THE UK FAST
FOOD INDUSTRY
GROUP B
Why the UK?

Easily identifiable

Different cultural tastes have a large
impact on the global success of
multinational chains at national level
MAIN TRENDS
Growth in 2000 represents an increase
of 4% compared to 1999
 Growth is forecasted at the same rate in
2001
 Predicted steady overall growth rate
until 2005

Segments and Main Players
Sandwiches: Greggs,Thurstens, Subway
 Burgers: McDonalds, Burger King
 Pizza: Pizza Hut
 Chicken: KFC
 Fish and Chips
 Indian or Chinese Takeaway

Industry Analysis
P.E.S.T Analysis
 Five Forces Frame Work

P.E.S.T. Analysis
POLITICAL
 Health and Safety Guidelines
 Labelling of GM Foods
 Animal rights campaigns
 1998: BSE

P.E.S.T. Analysis
ECONOMIC
 Low set up costs
 Franchising facilitates set ups
 Support from major suppliers
 Growing market
 Perceived value for money
 Increasing disposable income

P.E.S.T. Analysis
SOCIAL
 Busy lifestyles
 Healthy Eating and Obesity
 Increased Vegetarianism
 Homogeneity
 Social Activities

P.E.S.T. Analysis
TECHNOLOGICAL
 Investment in technological innovations
 Computer ordering (till system)

FIVE FORCES ANALYSIS
THREAT OF ENTRANTS
 Setting Up
 Product Differentiation

FIVE FORCES ANALYSIS
THREAT OF SUBSTITUTES
 Convenience Shops
 Mid-range restaurants
 Pre-cooked food
 Other social activities
 Health food shops

FIVE FORCES ANALYSIS
POWER OF SUPPLIERS
 Farming Industry
 Worldwide market of suppliers
 Alliances

FIVE FORCES ANALYSIS
POWER OF BUYERS
 Consumers
Little brand loyalty

FIVE FORCES ANALYSIS
COMPETETIVE RIVALRY
 New entrants likely
 Price Wars
 Overall demand is increasing

The Future?
Strong development in market growth
 Nutritional products come in strongly
 Other niche foods – “smaller world”
