Strategic Management (MGT490)

Semester: Spring-2023

Industry Analysis of Report on Herfy

Submitted to: Dr. Imranul Hoque
Submitted by:
Name ID
Ramisa Trisha 2010729
Md Ariful Haque 1822270
Twaha Tanzim 1831082
Nafisa Islam
2022061

Khushbu Hossian Khushi

1930869

Tahsin Khan 1821532

Submission date: 17th April, 2023

Contents
Company Overview.....................................................................................................................................3
Industry Analysis.........................................................................................................................................4
Industry size and growth trend................................................................................................................4
Maturity of the Industry...........................................................................................................................5
External Economic Factors and their effect on the industry....................................................................5
Seasonality of the industry.....................................................................................................................10
Technological factors............................................................................................................................10
Regularity, Political and legal concerns.................................................................................................11
Competitive environment and changes in the competitive environment................................................12
Key Challenges facing the industry...........................................................................................................12
Company’s steps to navigate those challenges..........................................................................................13
Conclusion.................................................................................................................................................15
Reference...................................................................................................................................................16
Company Overview

Mr. Ahmed Al-Said, the co-founder of the company in 1981, was motivated by a vision of the
future inspired by the global fast-food frenzy at the time. The first Herfy restaurant was launched
in Riyadh the same year, in collaboration with Panda United and its General Manager at the time,
Hamoud Al-Ibrahim. In the same year, in Riyadh, the first Herfy restaurant was launched.
In 1982, Herfy Bakery was established after the company wanted to have more control over the
quality of its ingredients. Panda United's interest in the firm was taken over by Kingdom Holding
in 1994, and Al Azizia Panda United was incorporated with the Savola Group in 1998. Since
then, Herfy has worked in collaboration with the Savola Group. Herfy's success is built on a firm
commitment to high-quality products and highly-trained employees, as well as ongoing
investments in cutting-edge fast-food technology. Herfy has also been turned into a lean yet
strong company as a result of a number of administrative changes. This has enabled Herfy to
pursue an ambitious expansion strategy and compete with the top worldwide fast food and food
production businesses. Herfy has risen to become the Country's largest and most successful fast-
food brand, dominating the Saudi market. It has also grown into one of the Country's first fully
integrated food services firms, with its own top-of-the-line bakeries and cutting-edge meat
processing facility. Herfy is dedicated to serving high-quality menu dishes with exceptional
flavors in a quick, clean, and welcoming environment. Herfy has a diverse menu with options for
beef, chicken, and seafood. Herfy's menu is organized into ten categories, and most products,
such as Big Herfy, Chicken Cheese, Chilli Chicken, and others, may be purchased individually
or with fries and beverages. The Kiddie Meal is a special category of Herfy that caters to
children. Herfy is more than just a burger joint! Unlike other renowned restaurants and chains,
Herfy offers a wide range of items to its customers. Rice & Salad, Wraps and Sides are all
available, as are Ice Cream, Drinks, and Mocktails to round off the meal.
Herfy responds to the industry's highest international standards and provides a SOP (standard
operating procedure) that is simple to understand and implement, resulting in efficiency in the
workplace and smooth operations. The Herfy idea is aimed towards the mass market. It has dine-
in options with children's play spaces, as well as takeout, drive-thru, and home delivery options.

Herfy Food Services Co. (Herfy Food) forecasted a net profit after Zakat and tax of SAR 161.7
million in 2021, up from SAR 52.8 million the previous year.
The gain was powered by a 22 percent increase in revenue year over year (YoY), as well as
decreased general and administrative expenditures and financing charges. Despite a drop in other
income and greater selling and marketing costs, this was achieved. Herfy recorded a net profit
after Zakat and tax of SAR 49.5 million in Q4 2021, up from SAR 20.6 million the year before.
After minority interest, total shareholders' equity increased by 10.16 percent to SAR 1.056
billion in 2021, up from SAR 959.40 million in 2020.
COMPANY REVENUE

