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A report on the fast food industry in america

What are some of the bigger challenges facing the industry? Perceptions of unhealthy menus. Generally fast food has a reputation for unhealthy food, while consumer tastes in the United States continue to drift towards healthier options.

While still a risk, this is not a new dynamic and the industry is already fighting back successfully.

Fast food industry - Statistics & Facts

Poor working conditions and low wages. Quite simply this means people work full time jobs but cannot make a living wage, and taxpayers close the gap. Within the last several years employees have been organizing and demanding increased wages - winning their fight in NYC and several other major metropolitan areas. Fast food restaurants have high human resource costs due to staffing the kitchen, the counter and the cleaning crews - and any increase in wages crunches the bottom line.

Only some of these costs will be able to be passed on to the consumer. Think about Taco Bell representing Mexican cuisine to many Americans. Losing business to Fast Casual. Related in part to concerns about healthy options, fast casual is the fastest growing segment of the restaurant industry, and is largely stealing market share from the fast food restaurants.

The food is still fast.

Fast food industry

But the quality is at least perceived to be higher and the menu choices considered to be more dynamic. How is the industry responding to these challenges?

Healthier options Franchise concepts based on healthier ingredients and meal choices continue to pop up, and the old stalwarts continue to add healthy options to their menus.

  1. Watch out fast casual! Higher prices and more efficient operations Labor concerns are a stickier problem.
  2. Are they likely to explore new types of food? Related in part to concerns about healthy options, fast casual is the fastest growing segment of the restaurant industry, and is largely stealing market share from the fast food restaurants.
  3. Watch out fast casual! The food is still fast...
  4. Are there specific regional flavors that resonate with the locals?
  5. How about Hawaiian food? Franchise Diversity New micro cuisine franchises are gaining in popularity.

Locally sourced ingredients - something that has been counter to much of the fast food industry distribution model - are on the rise.

Major chains are promising to source fresher ingredients with less additives, free-range chicken is showing up on more menus, and some restaurants are offering vegetables as a main course or the primary side.

  1. What other types of restaurant options are nearby?
  2. Stronger flavor profiles have also started popping up in 2015 and consumers are loving them.
  3. Some of the increased costs can be passed on to the consumer - but not all.
  4. New plays on old favorites, healthier versions of classics, or unique flavor profiles like a spicy dessert are just a few examples. Effective use of technology.

Higher prices and more efficient operations Labor concerns are a stickier problem. Some of the increased costs can be passed on to the consumer - but not all. Fast food is desirable in part for the low price, and consumers are price sensitive.

Fast Food Industry Analysis 2018 - Cost & Trends

Some franchises are working to reduce their labor costs. In other words, figuring out creative ways to employ fewer people, primarily by leveraging technology. Self-serve kiosks and mobile apps for ordering and paying are the primary examples seen in newer franchises.

Franchise Diversity New micro cuisine franchises are gaining in popularity.

  • Effective use of technology;
  • Fast food is desirable in part for the low price, and consumers are price sensitive;
  • Locally sourced ingredients - something that has been counter to much of the fast food industry distribution model - are on the rise;
  • Some franchises are working to reduce their labor costs;
  • Franchise Diversity New micro cuisine franchises are gaining in popularity.

How about Hawaiian food? Watch out fast casual! Stronger flavor profiles have also started popping up in 2015 and consumers are loving them.

Non-traditional locations Drive-thru and stand alone stores still dominate the fast food landscape, but some chains are exploring new options such as counter service within larger stores, catering and even delivery.

Looking to become a fast food franchisee? Fast food franchises benefit from consistent delivery of both food and experience - look for franchise opportunities with a proven and cost effective system. Menu options need to be creative and offer both healthy and indulgent options. New plays on old favorites, healthier versions of classics, or unique flavor profiles like a spicy dessert are just a few examples. Figure out what will work in your community.

Effective use of technology. Many franchises are using the same exact model of limited service that launched in the 50's.

Restaurants with kiosk or automated table ordering help keep costs down. Look for an iPad. Research your local market This as important as studying overall industry trends - probably more.

Make sure you understand the local economic situation and cultural context. Here are some examples of the types of questions you should be asking: Is fast food a fit for the people of my community? Are they likely to explore new types of food? Or will they eat burgers 7 days a week and twice on Sunday?

Is this a particularly health conscious community?

  • Only some of these costs will be able to be passed on to the consumer;
  • Make sure you understand the local economic situation and cultural context;
  • What other types of restaurant options are nearby?

Are there specific regional flavors that resonate with the locals? What other types of restaurant options are nearby? What is the local labor force like? If you are searching for a franchise opportunity, look for chains that fit your local market, have some price flexibility, are willing to be creative with the menu and are operationally efficient.