ECONOMICS

Economic concepts and Impact on Fast food Sector

Economic Concepts and impact on Fast food Sector

Scarcity

The concept of scarcity can be defined as obstacles faced by an individual in meeting their goal and needs, the needs of an individual are out of limit and if that person wishes to note his complete desire on the piece of paper strangely he won't be able to do that, this problem of not getting what you want is the most common problem of the economics faced by people all around the world

Goods and services produced in the world are out of limit however everyone in this world can desire for it but could not have them due to several reasons for example a housewife may want to have a big size new model refrigerator but could not afford it due to its high cost, a student wants to pursue his career from oxford university but could not do it because of limited balance in his father account and etc so you can clearly observed the presence of scarcity in all these situation, therefore it is said that choices will become less in case of scarcity.(Caribbean, M).

Impact of Scarcity on Fast food Industry

The popularity of fast food industry is no hidden secret, people from every age group loves to eat Fast food when available due to several reasons, plenty of varieties, easily available everywhere, easy to eat, required less time to cook and etc, due to this reason the fast food industry is one of those industry that has achieved phenomenal growth and success, despite of the phenomenal growth this industry is not without its share of challenges like economic challenge, political challenge, health issues and etc (www.franchisehelp.com).

The major challenge that has put the brakes on its growth is the availability of scarcity in the economic system; a fast food industry can face scarcity in following ways

Scarcity of food

The main ingredient of the fast food industry is food and if the industry is faced with its shortage or its purchase price increases than it will lead to scarcity of food in the industry, due to this scarcity the choices of buying quality food to cook will be reduced which will forced the industry to raise its prices of products, or to use low quality food, and its overall impact will be in declining of industry growth.

Scarcity of cost

As the prices of commodities are fluctuating in every part of the world so due to this the fast food industry faces the scarcity of cost as with the constant increase in prices of the commodities it is becoming difficult for the industry to purchase them at the high cost sell their product al market price but the dilemma that they cannot raise the prices of their product as it will reduce its customer nor it could decrease the quality of the food, so again due to the cost scarcity the business of food industry is affecting.

Scarcity of health

Day by day society is becoming health conscious due to ...