Item 2020 2021 Change

Revenues 1,076.08 1,313.86 22.1 %

Gross Income 249.59 385.49 54.5 %

Operating Income 91.33 190.06 108.1 %

Net Income 52.84 160.84 204.4 %

Average Shares 64.68 64.68 -

EPS (Riyals) 0.82 2.49 204.4 %

In Bangladesh, Herfy established its first location outside of the Middle East on December 22,
2017, The company's original location was in Gulshan, Dhaka, Bangladesh.On February 20,
2018, Herfy Bangladesh established its second store in Banani, Dhaka, and on February 1, 2019,
Herfy Bangladesh established its third store in Uttara, Dhaka with Saudi Ambassador Abdullah
Al Mutairi, Deputy Minister of Environment, Forest and Climate Change, Begum Habibun
Nahar, inaugurating the 3rd branch of Herfy, Arabian Halal Food at Uttara Area in the city
recently. Greenland Group Chairman Mohammad Abdul Hye, Vice-Chairman Ayaz Waris Khan
Warisi, Managing Director Abdullah Al-Mamun, Executive Director Abdul Gani Mahfuzur
Rahman Manu, Chief Operating Officer Imtiaz Mohammad Faisal, Director Khalid Bin Ayaz
Khan, Director Mohammed Mishal, Marketing Manager Azam and Technical Manager of Saudi
Arabia Herfy Esha Muhammad being present.

Industry Analysis
Industry size and growth trend
The fast-food trend began in the early 1990s. It has mostly targeted the lower end of the market
and personnel in the business sector in Bangladesh. In Bangladesh, the fast-food culture has
taken over the country. In Dhaka's Bailey Road, the first fast food restaurant officially opened.
Following that, a slew of fast-food joints sprung up in all corners of Dhaka. Local businesses
have been at the forefront of Bangladesh's fast-food sector. Some Bangladeshi fast-food outlets
founded through the franchising system have new labels such as Swiss, Helvetia, and others. In
the early 2000s, Bangladesh saw the introduction of the country's first foreign fast-food chain.
Pizza Hut and KFC have franchise agreements with Transcom Foods Limited to enter the
Bangladeshi market (TFL). Yum! Restaurants International, the world's largest restaurant
corporation, owns both Pizza Hut and KFC. In the last five years, TFL has opened three Pizza
Hut locations and three KFC locations in Bangladesh. In 2003, Pizza Hut established its first
location in Dhaka. The Chittagong store opened in 2005, following the success of the Dhaka
location. In Dhaka, the third Pizza Hut location opened in 2008. Meanwhile, Kentucky Fried
Chicken (KFC) is regarded as a high-quality fast food that offers a wide range of full meals to
enhance the consumer's daily life.

Maturity of the Industry

The development of food-carts surrounding residential areas in Dhaka was the first explosion of
the fast-food scene. In contrast to the few luxury eateries, these carts supplied quick meals at a
very reasonable price, without sacrificing too much on quality. Food-cart enterprises have grown
well-known in the city throughout the years. Some of them are progressing to greater heights.
The eateries in Gulshan, Dhanmondi, Baridhara, Bashundhara 300 ft, Mirpur, Malibag,
Khilgaon, Hatirjheel, Mouchak, Mohammadpur, Baily Road, and Puran Dhaka provide a wide
range of selections, from moderately expensive to more economical options. With several design
darlings paired with eating inventiveness, these eateries offer the right décor. The exquisite
experience with delectable catering is a one-of-a-kind toss. From vegetables to freshly cooked
beef, poultry, and fish products, the exquisite experience with appetizing catering is a one-of-a-
kind toss. Dhaka's dining-out culture has expanded dramatically over the years. In Dhaka,
increased eateries are establishing to appeal to budget-conscious clientele, resulting in a surge in
the number of these restaurants and cafés. The expansion of the food service business in
Bangladesh has risen as a result of such fantastic eating experiences. One of the most important
and exclusive businesses that contributes significantly to the country's developing economy is
the food service industry. It will be able to contribute more in the near future, both locally and
worldwide. Furthermore, the growth of this business will assist us in becoming one of the
greatest in the world. Franchise restaurants in our nation will soon become worldwide brands.
The number of investors in this area is also steadily expanding. In the food service sector, we are
heading toward a future filled with many hopes and dreams.

