Characteristics Of The Fast Food Sector Business Essay

Characteristics Of The Fast Food Sector Business Essay on that point is a number of truehearted diet posts in Srilanka and turbulent f be waivers in capital of Sri Lanka can be successful over other disruptive sustenance expirations in other areas of srilanka because Colombo is the commercial metropolis and capital of Srilanka with a large number of busy population. Most of rich large number live in Colombo as there is easy nettle to everything.Colombo is divided into more than than 10 parts for easy identification that are colombo1, Colombo 2 colombo7 Colombo 12. Colombo 1, 2,3and 7 are the ordinary destinations for high profit seeker devalued aliment exposelets as there is a large number of people who dont care price.In Colombo, more or less devalued sustenance issuances tar f etc. over upper class upper middle class people only and trade in junk viands and beverages which contain chemicals that injurious to health. Although, and some target everybody and share sanitary nutrition for thought and beverages. So, there is a deficit of the high role lush regimen government issues which focus everybody and dole out inexpensive and healthy crossroads. There is a marketplace that can be appealed.Research objectiveThis explore bequeath look into the internal and external barriers and find out ship canal and means of overcoming those identified and potential barriers for succeeding. Major objectives of this research as fol subalterns and segmented under 3 areas for better understanding and explanation.Major challenges when go bading up a new straightaway nutrient dismissal and to surviveCurrent trendsUnique hot selling solid forage and beveragesOther international and local steady solid regimen blades in ColomboPeople attitudes towards fast foodPoor Employee retentivity and satisfactionUnnecessary monetary valuesBenefits of selling healthy food and beveragesBenefits to societyBenefits to the outlet it egoFinding possib ility of selling graphic symbol and healthy fast food and beverages at low pricesIdentifying up-to-the-minute healthy fast food and beveragesIdentifying market places that sell quality ingredients for healthy food and beverageResearch backgroundMost of the hotel restaurants are situated in Colombo 1, 2, 3,4and 7 including 5 star hotels. There is a number of fast food brands that are Belly Buster, Belliniss, Bros T, Mr. Chicos Texas, Nandos, Deli market restaurant, eat Mor, Dominos Pizza, Hotel De Hijra, Mc Donalds, Hotel De Pillawoos, Pizza Hut, KFC, Crescat Boulevard, Majestic city food court, Excel world Food Court, etc.Most of the hotel restaurents are diversified and they sell fast food.So, there is a huge competition to attract customers and this has withdraw to selling whatsoeverthing to make profits.Research problemMost of the fast food outlets are catering upper class and upper middle class (selling non afford competent fast food) and selling non-healthy food beverages. No fast food outlet in Colombo seems to get off the current pattern. So this situation will be costly enough to enter this byplay employ a research with a new theme like quality healthy food and beverages to everybody. If there is a possibility of starting up a new fast food outlet to outlet affordable quality and healthy fast food and beverages, how good it is.People in Colombo or customers deprave those highly priced and non-healthy food and beverages. Maybe, they are already in mixtureed of the naughtily effects of eat non-healthy junk food and the reason is they have no other option like, high quality fast food outlets which sell affordable healthy products.So, if I could develop recipes for making healthy food and beverages at low prices and buy fresh vegetables and fruits at low prices it will be quite realistic to sell affordable healthy food and beverages using strategies. In order to achieve this aim those issues need to be addressed.Research methodologyThis aim wil l take away qualitative research with the use of questionnaires, observations and interviews and to refer and study profitable and successful fast food outlets, success stories, etc.The questionnaire is designed for measuring the customers attitudes, perception and port when choosing the fast food outletsOne or twain successful fast food outlets managers and its employees (especially waitresses and waiters) and integrity or two fast food outlets managers and its employees in fast food outlets which compete to get an adequate amount of maceraters would be interviewedA hardly a(prenominal) fast food outlets in particular areas which attract more people than others and what people most consume at each fast food outlet and what the busiest day of each week is for each fast food outlet will be observed.Research toolsData collection methods and instruments- questionnairesInterviews (only selected personnel)ObservationsCharacteristics of the fast food sectorThe fast food sector is o ne of the sectors of the food service industry. diligent service- food and beverages need to be served very quickly. There should non be too much waiting to serve products.Ease of access- fast food outlets should be easily accessible.Flexibility- fast food outlets should be ready to accept returns or any customer request to change what they have already bought.Limitation of the studyAs mentioned below, there were limitations and difficulties much(prenominal) asVery limited local resources were available for referenceSome waiters and waitresses were reluctant to be interviewed.There are a number of fast food brands in Colombo and therefore, some of