The Start-Up of a Healthy Fast Food Chain - Research Proposal Example

Research Proposal The Perspective of Opening a Healthy Fast Food Chain TABLE OF CONTENT Introduction 3 Objectives 3 Literature Review 3 Background Information 3 Fast Food Opportunity Rationale 4 Fast Food Industry 5 Success Factors in the Fast Food Industry 6 Healthy Foods 7 Methodology 8 Results 9 Analysis 9 Conclusion 9 Reference List 11 Introduction A fast food restaurant has fast food cuisines and limited table services. In most of these restaurants, the menu consists of meat sweet diets. The food is usually cooked in bulk or large quantities and then kept hot. When the food is ordered, it is packed and availed to the consumers. Most fast food restaurants also offer seating facilities. Take-aways are also common in the restaurants. Kim and Choi (2006) states that the fast food restaurants are in most of the instances part of a chain of restaurants. Franchising is also common with the major industry players relying on this practice to be able to penetrate new markets and expand their consumer base. When franchising is done, standardized ingredients are provided. In other instances, partially cooked foods are also supplied to the franchises or branches through a controlled chain of supply. This is done to ensure that the franchises are able to sell almost the same type and kind of foods (Carling, 2002). The menu in most of the franchises is the same with only slight alteration being done to meet the specific need of the target market. The concept of fast food restaurants came from the United States of America. Due to the variation in the fast food concepts and the complex nature of the industry, it is very important to understand the perspectives of the industry before setting up a healthy fast food business. This proposal explores the perspectives of opening up a healthy fast food restaurant. Objectives This study aims at unearthing the various perspectives as well as factors to be taken into deliberation when establishing a healthy fast food restaurant. This is done in order to understand the factors that may determine whether a fast food business becomes a success or failure. Literature Review Background Information Liedman et al. (2001) defines fast food as food that is prepared and then served quickly at various restaurants and foods outlets popularly referred to as fast food restaurants or quick food stores. In the fast food restaurants, food is served after ordering with minimal table services being offered in the restaurants. The food is precooked and then kept hot using various appliances. When a customer visits the restaurant and orders the food, it is packed and then handed to the customer who may decide to sit and eat the food in the restaurant or go with the food as a take away. According to Schlosser (2001) say that fast food restaurants are becoming common in most countries. The trend has been caused by the decision by major fast food players like McDonalds and KFC to franchise their outlets. Apart from the outlets that are opened by these major industry players, there are smaller outlets that also deal with the fast foods. Freeman (2007) says that the smaller and simple fast food outlets continue to play a vital role in the fast food industry by serving the needs of a sizable market segment. Simple stands and kiosks also deal with the fast foods. Due to the fact that the startup capital for establishing a simpler fast food outlet is relatively small, individually owned restaurants are springing up quickly. This trend is mostly witnessed in areas with medium income populations. In some countries like Pakistan, the restaurants are generally placed where the consumers can come and sit to take the food that they have ordered (Luxenberg 2005). In such countries, the population prefers taking their food within the restaurant premises rather than going with the food as take away. In America and other western countries, take away is preferred by the population since they are seen to be more convenient that sitting in the restaurant to take the food that has been ordered. Fast Food Opportunity Rationale According to Bowman and Vinyard (2004) the fast food industry has continued to grow over the last years. The growth has relied heavily on the ever changing ways of lifestyle as well as the growth of the population in several parts of the world. The target age group for the fast food industry has grown by five percent annually and this has provided ready market that encourages new entrants and allows the existing industry players to expand their restaurants in order to cater for the needs of the consumers. French et al. (2001) states that with the hectic lifestyle that is being lived today, the populations have resorted to time saving products like the fast foods. In the past few years, there has been a growth in the fast food expenditure. More people are resorting to these foods. There has been a demand for convenience and this has drove more people into looking for readily available, quick and convenient meals. Most people no longer want to take or spend more time