External Economic Factors and their effect on the industry

Inflation – Although Bangladesh has a stable inflation rate, it still affects the overall fast-food
industry as it makes the purchasing power of money lower. Prices of raw ingredients gets pushed
high forcing prices to go high as well. This is one of the main reasons why many eateries have
increased their prices almost tenfold in the past years.
High Interest Rates – Bangladesh is known to have high interest rates, which naturally
discourages investment of any kind. Due to this there aren’t many multinational fast-food
franchises that really want to be a part of the ever-growing Bangladeshi fast-food industry. This
can be one the main reasons why fast-food giant such as McDonald’s is yet to show its presence
in this market.
Corruption – Bangladesh ranks 26th out of 180 countries listed for the Corruption Perception
Index. These rankings discourage other brands from entering the Bangladeshi market. Moreover,
eateries that are already present in the market become skeptical in dealing with the government.
Economic Growth – This has fueled the economic development in Bangladesh. The increase in
economic growth has pushed the purchasing power of the people in the economy. What was a
once in a week thing (eating fast-food) has now become a much frequent recurring thing?
Unemployment Rate - The unemployment rate has been consistent in Bangladesh. Most often the
rate fluctuates because of the arithmetical progression of the population without taking proper
account of the people in the economy. The fast-food industry has however produced a lot of jobs
for the working-class people of the country and furthermore helped in balancing the
unemployment rate.

People's intake of fast food has also been affected by urbanization. Urbanization rates are
expected to rise between 2000 and 2030, compared to the previous 30 years, according to
projections. In 2000, the urban population was forecast to be over 2.9 billion people; by 2030, it
is expected to be 4.9 billion. The cities of emerging countries will see the most growth. Its
population is predicted to grow from 1.9 billion in 2000 to over 3.9 billion in 2030. All of the
population expansion in emerging nations will be accounted for by this transformation. Large
regional disparities are obscured by the overall picture of an increasingly urbanizing planet. As a
result, in many industrialized and transition nations where the vast majority of the population
currently lives in urban areas, urbanization will take place gradually in the future.
SWOT Analysis
Internal:
Strengths: Herfy Bangladesh's main competitive advantage is their international brand image.
When it comes to earning income, the brand name is quite important. Because Herfy Bangladesh
provides international-quality meals to its clients, the brand name has a higher value. Herfy has
previously been distributing its high-quality goods and had a significant market share. They have
better combinations than the other brands. Herfy has a large international following of dedicated
customers who prefer their products to those of other stores. Herfy offers larger burgers than the
competition. They also provide a kid's menu with an entertaining system for the kids. This raises
their sales since people are drawn to them because of their business practices.
-Leading position in many countries.
-Strong global presence.
-High international customer base.
-Strong brand name in consumer mind
-Herfy Bangladesh has goodwill in market for their better quality and bigger combos.

Weakness:
Herfy Bangladesh has few weaknesses.
The high cost of their cuisine is seen as their primary flaw. When they are mentioned, they face
stiffer competition. In comparison to other prominent firms, their policies are not as radical.
Because of the lack of juiciness, several individuals dislike their burgers, which are their most
concentrated product.

External:
Opportunities: This assures that they have a lot of chances and a long way to go in the industry.
Their key advantages are that they can provide high-quality meats imported from Saudi Arabia
and maintain their international reputation. They provide kid-friendly cuisine as well as a kid-
friendly entertainment system, which no other rival offers. They are in the midst of opening new
locations so that they may better serve their consumers. They hold contests and special deals for
their clients on a regular basis. They are continually attempting to learn more about the desires.
They have more possibilities and, as a result, more growth. There are both foreign and internal
opportunities. They think that one day they will be the market leader.
-Look for more sales and trade promotional schemes.
-Entering a new market.
-Extend the existing business.

