fast food industry
Post on 18-May-2015
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- 1. Fast Food Industry
- Ianne Patrick Santiago
- Marivic Mariscal
- Michael Lualhati
- Jay-ar de Castro
- Chaofan Zhu
2. Industry Background 3.
- Prepared and served quickly in a restaurant.
- Inexpensive foods.
- Begins on the mid-twentieth
- In the Philippines, fast-food restaurants specialize fried chicken, french fries, burgers, spaghetti and a beverage.
- The largest fast-food industry in the Philippines is the Jollibee food corporation.
- Jollibee Corporation is composed of several fast foods chains like Jollibee, Chowking, Greenwich, Red Ribbon and Mang Pepe's.
- Quick Service Restaurant or QSR
Definition 4. Fast Food Operation 5.
- Nationwide market coverage
- Caters to all ages / broad market segment
- Slow service vs. commitment to quick food preparation
- Menu is limited to the products the store offers
- Lack of food stock
- Space for fast food is small
- Capacity is 100 sq m at the minimum
- Cleanliness of the store sometimes is not properly maintained due to underman staff.
Scope and Limitations 6.
- Regulated by the Department of Trade and Industry.
- RA 7394 or the Consumer Act of the Philippines.
- Department of Health and Bureau of Food and Drugs
- According to Omana (2005), the fast-food market is dominated by the Filipino-owned Jollibee Foods Corporation with 52% market share.
- It is being followed by American food brands like McDonalds, Wendys, Burger King, and KFC.
Total Industry 7. Key Player / Brands Jollibee Food Brands 8. Market Structure 9.
- Population growth rate more than 4% per year.
- Consumer preference:quick, quality, clean, convenient, and affordable dining experience.
- Customization products (e.g. rice meals for Filipinos, potato fries for Americans)
- 3-8% annual growth rate in the Philippines
- Average annual income of Php 62,000 for poor families and Php 268,000 for rich households.
Market Structure - Demand 10.
- Status Domestic Fast Food:
- Entrants of foreign cuisine (e.g. Asian, European, Western)
- Jollibee as market leader for Philippine Fast Food
- Jollibee branches in other countries (Middle East, North America, Southeast Asia)
- Chowkings expansion abroad
- Improving food and service quality over time
- Expansion by opening more stores
- Product Development
Market Structure Demand(cont.) 11.
- Mixture of local and foreign brands:
- Jollibee (operated by Jollibee Foods)
- McDonalds (locally controlled by Alliance Group)
Market Structure Supply Sources: Annual Reports from JFC and AGIand corporate websites. 12.
- Rice importation
- Other products
- Largest index of value among other industries
- Continuous increase in population
- Sales growth of leading brands
- Business expansion
Market Structure Supply(cont.) 13.
- Cost and Prices:
- Ala-carte meals at Php 50-150
- Combo meals at Php 82 on the average / Premium items at Php and above
- Factor goods (Source: Bureau of Agricultural Statistics, 3/2011)
Market Structure Cost and Prices Commodities Average Price (in Php) Potatoes 60 / kiloGround Beef 240 / kilo Well-Milled Rice 35 / kilo Cooking Oil 54 / liter Dressed Chicken 130 / kilo 14.
- Average of 100 seats for dining customers
- Number of Consumers: 200 pax / branch / day (at 110 sq. m store size)
- Number of Transactions: 100 orders (from 11AM-2PM)
- Number of Meals per Transaction: two (2) meals
Market Structure Capacity Utilization Source: Mang Inasal Baclaran branch 15. Financial Structure 16.
- Financial Performance
- Jollibee Foods Corp grew a net profit last year by 16 percent to P3.09 billion
Financial Structure 17. Financial Structure 18. Strengths , Weaknesses, Opportunities and Threats 19. SWOT Analysis
- Quickest Serving Time Among Other Food Industry
- Cost Saving / Systematic Food Preparation
- Option to Deliver Food to Houses, Offices, and Other Establishments
- Wide-Range of Food Options/Choices
- Customization of Meal Servings Tailor-Fit to Consumers Appetite
- Positions in Strategic Location in Populated Areas
- Flexibility on Preparing Food Time
- Product Development for New Offering Takes Too Long / Does Not Change Products Often
- Known to Serve Unhealthy Meals
- Limited Menu Offered to Consumers
- High Employee Turnover (Operation)
- Growing Philippines Economy per Capital
- Continuous Products and Service Expansion
- Adaptation on Products and Services to Culture and Tradition
- Consumers Look for a Healthier Lifestyle
- High Number of Foreign Companies Entering the Fast Food Market vs. Local Brands
- Non-Compliance to Sanitary Standards
20. Strategic Trends 21. Current Trend for Fast Food 22. Strategies Strategies Strengths / Weaknesses Addressed Opportunities / Threats Addressed 1. McDonalds Made-For-You Strengths:1. Quickest Serving Time Among Other Food Industry2. Flexibility on Preparing Food Time Opportunity:Adaptation on Products and Services to Culture and Tradition Threat:High Number of Foreign Companies Entering the Fast Food Market vs. Local Brands 2. Freebies and Budget Meals (All Brands) Strengths: 1. Customization of Meal Servings Tailor-Fit to Consumers Appetite 2.Cost Saving / Systematic Food Preparation Weakness:Limited Menu Offered to Consumers Opportunity:Continuous Products and Service Expansion 3. Healthy Meal Offerings Weakness:Known to Serve Unhealthy Meals Threats: 1. High Number of Foreign Companies Entering the Fast Food Market vs. Local Brands2. Consumers Look for a Healthier Lifestyle 23. Outlook and Summary 24.
- Fast food industry will continue to grow
- Extreme popularity of dining outside
- more than 18% of total food expenditure went toward food for consumption outside of the home (Agri-Food Past, Present & Future Report2007)
- Popularity of food retailers in malls and shopping centers than shops-on-site
- Filipino consumers are by nature price-sensitive
- best value for money (value menus)
- Popularity of items sold for around PHP25 or PHP50
Outlook / Summary 25.
- Fast food industry has helped to transform not only diet, but also landscape economy, workforce, and popular culture
- Whole experience of buying fast food has become so habitual
Outlook / Summary 26. Conclusion and Recommendation 27.
- Opportunity for economic growth
- Rapid increase of opening new food chains
- Exploring the international market
- helps advertise our country that we offer good food
- markets tourism and build awareness
- increase sales of the company
- strengthens GNP
Conclusion And Recommendation 28.
- Rising concerns for health and wellness
- Offer nutritional items on the menu
- Possibility of creating a policy that will address the health and wellness concern
- Positive brand - promote an ambience of being caring to customers
Conclusion And Recommendation 29. Thank You