them could not be studiedChapter 1 summaryThis is initially more focused on the introduction and background of the research by giving a brief introduction to the research. At the middle and latter parts of the chapter, it will elaborate the research objectives while taking approximately the nature of the fast food sector and research l imitations. It has also demonstrateed the significance and the gravity of the research and the research problem.Chapter 2 literary productions reviewThe term fast food relates to food that can be prepared quickly. Most of this popular type of food availed in packaged form called takeaways. The fast food industry has its roots in the for sale stands, that were part and parcel of ancient and East Asian societies. (Gaynor Borade, 2012)The concept of fast food is broadly associated with urban development. Fast food outlets today are elaborate quick service outlets. The franchise operations have generated restaurant chains that offer regularize meals across the globe. On account of a low capital requirement and popularity of fast food, fast food restaurants and drive through outlets are common end-to-end the world. Also known as sit-ins.These restaurants cater to the dry food demands of the younger generation, extremely tight adult work schedule. (Gaynor Borade, 2012)Today, some fast food outlets sell dangerous food which contains chemicals that are injurious to health. Favorite chemicals used as part of the food making process are -titanium dioxide(found in dressings), azodicarbonamide (found in some subway breads),sodium phosphate(found in coffee in fast food joints)(Uttara Manohar,2012).Health problems that are brought on because of regular junk food eating-asthma, strokes, type 2 diabetes, cancer, colored disease, and cardiovascular diseases. (Uttara Manohar, 2012)I found that some ladies and gentlemen have taken step forward written articles about the bad effects of fast food to urge people who are in the dark. They propose healthy food and beverages.Does any of this sound appetizing? I think not. To indulge once in a while is all good after all you are human enough to have cravings. What you shouldnt do is indulge to a point where it qualifies as gluttony. accost yourself to healthy homemade foods using fresh produce instead, coupling low-sodium ingre dients and all-natural add-ons. Eat your favorite junk food meal twice a month, and not more. short-circuit the good word. (Uttara Manohar, 2012)Eating toss food now lead to obesity among most of youngsters and adults. (Uttara Manohar, 2012) So, needfully quality and healthy food beveragesAs a moderate of a recent health revolution, fast food chains and restaurants have started the integration of all possible food nutrition in their menu. Hamburgers and French hot up are probably the most famous fast foods, are nowadays made with the help of healthy low cholesterol fats, lesser oil, and whole stubble breads. Many hamburgers nowadays, have a high content of salads and vegetables in them and are made with sauces and prickles that are rich in vitamins. The fries are nowadays not deep-fried and have a low content of oil in them (Scholasticus K, 2010).Not only healthy food, Cleanliness hygiene issues are relevant to the premises, equipment and staff. Tidy premises, vivid uniforms and the use of protective gloves, for instance, can all have a positive effect on the perception of the food service operation as being clean and hygienic. (Cousins et al.2002)A fast food outlet which sells healthy products is identified social debt instrument and it can make profits as there are well educated and sensible people who have got by writing and becoming customers of the fast food outlet which sells quality and healthy food and beverages.StrategiesNormally, if any business needs to survive, it must develop strategies as the environment is always changing. There are marketing strategies, price strategies, etc.There are diverse pricing methods such as cost-plus, prime costing methods, backward pricing, rate of return pricing, profit per customer pricing, elasticity pricing and completion pricing(Cousins et al.2002).Marketing strategies, such as market segmentation, porter generic strategies. There are numerous Pricing strategies such as Loss leader, demand-based pricin g, etc.One of the major marketing strategies is market segmentation. Researching the market will facilitate the identification of consumers needs, wants, demands, goals and values as they relate to food and beverage products (Cousins et al.2002).there are many different ways to segment a market such as geographic, demographic, psychographic and behavioral segmentations.After well identifying all the market segments that we can approach with good products, we can be sure that our business will be successful as we can satisfy the customers needs with the right product and also we can then get customer allegiance which ensures continuation of the business.Price is the element of the meal experience that also relates to value (Cousins et al.2002). So, we need to ensure that there is strategic pricing where a high-priced product might not be perceived as a low quality product and also, a low priced product might not be perceived as a low quality product. Pricing strategies are so importa nt to get customer loyalty.Social responsibilityRecognizing social responsibility and being responsible for the welfare of the society can be ultimately a good strategy as there will be support from the society to keep the organization which has set a code of business and social ethics.Social responsibility objectives stress