Threats: Their primary challenges include direct and indirect competition, as well as shifting
customer preferences. Food businesses are now maintaining their pricing for foods, resulting in a
price war. They are cutting the prices of their inferior-quality meals in order to entice customers
and undercut the competition in order to increase sales and market share. However, Herfy
Bangladesh has decided not to lower their costs because doing so might devalue their products
and create a negative reputation in the market. They sell high-quality items, and lowering their
prices will have a significant impact on their brand image. As a result, they plan to stick to their
core beliefs of supplying high-end or premium items at premium prices. Another major issue is
the promotion efforts of rivals. Herfy Bangladesh is not pushing their brand as aggressively as its
competitors in recent days.
-Increase competitors’ promotion.
-Changing consumer preference.
-Increasing price of raw materials.
PESTLE Analysis

Political
Wide Regulation
For every element of the food business such Herfy, the government has extensive regulatory
frameworks. This covers the cleanliness of commercial kitchens, produce storage and
transportation regulations, and even labor needs in the food industry. This makes the food
business, without a question, one of the most heavily regulated industries in the world. On the
bright side, this guarantees that customers are not exposed to low-quality food, but the regulatory
complications eat into the food industry's profit margins.

Economic
Growing Disposable Incomes
Bangladesh's population is increasing in wealth on a general basis. As a result, people in the
lowest, middle, and higher classes have more money to spend on luxuries like restaurant cuisine.
As a result, the food industry's overall income is increasing as people cook less and dine out
more. This benefits everyone in the industry, including restaurateurs, food wholesalers, and the
individual employees that work in these establishments.
Increasing Labor Costs
The rise in disposable income is due to the fact that employees are earning more money these
days. The cost of employing people is rising across the board in all businesses. This is due to a
growing need for workers, as well as increasing government demands for minimum pay. The
result of growing labor expenses, like in many other sectors, is simple: less margin for the
business owner, and consequently less profit.

Sociocultural
Health Consciousness
Scientists now know more than ever before about the link between food and our bodies. There is
a strong link between what we eat and our overall health, and customers are aware of this. As a
result, many people are seeking for more nutritious methods to feed their bodies. This does not
necessarily imply that the food sector will benefit or suffer, but it does mean that firms will have
to change in order to stay relevant. Herfy, for example, would most certainly have to shift away
from high-calorie fried dishes and toward healthy options like salads and vegetable Burgers.

Dietary Restrictions
Consumers are also more aware of their own dietary constraints, in addition to having a greater
understanding of what foods are and are not nutritious. Many people are now aware of the
harmful effects of gluten on people who have Celiac disease. As a result, customers have come
to demand more understanding from individuals in the food sector. This is not necessarily a
negative thing, but it does imply that the food sector will have to adapt in order to keep
customers satisfied.

Technological
Automation
In the food business, we are witnessing an increasing amount of automation. The usage of self-
checkout displays at fast food restaurants such as McDonalds is perhaps the finest example, but it
is far from the only one! Recently, viral footage of a hotel's robot preparing omelets went viral,
causing social media platforms to go berserk. There will be less need for laborers as we discover
more methods to employ technology in the food business, including robots. Overall, this is
beneficial to the industry since it will help firms to increase revenue while lowering the risk of
human mistake.

Legal
Safety Standards
The food business has strict requirements for safety. Every nation, in particular, has a slew of
regulations governing how food should be transported, kept, and cooked, including guidelines on
what temperatures certain foods can withstand, how they should be cleaned, and so on. While
this is primarily a political problem, if any of these restrictions are ever broken, it becomes a
legal concern. As a result, those in the food industry must exercise considerable caution to ensure
that they comply with these guidelines in order to avoid costly litigation.
Environmental
Impact of Meat
Not only are people becoming more conscious of the health consequences of what they eat, but
they are also becoming more aware of the environmental consequences of what they consume.
Meat is a particularly troublesome dietary category in terms of environmental impact. Meat
production, particularly red meat production, consumes a lot of water and has a big carbon
footprint. Moreover, the meat business is razing enormous areas of forest to make way for new
farms. As a result, an increasing number of people are transitioning to plant-based diets, and
governments are beginning to take notice. Again, this is not inherently a bad thing for food
businesses, but they will have to consider the long-term implications of this move.

Seasonality of the industry

Many Factors are affiliated when it comes to the seasonality. Apart from other industries chicken
is never low on supply unless there is any out-break of chicken flue (e.g- H5NI bird flu, Chicken
Anemia Virus). In the case of other fast foods such as burgers, sandwiches etc. In many areas
seasonal holidays or major events can cause decrease of sell. There are also major events where
the restaurant is packed for the whole day allowing sales to increase at maximum.
During the peak demand, the restaurants must keep stock of enough chicken and other necessary
ingredients so that the customers can get the fill. Luckily for Herfy who’s main target food is
fried chicken and burger is never short in demand around the globe. Even during special festivals
Herfy’s dining spaces are packed.

