FAST FOOD INDUSTRY ANALYSIS Harvard Case Solution & Analysis


Potential Outcome of Fast Food Industry:

There are positive as well as negative potential outcome of the prevailing trend in fast food industry. The positive potential outcome is it save time and provide quality at low prices due to competitive nature of the industry and these trend provide convenience of time and price to individual. The negative outcomes arising from this industry is increase in obesity and other disease which is increasing at faster rate due to fast food which is not considered as a healthy food.

After the research and analysis on the fast food industry it is found out that there is a great potential in the fast food industry. This potential is somewhat exploited by the currently prevailing fast food restaurants in the industry. The creativity and variety of items on the menus of fast food restaurants and their innovation in increasing the items on the menu is attracting the customers. Moreover, the hygiene and quality maintained by the fast food restaurants due to increased regulations and competition also improved the expected potential outcome of the fast food industry. (Fulkerson, 2018).

Fast food Industry in 5, 10, and 20 years:

Analyzing the fast food industry, its potential and consumer adaption of the trends created by fast food industry through competition in providing better quality, innovation, pricing, and variety unlocked the hidden potential of the fast food industry. Although, the growth in the fast food industry is 2.5% annually and it is expected to grow at that constant rate because many fast food restaurant don’t survive in the industry because of the lack of maintaining quality and hygiene (Sena, 2018). After 5 years the industry could somewhat capture the market share of traditional foods by increasing innovation and variety in their fast food menu and increase their market share. Moreover, after 10 to 20 years the fast food industry is likely to dominate the traditional food industry globally due their adaptability with regard to the innovation and increased number of hygienic and low calories item on their menu.


It is analyzed after conducting analysis and research on the fast food industries through different articles it is found out that the growth in the fast food industry is on increasing trend due to their innovation, focusing on quality and hygiene and increasing variety on their menu. The technological advancement also played an important role in the evolvement and formation of fast food industry which is expected to further evolve. The fast food industry is expected dominate the traditional food market in the future due to their increasing adaptability by consumers. Hence, it is identified that the success of fast food industry depends upon the quality, hygiene, innovation, and variety of items on their menu.


Exhibit: 1

Political The political factor that are affecting the fast food industry vary from country to country. The fast food restaurant need to adopt the evolving trend of hygiene and quality in the fast food industry. There are regulations by regulatory departments about wages, hygiene and quality which the fast food restaurants should maintain in order to remain in the industry. These regulation are vary from countries to countries. Government could also pressurize the fast food restaurants to include healthier items on their menus which restaurants avoid because this will increase the cost of goods for these fast food restaurants and decrease their profit margins.
Economic The economic factors plays a vital role in influencing the fast food industry. The availability of variety of items on the menus of fast food restaurants including the low price items will enable the restaurants to survive in the time of recession as well. In US alone, 200,000 fast food restaurants are feeding 50 million people approximately on daily basis. The fast food industry is growing at the rate of 2.5% annually and it is expected to develop more with the increasing demand and trend of fast food among the consumers.
Social Health and lifestyle also influenced the social factor in the fast food industry. Now people focus more on hygiene and quality of the food. In past, the fast food industry remained in the limelight of criticism because of their targeting young children. Obesity is also one of the factor that now people use prefer quality and low calories food which is now evolving the trend in the fast food industry.
Technology Technological factor also played an important role in evolving the fast food restaurants. The machine which are now introduce in preparing and cooking foods are technologically advanced which save time, human labor, electricity and gas. These technological advancement reduce the costs for fast food restaurants which in return increase the profit margins of the restaurants.

Exhibit: 2

Strength:1.        Adaptability of fast food restaurants according to the customers need.2.        Menu with variety of products.3.        Increase in demand for fast foods. Opportunities:1.        Increasing trend of consumer towards fast food industry.2.        Quality improvement is a focus by the existing fast food industry.
Weakness:1.        Lack of hygiene and quality by many fast food restaurants.2.        High calories food.3.        A root cause for obesity. Threats:1.        Government regulations to maintain hygienic and quality foods.2.        Government regulations to increase the minimum wage rate of labors.
Share This


Save Up To




Register now and save up to 30%.