends, and the intense rivalry. To get your share in the market is very challenging. There are a number of challenges faced by this industry—some of them are listed below:
Health-Related Issues
The main challenge faced by the fast food industry today is health-conscious consumers, obesity, and hygienic foods. Obesity has increased in the world and there has been a lot of news on America’s fight with obesity. Fast food is blamed for obesity because of its greasy, fat-rich, and sodium high products. To cope with this challenge, the fast food industry is trying to bring low-calorie foods in its servings.
Preference of Low Carbohydrate Diet
The Atkin’s Diet by Dr. Atkin suggested that consumers take a high protein diet and avoid carbohydrates. This low carb craze has influenced the fast food companies to include low carbohydrate items and increase protein items. So this is a challenge for the fast food industry to what they offer as low carb substitutes to the existing menu items.
The intense competition
There is a lot of competition and rivalry in the fast food industry, as many fast food chains are striving to get more market share. Big chains like Subway, Krispy Kreme, Pizza Hut, McDonald’s, KFC, Papa Johns, and Dominos are now all competing in India (Zomato, 2013).