Industry Analysis of Fast Food Industry

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Updated: Mar 28, 2022
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Researches and industrial analysis is showing that Fast Food Industry is growing exponentially. As the demand for fast foods grows, it is imperative for the captains of industry to realize the external economic factors and how they affect the industry. Furthermore, it is also important to deal with the seasonality and understands what consumers prefer. It is quite evident that technological firms have upper hand compared to those which are still operating traditionally.


Industry Size and Growth Trends

Fast Food Industry generate its revenue from selling food. According to Wall Street Journal June 24, 2016, the Industry generated 198.1 billion in revenues in the United States and 570 billion globally- that is bigger than the economic value of some third world countries. The Fast Food Industry is experiencing growth every year going over the 2.5% growth rate that was predicted in 2014 and it is expected maintain overall growth (MarketLine, 2014)

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The Fast Food Industry is highly impacted by the changes in the economic environment. High unemployment affects Fast Food Industry as it was witnessed in 2008 when the country experience a down turn. Consumers opted to prepare their meals at home as a result shrinking the revenue turnover for the industry. Moreover, high interest rates and Taxation are also major contributors in fading away options and opportunities that can be realized by Fast Food Industry. However, due to Laws from the Federal Government, which is beginning to slow down the number of consumers in the US the Fast Food industry is now focusing to tape new markets overseas.


In the Fast Food Industry, like any other industry, there is a seasonal factor that drives the revenues up or down. According to the Blue Sky, 61% of Fast Food restaurants experiences a decline during holidays seasons and major events. During these major events, Fast Food consumers are less likely to patronize because the focus is on family and cooking at home.

Even though it slows down during holiday seasons, firms like McDonalds thrives very well because of its convenience while sit and dine restaurant like LongHorn loses revenues during this time. In summer, most Fast Foods restaurants are likely to generate more revenues, which caused by the increase in tourism in many cities. The winter season have big negative impact on restaurants that serves food compared to the ones that serves hot beverages such as Starbucks.

Technological Factors

It is quite clear that any Industry that is technologically advanced is untouchable and are thriving way beyond the expectations. Technology has given firms a competitive advantage over the ones that still stuck in traditional way of operating (MarketLine 2014). For instance, Starbucks and McDonalds have put in big screens in their stores to show case their menu, promote new products and shows what’s on the menu for the day.

Consumers are using their phones to preorder their food and customers are now preferring ordering food this way because it cuts waiting time of standing in the line. In addition, bigger companies have websites now that helps them to reach out and communicate with their clients and getting feed backs on what to improve.

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Fast Food Industry experiences law customer loyalty. As stated by the MarketLine of 2014, consumer preferences change all the time therefore, consumers have power to change from one store to another that satisfies their state. Also, consumers have become more healthy conscience they now prefer to buy organic foods. Organic foods prices are relatively, which makes it extremely challenging for restaurant to source these products at a relatively affordable prices. Lastly, factors like bad weather, traffic congestion, getting off late from work drives consumers to find alternatives such as ready-made food thereby affecting this industry.

Fast Food Industry is facing many challenges. As I discussed some of these challenges I realized that it is mangers duty to stay up beat in order to overcome these challenges. Not only challenges to the Industry, they are so much competition within the industry and it requires top quality management to run the businesses in order to stay in business.


  1. Global fast food market – industry analysis, size, share, growth, trends, and forecast, 2013 – 2019. (2014, Jun 11). PR Newswire Retrieved from
  2. Gilbert, G. R., Veloutsou, C., Goode, M. M., & Moutinho, L. (2004). Measuring customer satisfaction in the fast food industry: a cross-national approach. Journal of Services Marketing, 18(5), 371-383.
  3. Card, D., & Krueger, A. B. (2000). Minimum wages and employment: a case study of the fast-food industry in New Jersey and Pennsylvania: reply. American Economic Review, 90(5), 1397-1420.
  4. Bialik, C. (2013, Nov 01). Public cost of fast-food industry’s low pay remains unclear; researchers differ on whether raising wages will reduce the government benefits fast-food workers use to supplement their pay. Wall Street Journal (Online) Retrieved from

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Industry Analysis of Fast Food Industry. (2019, Jun 02). Retrieved from