Industry Analysis Essay example

1246 Words Nov 27th, 2012 5 Pages

In this day and age people are always on the go, with their busy work schedules. It is more convenient to pick up fast food for lunch, rather than to make a home cooked meal. The fast food industry has seen tremendous growth in the past decades because of changes in American society. Due to the fact that more women were entering the workforce and seeking more convenience created the boom of the fast food industry (11). Several decades ago over 75% of the money used for food was used to prepare meals at home, but today over 50% of the money is used to eat out. The fast food industry is comprised of famous names such as McDonald’s, Burger King, Taco Bell and Wendy’s to name a few. Fast food is now served not only at restaurants
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Some restaurants are also offering smaller portions for half of the cost of a full sized portion. Grocery stores and warehouse clubs like Sams or Costco are providing more ready-to-eat meals and sides, often at a better value than fast food. Convenience stores, gas stations, coffee shops, and deli’s sell sandwiches and beverages, cutting into fast food’s share of the lunch market. Self-Service restaurants like Panera Bread and Pei-Wei are booming in today’s weak economy by offering higher quality food for just a few more dollars than fast food. Even the fast food industry with in itself is competing with one another; the Mc Donalds value meal versus the Burger King’s value meal. They are also thriving on one another; hence the presence of a McDonalds increases the probability of a Burger King or any other fast food restaurant opening up in the vicinity.


In the fast food industry the suppliers have low power because of huge giants such as Mc Donald’s. If Mc Donald’s is not happy with their service they can easily switch suppliers. This leaves suppliers at a disadvantage since there are so many different suppliers who offer the same product. This causes suppliers to have a low bargaining power since the fast food giants purchase their materials from various different outlets. The only power suppliers have in this industry

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