Hong Kong Fast Food Essay example

1656 Words Feb 18th, 2013 7 Pages
Hong Kong-style fast food is either served in fast-casual restaurants such as Café de Coral, Maxim's and Fairwood or in food courts typically attached to malls or supermarkets such as CitySuper. The food offered is a mix of Canto-Western cuisine, Cantonese fares, and increasingly Asian food from outside China.
Fast food industry faces a challenging and volatile environment. Food is a fast-moving consumer products and companies must be swift and agile to compete globally. The sector is highly vulnerable to changes in consumer demand and commodity price shifts.
Porter's five forces analysis is a framework for industry analysis and business strategy development. The followings are the factors of Porter’s five forces:
1) Threat of New
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Government regulation The established statutory minimum wage policy in Hong Kong since 2011 (Labour Department, 2011) makes the running cost of fast food industry increased.
Threat of new entrants into the Fast Food market within Hong Kong is low as a whole of industry as the large established fast food brand companies which have economies of scales of production costs, it makes the price of products even competitive.
2) Bargaining Power of Buyers
It is expected that consumers in HK do have some bargaining power that they can choose what type of fast food restaurant they want to go to. However, location and type of food may reduce this bargaining power.
As consumers would not have access to the same equipment and food supplies that the fast food restaurant does. It would be difficult for consumers to duplicate the taste of the meal at home, in addition to the atmosphere that attracts them. The BBC news indicates that Hong Kong is the top city in consuming fast food over the world (BBC, 2004).
The customer bargaining power is low for fast food industry.
3) Threat of Substitutes
The generic product of fast food is mainly considered as convenience.
The threat of substitute products is mainly found in the frozen food section of the supermarkets. The substitute product offers both cheap value meals and quality products.
But still the frozen food has an image problem with their food. Even though it can offer the same quality, convenience and…

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