Technological factors

Technology has improved over years on every industry. Incase of food industry the production of
food through applications, robotics, data and processing techniques is a very important factor. In
recent times with better technology food is prepared with a faster pace. The equipment to prepare
the food has changed rapidly. For example, in light of meat production, Herfy requires a huge
number of chickens every day. To satisfy their demand of chicken better chicken farms are
required. For the chicken industry responsible workers for land, fresh air water and the managing
of feed is the most important asset. With continuous innovation of technology and by
maintaining the best possible bird health the usage of water, land and electricity is being reduced
significantly. The pollution in breeding chicken on the environment has decreased to 50% as it
was in 1965. Latest technology has allowed to take every possible reading on the chicken to
ensure their perfect growth and health.
Grow out houses, the stables where oven chickens live and develop, are furnished with PC
frameworks that action and screen water utilization on the homestead. Ranchers steadily watch
for any unusual water use examples to assist with distinguishing any issues, for example, water
spills, which recoveries water.
Most current chicken ranches use "areola" watering frameworks as another water-saving
apparatus. Areola watering frameworks are pin initiated water gadgets, similar as a bunny or
hamster water bottle with the metal roller. At the point when the birds press the pin, water is
delivered. This assists limit with any watering being spilled on the poultry litter, or floor, and it
possibly apportions water when the birds need to drink.

Most grow out houses are likewise outfitted with cooling frameworks that comprise of cool cell
cushions, which dissipate water, toward one side of the house and huge passage exhaust fans at
the opposite end. This keeps the chickens cool, yet additionally reuses water on the homestead.
Chickens are the most proficient converters of feed into meat of all land-based animals’ species
because of a few key elements:

● Customary rearing

● Nutritious feed custom fitted to each phase of a chicken's life

● Better day to day environments through environment-controlled horse shelters and new
innovation, and insurance from outrageous temperatures, hunters and sickness
● Forward-thinking biosecurity rehearses

● Veterinary oversight

These elements bring about chicken requiring less feed and water to develop to showcase weight
which brings about chicken having less of an ecological effect.
Regularity, Political and legal concerns

In Bangladesh, there is a regulatory body that influences the activities and workings of those in
the fast-food industry, known as the Bangladesh Food Safety Authority (BAFSA). Established
under Section 5 of The Food Safety Act, 2013 of the People’s Republic of Bangladesh, the
authority’s main responsibility is to look after food safety and hygiene issues surrounding the
serving and working conditions of fast food in numerous restaurants and food courts. A good
example of the working of BAFSA would be heavy fines imposed on “Pagla Baburchi”, a
venture of Madchef for not being able to maintain health and hygiene guidelines. Similar
examples can be pulled up regarding various other restaurants in which BAFSA has put these
franchises under the hammer for disregarding clean cooking and culinary environments. These
fines not only put these companies on a watchlist for future infringements but also bring a bad
reputation amongst the fast-food industry.
Bangladesh’s political standpoint regarding fast-food franchises, heavily affects the whole
industry that is established in the country. Since Herfy is a multinational company, it is
scrutinized even more since it is in direct competition with local fast-food sellers and joints.
Other multinationals such as KFC, Pizza Hut and Dominoes keep a very good relationship with
the government of Bangladesh since there is a lot at stake in terms of reputation and goodwill as
these are companies that run multibillion dollar businesses around the world and would not want
to do criminally unjustifiable acts such as tax evasion or resource exploitation solely based on
the fact that doing such things will bring in questionable circumstances in future deals in moving
into other host countries.

