Industry Analysis

Fast Food Industry

April, 2016
Afrasiab

History of Industry
Competitors

McDonalds

Headquarters- Oak Brook, IL

KFC

First store opened in 1940 by the McDonald brothers

First store opened in 1952

YUM New York USA

Burger King

Founded in 1954
Headquarters in Miami, Florida

Fast-Food Restaurant
Industry
Growth
Competition Analysis
Competitive Position of Major Companies
Competitor Analysis
Key Success Factors

Fast Food Industrys

Major Players(Branches)

MacDonald's
KFC
Hardees
Fat burger
Burger King
Johnny Rocket
Subway

Dominant Store with

Share

Companies in Industry(2015)

There are 8 main companies that captures 85.1% of fastfood Market

KFC 33 %
McDonald's 29 %
Hardees 10 %
Fat Burger 4 %
Burger King 7%
Johnny Rocket 0.8 %
Subway 1.3 %
Other 14.9 %

Competitive Analysis
Rivalry among competing sellers
In the fast food industry Competition is high
Many options for customers
Low prices/price wars
Many substitute products easily available
Customer decisions based on what is available at
time

Advertising
Promotional incentives
Products differentiated

Driving Forces
Factors that effect Driving Forces
Globalization of the Fast Food industry
Opportunity for long term growth
Fast Food and differentiation of product
Forces with minor effect
Changing Societal Concerns and lifestyles
Uncertainty and business risk

Driving Forces
Forces with minor effects
Technological Change
New technology can increase productivity and
reduce costs

Customer base
Broad base of customers although some more
than others

Product innovation
Changes in offerings and extras are very

common in the market, but innovation in food is

rare

Competitor Analysis
Strategic Group Mapping

Future Growth
Pakistan holds the worlds eighth largest market when it
comes to
fast food and food related business.
business
Youth constitute about 60% of entire population in
Pakistan.
poultry consumption at 834,000 tones a year.
Government stability attract more investor.
Better law and order situation in future.
Centaurus Islamabad food court sale at weekend is about
12
Millions(Saturday)
Pak China corridor will attract more foreign.
Cricket matches in Pakistan expected in 2016 (PSL)
Branches are going to open in Peshawar, Multan, Gujrat,
Jhelum, Abbottabad, Faisal Abad etc.

Key Success Factors

The Key Success Factors of Fast-Food
Restaurant Industry are:
Convenient Locations
Clever Advertisement
Consistency
Food Quality
Food Innovation
Cost Control
Favorable Image & Good Reputation
Fast Services

Industry Prospects and

Overall Attractiveness

Fast-Food Restaurant Industry Issues

Food Safety Issue
Health Issue (Punjab Food Authority)
Toys Issue
Staffing Shortage Issue
Parking Issue
Law & Order Situation
Electricity , Gas Shortage
Higher Rent

Other Major Food Service

Provider Companies
Nandos
Pizza Hut

Future WQSR War

Domino Pizza
Golden Chicks
OPTP
Gloria Jeans
Coffee Planet
One Cup
Papa jones

END