THE UK FAST FOOD INDUSTRY

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THE UK FAST FOOD INDUSTRY

• GROUP B

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Why the UK?

• Easily identifiable
• Different cultural tastes have a large impact on
  the global success of multinational chains at
  national level

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MAIN TRENDS

• Growth in 2000 represents an increase of 4
  compared to 1999
• Growth is forecasted at the same rate in 2001
• Predicted steady overall growth rate until 2005

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Segments and Main Players

• Sandwiches Greggs,Thurstens, Subway
• Burgers McDonalds, Burger King
• Pizza Pizza Hut
• Chicken KFC
• Fish and Chips
• Indian or Chinese Takeaway

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Industry Analysis

• P.E.S.T Analysis
• Five Forces Frame Work

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P.E.S.T. Analysis

• POLITICAL
• Health and Safety Guidelines
• Labelling of GM Foods
• Animal rights campaigns
• 1998 BSE

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P.E.S.T. Analysis

• ECONOMIC
• Low set up costs
• Franchising facilitates set ups
• Support from major suppliers
• Growing market
• Perceived value for money
• Increasing disposable income

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P.E.S.T. Analysis

• SOCIAL
• Busy lifestyles
• Healthy Eating and Obesity
• Increased Vegetarianism
• Homogeneity
• Social Activities

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P.E.S.T. Analysis

• TECHNOLOGICAL
• Investment in technological innovations
• Computer ordering (till system)

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FIVE FORCES ANALYSIS

• THREAT OF ENTRANTS
• Setting Up
• Product Differentiation

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FIVE FORCES ANALYSIS

• THREAT OF SUBSTITUTES
• Convenience Shops
• Mid-range restaurants
• Pre-cooked food
• Other social activities
• Health food shops

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FIVE FORCES ANALYSIS

• POWER OF SUPPLIERS
• Farming Industry
• Worldwide market of suppliers
• Alliances

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FIVE FORCES ANALYSIS

• POWER OF BUYERS
• Consumers
• Little brand loyalty

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FIVE FORCES ANALYSIS

• COMPETETIVE RIVALRY
• New entrants likely
• Price Wars
• Overall demand is increasing

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The Future?

• Strong development in market growth
• Nutritional products come in strongly
• Other niche foods smaller world