Competitive environment and changes in the competitive environment

The fast-food industry in Bangladesh was pretty much stale back the early 2000s. The
introduction of Pizza Hut in 2003 brought in a huge storm of people that wanted to try the world-
famous pizzas that were quite a big deal in the west. This initial market entry was intriguing to
all the major fast-food franchises around the world since it could have been used an example to
study the Bangladeshi market even more. The next franchisee to take advantage of this market
was KFC, that moved in 2006 to spread the joy of fried chicken amongst the Bangladeshi
consumers. KFC became an instant hit amongst the people and soon opened multiple outlets. As
of now they have 23+ outlets all around Bangladesh serving all the major cities trying to reach
out to as many people as possible. Similarly, Herfy moved into the scene in 2017, this move
raised a lot of initial questions as it was not a well-known brand around the world and was a
Saudi grown fast food giant. However, they proved the doubters wrong as Herfy was accepted by
consumers wholeheartedly and their Angus burgers took the fast-food market by a storm, putting
out a figurative statement, that the Saudi boys were here to play. As of now they have 5 outlets in
Dhaka and are planning to open 30 more outlets all over Dhaka as mentioned by their Head of
Operations in a one-to-one interview.

The fast-food landscape has seen revolutionary changes in the past 20 years as more and more
foreign companies look to take advantage of the ever-growing population of the country.
Regardless of international firms, there are hundreds and hundreds of local fast-food chains here
in Bangladesh. As there was an upward growth in the standard of living and purchasing power of
the people in the country, more and more people were able to afford fast-food. Local chains such
as Takeout, Chillox and Madchef have also been able to take advantage of this ever-booming
industry. The pandemic has furthermore increased sales as people were able to order their
favorite burgers, pizzas etc. online.
Key Challenges facing the industry

Though ‘Herfy’ is one of the leading companies that has successfully established a reputation on
its market-leading restaurant, bakeries, and meat-processing businesses. But, there are certain
challenges that the industry has been confronted in recent years. Those difficulties are being
discussed as follows_
1. Consumer behavior switches toward healthier food:
⮚ Nowadays, consumers are looking for healthier options due to maintaining a healthy
lifestyle. This trend has become a hot topic. Especially, among youth and teenagers.
Research published in 2019 articulated that a sudden health consciousness seems to rise
among Saudi consumers because of the increase in higher education and the rise of
internet usage.
⮚ Based on the research of the General Authority of statistics, In the Kingdom, 48.6% of
the population falls under the 30 aged group. For having such number young population,
the industry may experience a threat in growth rate for the long term.
⮚ According to an estimation, almost 17.9 million people died from cardiovascular diseases
in 2019 which illustrates 32% of all global death rates. Among all these deaths, 85% of
death incidents happened for heart attack and stroke. Moreover, the government is also
enforcing the rules and regulations against the food industries keeping these issues in the
light which may influence the industry’s long-term performance.
2. Increase in marketing and selling expenditure:
⮚ Herfy's sales and marketing expenditure by 48.7% in 2019, reaching an all-time peak
of SAR (Specific Absorption Rate) 65 million, up from SAR (Specific Absorption
Rate) 43 million in the first nine months of 2018. Though, there is a positive impact
that has been seen in the industry’s revenue due to the rise in sales and marketing
expenditure. But this huge cost may not be beneficial for a longer period. It should be
stated that promotion and marketing expenses have brought an immediate positive
reflection on the revenue growth of the restaurant sector.
⮚ Although a rise in gross margin due to higher selling and marketing expenses, the
EBIT (Earnings before interest and taxes) margin dropped to 16.5 percent in Q2
2019.
By Q3 2019, despite the continuous rise in marketing and selling expenses, the
industry accounted for only 3.0% of Y-o-Y revenue growth whereas, EBIT returned
in Q3 2019, owing to a large increase in gross margins, which reached 32.7 percent,
the highest level after Q4 2016.
⮚ Despite there being an increase in EBIT margins, still, the higher amount of sales and
marketing cost can be a great threat for the company.
Company’s steps to navigate those challenges

The fast-food industry was born and grew in popularity as people's lifestyles changed and their
pace of life increased. Fast food companies have carved out a special place in our hearts, to the
point where, despite rumors and reports about the negative health effects that fast food can have
on our bodies, our passion for fast food remains strong and unaffected. Because of the increased
demand for food goods around the world, players in the fast-food industry are making money.
Fast food chains such as Herfy, McDonald's, and Domino's Pizza have sparked a worldwide
franchising revolution, which has proven to be a cost-effective and efficient means of expanding
and profiting for industry players.
The fast-food sector, like any other industry, is not without its setbacks and obstacles. Let's have
a look at a few of them to get a better sense of the challenges that organizations in this area face:
Consumer behavior switches toward healthier food:

