FAST FOOD INDUSTRY

Fast Food Industry in the UK

Introduction1

Overview of the UK Fast Food Industry1

Market Structural Analysis2

Factors Affecting the Fast Food Industry3

Micro and Macro-environmental Analysis of Fast Food Industry4

Porter's Five Forces4

Threats of New Entrants5

Suppliers' Power of Bargaining5

Buyers' Power of Bargaining6

Industry Rivalry6

Threats of Substitutes7

PESTEL Analysis7

Political Analysis7

Environmental Analysis8

Social Analysis9

Technological Analysis9

Economic Analysis10

Legal Analysis10

Conclusion11

References12

Fast Food Industry in the UK

Introduction

The paper aims at conducting comprehensive analysis of the fast food industry in the UK. The paper examines market structure by identifying five largest firms of the fast food industry. The paper studies market trends and key statistics in order to identify important factors that affect the fast food industry. In addition to this, the paper undertakes micro and macro-environmental analysis of the UK fast food industry via different matrices. Finally, the paper provides conclusion on the overall analysis of the UK fast food industry and its future prospects.

Overview of the UK Fast Food Industry

UK is one of the most accessible and easily identifiable countries that rank higher among the world's largest fast food consumers (Cities Institute, 2013, p. 12). Food market of the UK is the leading employer that creates employment and career opportunities for approximately 400, 000 people. As of 2012, total worth of the UK food market is € 88.4b with more than 6, 000 businesses. Figure 1 illustrates total value and size of the UK food industry (Thomas, n.d., p. 5).

Figure 1: Food Market of the UK (Thomas, n.d., p. 5)

Market Structural Analysis

Success of the UK fast food industry is well associated with vibrant colours of cultural diversity, tastes and flavours, which have played eminent role in the national and global success of different multinational chains (International Markets Bureau¸2011, p. 9). According to a recent study conducted by Mintel (2013, p. n.d.), the UK fast food industry is sub-divided into two main segments including independent and chain services. Market analysis showed dominance of independent players in the UK fast food industry, who mainly operate fried chicken outlets, sandwich shops or takeaways (Euromonitor, 2013, p. n.d.). Nonetheless, their marketplace has been shared by steady increase in the chained outlets. According to International Markets Bureau (2011, p. 9), UK's fast food industry is considered among Europe's most developed industries, where small number of larger corporations dominate the market. The fast food industry is led by major players in five broad categories, as follows:

Burger King and McDonalds - Burgers

KFC - Chicken

Subway and Greggs - Sandwiches

Pizza Hut - Pizza

Chinese and Indian - Takeaways

Fish and chips

In the UK, fast food industry is based on competitive market structure with an ever continued price war and brand variations (International Markets Bureau, 2011, p. 8). In accord with the market analysis, every member of the UK fast food industry is engaged in efforts to equally respond to changing eating habits and consumer trends by creating healthier ingestion options. Over the past five years, fast food market has undergone considerable structural changes, for instance, market competition has become fierce and greater in scope by expanding boundaries beyond traditional fast food chain ...