the ethical aspects of a food service organizations objectives. These include 1. Safety of products 2.working conditions 3.honesty for example, not offering or accepting bribes or other inducements, 4.equal opportunities and 5. Pollution and other environmental concerns (Cousins et al.2002).So, when we are rails the business ethically and abiding by law, the ethical society will give their vote for continuation of the business.To indulge once in a while is all right after all you are human enough to have cravings. What you shouldnt do is indulge to a point where it qualifies as gluttony. Treat yourself to healthy homemade foods using fresh produce instead, coup ling low-sodium ingredients and all-natural add-ons. Eat your favorite junk food meal twice a month, and not more. Spread the good word. (Uttara Manohar, 2012)Employee motivation and retentionTo succeed in any business we need a good staff or human capital that can be effective and efficient. Therefore, a fast food outlet must have appropriate recruitment and selection strategies, the right HR policy, and should keep the existing staff motivated to get the maximum productivity of them and prevent labor turnover.When it comes to motivation of employees, we need to well understand and institutionalize the current contemporary views and theories on motivation such as Elton Mayos the human relation movement,Rensis Likerts the four systems of management, Douglas McGregors theory X and Y, Fredrick Hertzbergs hygiene theory, Abraham Maslows hierarchy of human needs, Edgar Scheins the psychological contract and career anchor, Amitai Etzionis the managers power and workers power, Carrot and stick method, etc (CTH,2011). out of them, Maslows hierarchy of human needs and Hertzbergs two factor theories are well respected.Maslow proposed a hierarchy of universal human needs representing the order in which these needs plump motivators of human behavior. Human beings needs and desires are inexhaustible. As soon as one need is satisfied another appears to take its place. This is one of the most influential theories on motivation as it describes human needs and desires divided into sets or levels. The sets are physiological needs, safety needs, social needs, ego needs and self actualization.Hertzberg found that factors associated with the job environment such as compensation, supervision, working conditions, company policy, so on, create dissatisfaction and unhappiness on the job when they are inadequate they become dissatisfied. But removing the causes of dissatisfaction doesnt create satisfaction and it therefore doesnt motivate performance. Hertzberg called these factors hygiene factors (maintenance factors).Hertzberg found that the factors that motivate consists of opportunities in the job itself for achievement and growth such factors as recognition, achievement, advancement, responsibility, the work itself. He called these factors motivators.To start up a new fast food outlet other than buildings and equipment we need to understand corporate social responsibility that is ensuring that the fast food outlet sell quality and healthy products, the environment is not being polluted, etc , must have good strategies to win the competition and make more profits, and a great staff who can be productive.Chapter 2 summaryThis chapter is about literature reviews, various strategies, arguments and thoughts.At the beginning, it discusses origin of fast food outlet and at the middle it discusses healthy and non healthy fast food beverages and its effects with reviews. At the end, the current marketing strategies which are essential to survive are discussed and one of the crucial parts that need to be addressed to succeed a business is employee satisfaction and retention is discussed.Chapter 3Research methodologyThis chapter will discuss and emphasize on the methodology of this research study. Initially, formation and conceptual framework is illustrated and thereafter, it will discuss selection methods of data, reviving, identifying of variables.Afterward, study development is shown. After this, the realization and practice of this study comes under the sections of sample selection, data collection method, and data psychoanalysis and summarizing.Micro culture(internal)Internal culture for starting up a new fast food outlet and survivemonetary value enjoyment and employee retentionLocation, etc.Macro culture(immediate)Influence of politics, promotions, etc.Increase of fast food outletsPeoples attitudes toward fast food, etc.External macro cultural issuesOther competitive industriesInternational fast food brands, etc.Factors influencing sta rting up a new fast food outlet and survivingThe above segmented factors (micro culture, macro culture and external macro cultural issues) are being examined and assessed under organizational and national levels. possibility developmentThree hypothesis have been developed to study the impact of the variablesHypothesis 1 Micro culture-high initial cost, problem of decision employees and retaining them, poor localization and lack of customer attractions, competitors hot selling food and beverages will be the barriers to start up a new fast food outlet.Hypothesis 2 Macro culture- increase of low quality fast food outlets in Colombo and they are creating a bad picture amongst the existing fast food customers towards fast food outlets will result in difficulty of attracting customers and maintaining goodwill.Hypothesis 3 External macro cultural issues- international fast food brand outlets will do more promotional activities to attract more and more customers. As a