cooking or preparing their foods at home. The current population does not want to travel to pick up meals or wait in the hotels and restaurants when the meal is being prepared. Due to this change of trend, fast foods have been heavily relied on. New fast food providers have relied on this new trend to be able to come up with products that are intended to save the customer’s time. Another trend that has led to growth in the fast food sector is the need for the consumers to combine their meal time with other life activities that include shopping, travelling and working. This has led to increased need for the fast foods and the fast food restaurants where they can be able to pick up the food and continue with other activities that they are involved in while also taking their meals. Fast Food Industry The fast food industry is popular in almost all the world countries. This is owing to the element that everyone is looking for convenience. The industry is a source of innovation with the players striving to come up with products which are more convenient and add value to the lives of the consumers (French et al. 2001). In most of the counties, the presence of major fast food restaurants like McDonalds, Pizza Express and KFC has led to the development of upscale fast food restaurants that target the high income segment of the market. Majority of these multinationals modify their menus to meet the desires and flavors of the locals. This is done so that the cultural and ethnic values of the market in the countries of operation are taken care of. Franchising appears to be the most preferred form of entering new markets for most of the fast food multinationals. The multinationals restaurants are not the only source of fast foods on most of the cities. Galore and Walker (2003) says that many regional as well as local chains have come up to compete with the multinationals. The local fast food stores are at times preferred by the customers who view the multinationals to be expensive since they are modeled to cater for the high income segment of the market. Moreover, the local and regional stores are able to provide fast food items which are more appealing to the local as well as regional habits and tastes In most countries, the multinationals fast food stores like KFC are frequented by the high income earners and are seen to be more glamorous and cleaner than the local fast food eateries. Majority of the middle income earners normally opt for the local eateries. Such eateries offer low cost foods. Due to the fact that the middle income segment forms the biggest chunk of the fast food eaters, the local eateries are able to compete well with the multinationals in the dynamic fast food market. Success Factors in the Fast Food Industry Schlosser (2001) states that each and every start up fast food business needs to consider several factors that influence the fast food market and industry. Galore and Walker (2003) puts the conception of a winning concept as one the major determinants of whether a business will succeed in the fast food industry or not. A well-defined concept gives a business a good chance of long term success. Before venturing into the fast food industry, there is the need to come up with winning principle which shapes the restaurants. A winning concept improves the chances of success in the fast food industry. Before venturing into the fast food industry, there is the need to ensure that longevity of the business is maintained. Longevity can be defined to be the art of being able to maintain the success that the business is experiencing for a long time. This occurs while adjusting to the changing needs of the markets. It also requires the buying of the customer habit to be able to fully meet their needs. Freeman (2007) says that for an entrepreneur to successful open and run a fast food restaurant, he needs to maintain the success of the business for a long duration of time. Healthy Foods Schlosser (2001) says factors such as market appeal; consistency, menu pricing, expandability and location are among the major factors that influence the operation of fast foods in an area. Despite this being the case, the issue and concept of healthy living has come into play and is argued to be influencing the consumption of fast foods. The consumption of fast foods like fries and hamburgers has resulted in several health concerns. Carling (2002) says that fast food has driven the global epidemic of diet related issues and health concerns. The fast foods are known to result in negative effects such as cardiovascular disease, cancer, asthma and liver problems. The fast foods are very affordable and convenient. However, regular indulgence and eating of the fast foods causes several health problems. This is in addition to the fact that the foods have low nutritional value and high fat. Freeman (2007) says that a typical fast food package consists of meals which have very high fat and calories. It is due to this high calorie and fat level that they result in weight gain, cardiovascular problems and obesity. Statistics show that the consumption of the fast foods is