● It's no secret that fast food is synonymous with "unhealthy"; it's not dubbed "junk food"
for nothing. But that doesn't stop our gluttons from gorging themselves on these carb-
heavy foods. There has been a clear shift in this trend recently, particularly with the
growing awareness of exercise and a healthy lifestyle. People are becoming more health-
conscious and diet-conscious by limiting and, in some cases, completely eschewing fast
food in favor of healthier alternatives.
● A healthy lifestyle is both necessary and desirable. It is also one of the most significant
dangers the fast-food industry will confront this year. People have a frequent
misconception that fast foods have a lot of negative side effects; therefore, they only eat
them on rare or irregular occasions. As a result, fast food firms have been forced to re-
create their products and re-strategize their marketing strategies in order to inform their
customers that their food products are healthy.
● With the growing health craze among customers, it has become a major issue for fast
food firms to find ways to reduce carb content in packaged meals and beverages. One of
the major issues facing fast food firms this year is meeting expectations such as reduced
carb content, short food preparation time, and employing healthier food products.
Fluid pricing:

● Many food firms keep track of their customers' information. This information is utilized
to adjust the basic fair prices of discount coupons, seasonal specials, and in-app menus
for customers. This dynamic pricing mechanism will be adopted by fast food restaurants
in the near future. The recorded data would provide information on consumer
 preferences, allowing fast food restaurants to offer discounts on overstocked items,
modify prices according to location, and charge higher rates during peak hours.
● There are a few diets that have already made their way onto menu cards, but "The Gut
Friendly Diet" is one that has yet to appear. Many restaurants in the United States have
already introduced stomach-friendly dishes to their menus. To give the cuisine a bold and
intense color and flavor, various fermented foods such as beets, kimchi, and sauerkraut
are added to the food.
Increasing Competitors promotion:

● The fast-food business is unquestionably one of the most competitive in the world, and
the level of competition among players only grows as expansion strategies are
implemented. Each brand in this industry is working hard to set itself apart from the
competition, which only adds to the amount of competition and rivalry already there.
● Companies in the fast-food business have a number of lucrative opportunities. As a
result, the number of new market players has expanded, and most firms are now simply
striving to outshine their competition through various marketing methods. Furthermore,
this healthy competition is leading to the development of new strategies for making
superior and distinctive items.
● The year 2018 will be remembered for the tremendous changes that technology will bring
to the fast-food business. Customers' three requests are Convenience, Comfort, and
Customization. When automation is used, this can be best accomplished. Due to
workforce shortages, the fast-food business is in desperate need of technology. To receive
orders via social media sites, several fast-food companies are now adopting artificial
intelligence and chatbots, as well as chat screens and kiosks.
● People are becoming increasingly busy, which necessitates a high level of quickness.
People are pressed for time, which is driving up demand for takeaways and meal
delivery. Restaurants need come up with some new techniques to accommodate new
takeaway delivery and pick-up regions if they want the fast-food sector to flourish.
The increasing price of raw materials:

● Despite the wide range of products available, Herfy does not compromise on quality. To
maintain their high-quality level, they seek the best ingredients from both within and
outside the local area. To be more exact, the following is a list of where you can get the
ingredients for a burger:
Buns – Cooper’s (Bangladesh)
Hot Sauce & Garlic Mayo - MAMA SAUCE FACTORY (Riyadh/K.S. A)
Lettuce – Thailand
Tomato – Dubai and from India (in off session)
Onion – Turkey or from local market
 Pickles – America
Cheese – Australia
Ground Beef & Angus Beef – Australia

Conclusion

As multinational franchises started moving into Bangladesh with Pizza Hut being the pioneer in 2003,
with Herfy moving in recently and being a huge success, other franchises around the world have gained
a certain level of confidence in Bangladesh. The fast-food industry has come a long way from where
it began. Along the way many others grew with them where KFC is also there as a big part of
that industry. In order to survive the food industry these fast-food chains thrived with the
economic factors in the country.

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