fast food industry

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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)
  • Domestic:
    • 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
  • Export:
    • Jollibee branches in other countries (Middle East, North America, Southeast Asia)
    • Chowkings expansion abroad
  • Projections:
    • 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)
  • Domestic:

Market Structure Supply Sources: Annual Reports from JFC and AGIand corporate websites. 12.

  • Imports:
    • Rice importation
    • Other products
  • Projections:
    • 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

  • Strengths:
  • 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
  • Weaknesses:
  • 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)
  • Opportunities:
  • Growing Philippines Economy per Capital
  • Continuous Products and Service Expansion
  • Adaptation on Products and Services to Culture and Tradition
  • Threats:
  • Consumers Look for a Healthier Lifestyle
  • Industrialization
  • 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


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