causing a very dangerous trend in the population. Due to this, there is the need to come up with menus that will not only be convenient and affordable but will also have minimal health implications on the consumers. A study that was conducted by Carling (2002) among the consumers of fast foods in America indicated that the eating the foods more than twice per week results in weight gain. Moreover, a study by Lin et al. (2009) indicated that living near the fast food restaurant is associated with 5 percent likelihood of being obese. It is due to these concerns that major industry players are striving to ensure that they offer healthy diets in order to remain relevant in the market. The health concerns have greatly reduced the sale of the fast food especially with campaign being run to try to persuade the major players to stop targeting the young people with their unhealthy diets. Methodology In order to carry out this research and to meet the stated objective of the study, questionnaires and review of existing literature are used. The existing literature is obtained from relevant journals and sources that deal with the subject of fast food businesses and the associated health concerns that may have impact on the operation of the endeavor. The journals that are used in the study are peer reviewed journals and empirical studies that will offer the much desired data on the subject matters. On the other hand, questionnaires are used to understand the consumer perspective on the issue of healthy fast food and the health concerns. The questionnaires will help in understanding what the consumers take to be healthy foods. Each of the respondents will be given the questionnaires to answer after which the data that is collected from the questionnaires will be grouped and analyzed. Results Fast foods are very popular among various populations. The reason why these foods are preferred due to the fact that they are convenient and they allow the consumers to save the time that is spent on meals (Schlosser, 2001). Due to the increasing demand for the fast foods, various businesses that deal with the fast foods have been set up to compete with the multinational fast food restaurants. Despite the fact that consumers prefer convenient meals, they are also concerned with the health implication of the foods. Most of the consumers define healthy food as the foods that are nutritious and have low calories and fats. Analysis The data from the reviewed literature and the results from the questionnaires are analyzed to help answer the research questions. Majority of the consumer of the fast food are aware of the health implications of the fast foods. Most of the consumers have indicated that if they had a choice between the readily available fast food and the healthy fast food, they would opt for the healthy fast foods. This therefore implies that when setting up a fast food business, the menu should consist of low in fat and calories foods (Lin et al. 2009). Conclusion Fast food eateries are very popular in various locations and regions of the world. This is due to their convenience. Factors such as price, longevity, location and expandability affect how a fast food restaurant operates. However, the health concerns have also influences the operation of the restaurants. In order to successfully establish a healthy fast food restaurant, foods that are nutritious and are known to have low calories and fats should be incorporated in the menu. Other factors such as pricing, location and longevity should also be considered. Reference List Bowman, S. A. and Vinyard, B.T. 2004, “Fast food consumption of US adults: Impact on energy and nutrient intakes and overweight status,” Journal of American College of Nutrition, Vol. 23, pp. 163-168. Carling, M. 2002, “Fast Food and Urban Living Standards in Medieval England" in Food and Eating in Medieval Barbie, pp. 27–51. Freeman, A. 2007, “Fast food: oppression through poor nutrition". California Law Review, Vol. 95, No. 6, pp. 2221-2259. French, S.A. et al. 2001, “Fast food restaurant use among adolescents: Association with nutrient intake, food choices and behavioral and psychosocial variables,” International Journal of Obesity Related Metabolic Disorders, Vol. 25, pp. 1823-1833. Galore, S. R, and Walker, C. 2003, “Brief communication: dietary habits of first-year medical students as determined by computer software analysis of three-day food records,” Journal of American College of Nutrition, Vol. 12, pp. 517-520. Kim, H.Y. and Choi, S.H. 2006, “A survey of the behaviors on fast food restaurants,” Korean Journal of Dietary Culture, Vol. 11, No. 1, pp. 71–82. Liedman, M. et al. 2001, “Dietary fat reduction behaviors in college students: relationship to dieting status, gender and key psychosocial variables,” Appetite, Vol. 36, pp. 51-56. Lin B. H, et al. 2009, America’s Eating Habits: Changes and Consequences. USDA, Washington DC. Luxenberg, S. 2005, Roadside Empires: How the Chains Franchised America. Viking, New York. Schlosser, E. 2001, Fast Food Nation: The Dark Side of the All-American Meal. Houghton Mifflin Books, New York. Read More