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THE UK FAST FOOD INDUSTRY

THE UK FAST FOOD INDUSTRY. GROUP B. Why the UK?. Easily identifiable Different cultural tastes have a large impact on the global success of multinational chains at national level. MAIN TRENDS. Growth in 2000 represents an increase of 4% compared to 1999

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THE UK FAST FOOD INDUSTRY

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  1. THE UK FAST FOOD INDUSTRY GROUP B

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

  3. 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

  4. Segments and Main Players • Sandwiches: Greggs,Thurstens, Subway • Burgers: McDonalds, Burger King • Pizza: Pizza Hut • Chicken: KFC • Fish and Chips • Indian or Chinese Takeaway

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

  6. P.E.S.T. Analysis • POLITICAL • Health and Safety Guidelines • Labelling of GM Foods • Animal rights campaigns • 1998: BSE

  7. 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

  8. P.E.S.T. Analysis • SOCIAL • Busy lifestyles • Healthy Eating and Obesity • Increased Vegetarianism • Homogeneity • Social Activities

  9. P.E.S.T. Analysis • TECHNOLOGICAL • Investment in technological innovations • Computer ordering (till system)

  10. FIVE FORCES ANALYSIS • THREAT OF ENTRANTS • Setting Up • Product Differentiation

  11. FIVE FORCES ANALYSIS • THREAT OF SUBSTITUTES • Convenience Shops • Mid-range restaurants • Pre-cooked food • Other social activities • Health food shops

  12. FIVE FORCES ANALYSIS • POWER OF SUPPLIERS • Farming Industry • Worldwide market of suppliers • Alliances

  13. FIVE FORCES ANALYSIS • POWER OF BUYERS • Consumers Little brand loyalty

  14. FIVE FORCES ANALYSIS • COMPETETIVE RIVALRY • New entrants likely • Price Wars • Overall demand is increasing

  15. The Future? • Strong development in market growth • Nutritional products come in strongly • Other niche foods – “smaller world”

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