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BUSINESS STRATEGY THE CATERING SECTOR INTERNATIONAL HOSPITALITY MANAGEMENT

BUSINESS STRATEGY THE CATERING SECTOR INTERNATIONAL HOSPITALITY MANAGEMENT Group 3. 30 th November 2001 BECKY DEADMAN, KATY EAGLE, LISA GALLAGHER, LAURA WALTON. Format of Presentation. General Catering Sector - specifically looking at Fast Food What is Fast Food?

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BUSINESS STRATEGY THE CATERING SECTOR INTERNATIONAL HOSPITALITY MANAGEMENT

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  1. BUSINESS STRATEGY THE CATERING SECTOR INTERNATIONAL HOSPITALITY MANAGEMENT Group 3. 30th November 2001 BECKY DEADMAN, KATY EAGLE, LISA GALLAGHER, LAURA WALTON

  2. Format of Presentation • General Catering Sector - specifically looking at Fast Food • What is Fast Food? • An analysis of the market and competition with analytical tools • Discuss external factors that affect the fast food sector • Consider stakeholders • Look into the future and forecast of the fast food market • Conclusion

  3. HOTEL CATERING ROAD SIDE CATERING FAST FOOD THE CATERING SECTOR IN-STORE RESTAURNATS OTHER CATERING PUB CATERIING INDEPENDENT & CHAIN RESTAURANTS

  4. 6% 26% 17% 2% 5% 22% 22%

  5. General Eating Out Trends • The eating out sector has increased 32% between 1996 - 2001 • Higher Disposable Income • Demand for Value For Money

  6. FAST FOOD • Food which is prepared and served quickly to customers on order • Food may be takeaway or eat on premises • In general Fast Food is collected from a counter, not table service • Relatively cheap food • Convenient

  7. Fast Food Includes……. • Burger Bars e.g, McDonalds and Burger King • Pizza Restaurants, Takeaway and Home Delivery Outlets • Pasta Chains e.g, Bella Pasta • Chicken Chains e.g, KFC • Fish and Chip Shops • Ethnic Takeaway • Other Fast Food e.g, Jacket Potatoes, Sausages, Vegetarian Specialists and filled croissants

  8. Burgers Pizzas Fried Chicken Key Markets Pasta Juice Bars Sandwiches Organic Specialities Ethnic Takeaway Jacket Potatoes Traditional New emerging markets

  9. Growth of Fast Food Market • Domination of eating out sector • Consumer spending doubled over the last 10 years

  10. Market Structure • Large Scale • Characteristics • Key Features

  11. Market Environment • Ease of Entry to Market • High Failure Rate • Competitive

  12. Fast Food Customer Trends • Core Market - Young, Social & Affluent • Elderly & Cash Constrained • Family Market • Regional Differences • Similar throughout the UK • North/ South divide • Reasons for differences

  13. BOSTON CONSULTANCY GROUP MATRIX MARKET SHARE Low High Ethnic takeaways Sandwich shops Yo! Sushi GROWTH McDonalds Burger King KFC Pizza Hut Wendys Wimpy Harry Ramsdens Low

  14. PORTERS FIVE FORCES MODEL - FAST FOOD Potential entrants Ease of entry into market. Suppliers As a new company suppliers have the bargaining power over the companies. However if there are ample suppliers then the companies are able to choose. Buyers- Customers Have so much choice that they can now demand value for money and have bargaining power. Competition/ Rivalry New FF restaurants Existing FF restaurants serving different types of fast food. Substitutes Increased ‘pub’ restaurants which are good value for money. Retail food e.g.. Marks & Spencer's

  15. Factors Affecting the Catering Sector • Political • The Governments reaction to Food Scares • The encouragement of healthy eating • Government encouragement for families to sit round the table • Government legislation on employment

  16. Economical • High property and operating costs • Increase in taxation

  17. Social • Increase in the young eating out • Lifestyle changes • Smaller fast food outlets have a reputation for poor hygiene

  18. Technological • Drive through • Advertising and ordering on the internet • Improved cooking techniques and facilities

  19. Environmental • Decrease in inbound tourism • Foot and Mouth disease • BSE crisis • September 11th 2001 – Terrorist attacks

  20. Customers Community Competitors Employees Suppliers Government Owners & share holders Financial lenders Stakeholders

  21. The Future Forecast of the Eating out market 2001 - 2005 Source: Mintel Report - Eating Out Review. 18/06/2001

  22. The Future • Fierce Competition • Keep prices down • Consumers demand better quality of food & service and value for money

  23. The Future • Personal Disposable Income (PDI) • The socio-economic status of the population • The structure of the UK population • Families will still remain a very attractive market to target

  24. The Future • New sales opportunities through the internet • A “gap” in the children’s vegetarian market • The concept of healthy fast food

  25. Forecast • Pizza restaurants - key area:delivery • Chicken & Burger bars - the market appears to be saturated • Ethnic takeaway - Chinese & Indian remain popular but new competition from other ethnic cultures • Fish & Chips - remain an old favourite but new fish bars may start to compete

  26. Conclusion • Easy to enter but hard to succeed • Highly competitive, diverse and large market • Growth markets are new ethnic takeaways • Move towards healthy eating such as sandwich shops • Positive outlook for the future

  27. Thank-you for listening. Any Questions?

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