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Human Costs Are Built Into an iPad - Case Study Example

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The case study "Human Costs Are Built Into an iPad" presents the restaurant industry. Restaurant industry carries a unique characteristic of serving a combination of product and service. For the purpose, the restaurant industry is being considered a component of hospitality in the industry…
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Human Costs Are Built Into an iPad
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Download file to see previous pages The paper shows that changing the lifestyle of young generations has also played a considerable role in the growth of the industry (Report Linker, 2013).
Industry growth is characterized by following dominant factors of increasing urbanization; increasing the number of working parents leading to reduced cooking time at home; and changing lifestyle. Mobile food stalls and fast food service providers are expected to grow at the fastest pace mainly due to time and price benefits. Mobile food service is forecasted to outdo $2.5 billion by 2017.
The attraction of China to the world requires no emphasis. Most recently World Bank has raised the economic growth forecast for the year 2013 to 8.4% as compared to forecast growth of 8.1% issued in Oct 2012 (China Daily, 2012a). Though the restaurant industry is not only dominated by the economic growth 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 the catering subsector in 2012. The restaurant industry reported 16.5% of steady growth in revenue in the last five years. Opportunity in the Chinese restaurant industry can also be gauged from high fragmented characteristics 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 for only 3.0% of revenue in 2012 (IBIS World. (2012).
With the above statistics giving a highly attractive picture of global growth as well as regional hot cake China in the restaurant industry; the underlying report develops an assessment of the Chinese external environment for restaurant launching. The assessment is aimed to prepare homework grounds for the fast-food restaurant to launch in China.  ...Download file to see next pagesRead More
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