result, the new fast food outlet will not be able to attract a plenty of customers.Operationalisation of variablesConceptsVariablesIndicatorsSource formHow to find answersfactors influencing starting up a new fast food outlet and survivingInternal culture for starting up a new fast food outlet and surviveCostInterviews with the fast food managersEmployment and employee retentionInterviews with the fast food managersRisksInterviews with the fast food managersHot selling fast food and beveragesInterviews with the fast food managers and questionnairesMacro culture(immediate)Increase of fast food outlets common opinion of the publicquestionnairesPolitical influenceCompetitors offers and promotionsObservations and Interviews with the fast food managersMarket placeInterviews with the vendorsExternal macro cultural issuesInternational fast food brands in srilankaInterviews with the international fast food brand outlet managers.Other competitive industriesMethodologySampling and selection10 customers of each o f the fast food outlets ( Dine Mor, Pizza Hut, Mc Donalds, KFC, Mr. Burger King ( situated in the Malay street of Colombo 2) are taken as samples to get answers for a few questions which are included in the questionnaire.Data collection methods and instrumentsA questionnaire is used to find hot selling fast food and beverages among different age groups and General opinion of the public towards the fast food outletsTwo or three successful fast food outlets managers including international fast food brand outlets and its employees (especially waitresses and waiters) and two or three fast food outlets managers and its employees in fast food outlets which compete to get an adequate amount of consumers would be interviewed to find answers for their cost of running the business, their classes of fittings and furniture, how they retain their employees, their hot selling products and how they interact with the public.Interviews are with vendors who sell quality ingredients for making health y food and beverages.A few fast food outlets in particular areas which attract more people than others and what people most consume at each fast food outlet and what the busiest day of each week is for each fast food outlet will be observed.Data analysisAs this is a qualitative research, this research would use deductive think method.Chapter 3 summaryThis chapter discusses methodology of the research study. The structure, variables or the framework is considered. Thereafter, methodology, sample and data collection methods are declared.Chapter 4Data presentation, Analysis and discussionThis chapter is about data presentation, analysis and discussion. Most of the weighting is given to primary data since there was not a plenty of secondary data. It focuses on decisions, discussion and analysis which cover hypothesis testing.FindingsData collected from the questionnaire40 people were given the questionnaire. The findings are as followsAll the 50 people recommended Dine mor, Pizza Hut, Mc Donalds and KFC and only 19 recommended Mr. Burger king.22 persons favorite fast food brand is Pizza Hut, 13 persons favorite brand is Mc Donalds and the rest 15 persons brand is KFCTheir favorite fast food/sFast food Number of the peoplePizza 50Hamburger 36Chicken submarine 41Veggie burger 37Fried chicken 29Other 23Other included fried potatoes, fried meats, etc.Their favorite beverage/s crapulence Number of the peopleSoft drinks like, Coca Cola 50Fruit juices (orange juice, avocado juice, etc) 50Ice cream 45Level of quality of the fast foods sold by the fast food outlets in ColomboNumber of the peopleHigh (KFC, Pizza Hut, Mc Donalds, Dine Mor) 50 copacetic (Mr. Burger king) 27Not satisfactory Time they consume fast foodNumber of the peopleAt morning 7At noon At evening 43Number of the people who like healthy fast food and beverages is 40** Dine mor, Mc Donalds and KFC appear to be popular fast food brands in Colombo. Their favorite fast foods include pizza, burger and fried chi cken. The people believe that level of quality of the fast food outlets (KFC, Mc Donalds, Pizza Hut, and Dine Mor) is high in Colombo. Majority of them consume fast foods at evenings. All of the people like healthy fast food and beverages.Information gathered from the interviewsCost-Average cost of the interviewed fast food outlets per month is more than Rs.300, 000 this figure includes production cost and general administration cost.-Initial cost to start a fast food outlet varies according to factors like, level of service, ambience, food and beverages, number of employees, etc.Risks-Food and beverages need to be processed in a quality setting otherwise they would be polluted.-Food and beverage production should be limited prior to the past experiences of selling.-employees would leave the organization if they are not well treated, etc.Employee retention-to retain employees there should be the right HR policy, effective employment of recruitment and selection strategies, reward sy stems, etc.Hot selling food and beverages-Pizza, burger, fried chicken, fried potatoes are amongst the hot selling fast foods and soft drinks like Coca Cola, fruit juices, ice creams are the hot selling beverages.Competitors offers and promotions-The competitors commonly use price reduction, buy one and get one for free promotion, free home delivery, etc.Raw material market place-prices of fruit and vegetables have been increased tardily and every market place tend to sell their products at higher prices. However, directly buying from the farmers is the cheapest way but this involves additional costs such as transportation, labor costs, etc.Information gathered from the observations-The busiest times for Mc Donalds were during 3.00- 6.00 pm-The busiest times for KFC were during 4.00- 7.00 pm-The busiest times for Mr. Burger King were during 4.00-7.00 pm-The above fast food outlets have been serving for a plenty of customers at the above mentioned time ranges.