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Fast food case study - Essay Example

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For the purpose, restaurant industry is being considered a significant component of the hospitality in industry (Chew, Cheng, and Petrovic-Lazarevic, 2006). GIA report in the…
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Download file to see previous pages Furthermore, changing lifestyle of young generations have also played considerable role in the growth of the industry (Report Linker, 2013).
Industry growth is characterised by following dominant factors of increasing urbanisation; increasing number of working parents leading to reduced cooking time at home; and changing lifestyle. Mobile foods stalls and fast food service providers are expected to grow with fastest pace mainly due to time and price benefit. Mobile food service is forecasted to outdo $2.5 billion by 2017.
Attraction of China to world requires no emphasis. Most recently World Bank has raised the economic growth forecast for the year 2013 to 8.4% as compare to forecast growth of 8.1% issued in Oct 2012 (China Daily, 2012a). Though restaurant industry is not only dominated by the economic growth but the fact remains that growth is highly dependent on the economic as disposable income constituting the main driving factor. China’s full service restaurant industry (expectedly) generated 61.0% or $287.8 billion of the total $471.8 billion of catering subsector in 2012. The restaurant industry reported 16.5% of steady growth in revenue in last five years. Opportunity in Chinese restaurant industry can also be gauged from high fragmented characteristic with 2.8 million above restaurants in this industry in the year 2012. Further, four major players only accounted for 0.7% of total industry revenue while chain and franchising operations accounted only 3.0% of revenue in 2012 (IBIS World. (2012).
With above statistics giving highly attractive picture of global growth as well as regional hot cake China in restaurant industry; the underlying report develops assessment of Chinese external environment for restaurant launching. The assessment is aimed to prepare homework grounds for the fast food restaurant to ...Download file to see next pagesRead More
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