THE UK FAST THE UK FAST FOOD INDUSTRYFOOD INDUSTRY

GROUP BGROUP B

Why the UK?Why the UK?

Easily identifiableEasily identifiable

Different cultural tastes have a Different cultural tastes have a large impact on the global success large impact on the global success of multinational chains at national of multinational chains at national levellevel

MAIN TRENDSMAIN TRENDS

Growth in 2000 represents an Growth in 2000 represents an increase of 4% compared to 1999increase of 4% compared to 1999

Growth is forecasted at the same Growth is forecasted at the same rate in 2001rate in 2001

Predicted steady overall growth Predicted steady overall growth rate until 2005 rate until 2005

Segments and Main Segments and Main PlayersPlayers

Sandwiches: Greggs,Thurstens, Sandwiches: Greggs,Thurstens, SubwaySubway

Burgers: McDonalds, Burger KingBurgers: McDonalds, Burger King Pizza: Pizza HutPizza: Pizza Hut Chicken: KFCChicken: KFC Fish and ChipsFish and Chips Indian or Chinese TakeawayIndian or Chinese Takeaway

Industry AnalysisIndustry Analysis

P.E.S.T AnalysisP.E.S.T Analysis Five Forces Frame WorkFive Forces Frame Work

P.E.S.T. AnalysisP.E.S.T. Analysis

POLITICALPOLITICAL Health and Safety GuidelinesHealth and Safety Guidelines Labelling of GM FoodsLabelling of GM Foods Animal rights campaignsAnimal rights campaigns 1998: BSE1998: BSE

P.E.S.T. AnalysisP.E.S.T. Analysis

ECONOMICECONOMIC Low set up costsLow set up costs Franchising facilitates set upsFranchising facilitates set ups Support from major suppliersSupport from major suppliers Growing market Growing market Perceived value for moneyPerceived value for money Increasing disposable incomeIncreasing disposable income

P.E.S.T. AnalysisP.E.S.T. Analysis

SOCIALSOCIAL Busy lifestylesBusy lifestyles Healthy Eating and ObesityHealthy Eating and Obesity Increased VegetarianismIncreased Vegetarianism HomogeneityHomogeneity Social ActivitiesSocial Activities

P.E.S.T. AnalysisP.E.S.T. Analysis

TECHNOLOGICALTECHNOLOGICAL Investment in technological Investment in technological

innovationsinnovations Computer ordering (till system)Computer ordering (till system)

FIVE FORCES ANALYSISFIVE FORCES ANALYSIS

THREAT OF ENTRANTSTHREAT OF ENTRANTS Setting UpSetting Up Product DifferentiationProduct Differentiation

FIVE FORCES ANALYSISFIVE FORCES ANALYSIS

THREAT OF SUBSTITUTESTHREAT OF SUBSTITUTES Convenience ShopsConvenience Shops Mid-range restaurantsMid-range restaurants Pre-cooked foodPre-cooked food Other social activitiesOther social activities Health food shopsHealth food shops

FIVE FORCES ANALYSISFIVE FORCES ANALYSIS

POWER OF SUPPLIERSPOWER OF SUPPLIERS Farming IndustryFarming Industry Worldwide market of suppliersWorldwide market of suppliers AlliancesAlliances

FIVE FORCES ANALYSISFIVE FORCES ANALYSIS

POWER OF BUYERSPOWER OF BUYERS ConsumersConsumers

Little brand loyaltyLittle brand loyalty

FIVE FORCES ANALYSISFIVE FORCES ANALYSIS

COMPETETIVE RIVALRYCOMPETETIVE RIVALRY New entrants likely New entrants likely Price WarsPrice Wars Overall demand is increasingOverall demand is increasing

The Future?The Future?

Strong development in market Strong development in market growthgrowth

Nutritional products come in Nutritional products come in stronglystrongly

Other niche foods – “smaller Other niche foods – “smaller world”world”