-Most of the customers tended to consume fried chicken, fried potatoes, pizza and burgers. So, they were the hot selling fast foods at that time.-the hot selling beverages were fruit juices and cool coffeeAnalysis and discussionAnalysis 1Hypothesis 1 Micro culture-high initial cost, difficulty of finding employees and retaining them, poor location and lack of customer attractions, competitors hot selling food and beverages will be the barriers to start up a new fast food outlet.-High initial cost, difficulty of finding employees and retaining them, poor location and lack of customer attractions are the barriers to start up new fast food outlets.-Starting up of a new fast food in Colombo does not involve high initial cost, difficulty of finding of skillful employees and difficulty of retaining them, difficulty of finding a place full of customer attractions and difficulty of making competitive fast food and beverages.-Therefore, it is possible to start up this fast food outlet in Colombo.Discussion 1High i nitial cost can be ignored due to that my budget is above the found average cost to run a fast food outlet in Colombo per month.Finding of skillful persons can be done using local sources such as recruitment agencies, newspaper advertisements, own website advertisements, etc.Retaining of them can be done as this research identified strategies such as motivation strategies, pricing strategies, etc.There were a number of places in Colombo which are full of customer attractions and a building can be taken on rent in such place in Colombo.Healthy fast food and beverages are going to be made with the peoples votes and so, these definitely have a market.Analysis 2Hypothesis 2 Macro culture- increase of low quality fast food outlets in Colombo and they are creating a bad picture amongst the existing fast food customers towards fast food outlets will result in difficulty of attracting customers and maintaining goodwill. increase of low quality fast food outlets and they are creating a bad p icture amongst the existing fast food customers towards fast food outlets result in difficulty of attracting customers and maintaining goodwill starting up of a new fast food outlet is not affected from increasing low quality fast food outlets in Colombo.-therefore, it is possible to start up this fast food outlet.Discussion 2Most of the interviewed and the questionnaires peoples attitude towards fast food is positive as they say that they do not consume fast food on behalf of every meal. They voted for healthy fast food and beverages this means a fast food outlet that sell healthy fast food and beverages can be started. This fast food has no bad effect from the people as they like fast food outlets which sell quality and healthy food and beverages.Analysis 3Hypothesis 3 External macro cultural issues- international fast food brand outlets will do more promotional activities to attract more and more customers. As a result, the new fast food outlet will not be able to attract a plent y of customers.-International fast food brand outlets do more and more promotional activities.-for starting a new fast food outlet, appropriate and competitive promotional activities were identified.-therefore, it is possible to attract a plenty of customersChapter 4 summaryPresentation, analysis and discussion of research findings were elaborated and at the akin time, it compares developed hypotheses in relation with findings.Chapter 5Conclusions and recommendationsThis researchs aim is to find possibility of starting up a new fast food outlet in Colombo. Therefore, this research looked into the internal and external barriers and found out ways and means of overcoming those identified and potential barriers for succeeding.When the following are satisfied it is possible to start up a new fast food outlet in Colombo.Starting up of a new fast food outlet in Colombo does not involve high initial cost, difficulty of finding of skillful employees and difficulty of retaining them, diffic ulty of finding a place full of customer attractions and difficulty of making competitive fast food and beveragesStarting up of a new fast food outlet is not affected from increasing low quality fast food outlets in ColomboFor starting a new fast food outlet, appropriate and competitive promotional activities were identified gibe to the research, therefore, it is possible to start up a new fast outlet in manta place, Colombo 2 which sells quality and healthy fast food and beverages.Recommendations-This fast food outlet should be open from 4.00-700 pm.-This fast food outlet should get star rating as soon as possible to prove its quality.-This fast food outlet should not sell soft drinks.-It should develop a menu of healthy fast food and beverages other than the current ones.-It should use more advertising to reach more customers.-It should sell fast food fried chicken, pizza, burger, etc without other ingredients which make people fatty.-It should have a good waste disposal system th at ensures protection of the environment.-It should build attractive exterior to attract customers-It should maintain goodwill with customersWord count=4468Reference listBooksCOUSINS, JOHN.FOSKETT, DAVID.GILLEPSIE, CAILEIN. 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