The limited-services food industry Essay Example

diversity and competitiveness.

According to IBISWorld (2007), key factors driving demand in the industry include household disposable income, population age structure, household income, convenience, value for money, and health and nutrition concerns (p.13). The report also highlights that market competition is primarily price-based, with franchised and multi-establishment operators competing among themselves and with full-service restaurants (p.14). Due to low growth rates in recent years, the industry is already in its maturity stage, with local markets experiencing saturation and price wars breaking out intermittently among competitors.

To maintain industry growth, there have been attempts to diversify product channels and communication strategies, which have included incorporating multimedia and technology and bundling products (Irvine et al, 2004; Berta, 2007; "Franchisors help operators face today's more demanding consumer ... ", 2005). Key market contenders include McDonald's Corporation at fourth place.

Starbucks Corporation holds the highest percentage at 58%, followed by Yum! Brands, Incorporated at 4.15%, Doctor's Associates Inc at 3.27%, and Jack in the Box, Incorporated and Wendy's International, Inc.

Companies such as Burger King Corporation and Domino's Inc. own market shares ranging from 1.7% to 0.8%.

McDonald's has been the leading company in the industry for a long time and is consistently ahead of its competitors. Other companies mentioned also have significant operations in Asia and Western Europe (IBISWorld, 2007, pp. 22-50). Despite the market being mature, there are still opportunities to develop new segments. McIver (2004) suggests that offering healthy food and drinks through limited-service formats has potential. Furthermore, Royle (2001) argues that establishing limited service industries can create employment opportunities with high skill or training requirements.

The limited-services restaurant industry is important for both revenue and social development. While international

expansion is the most profitable area for growth, local markets offer opportunities for diversification of products and services.

References:

Adair, Linda S. and Popkin, Barry M. (2005). Are Child Eating Patterns Being Transformed Globally?.

The article "Obes. Res., July 13: 1281-1299" was written by S. Bryn Austin, Steven J. Melly, Brisa N. Sanchez, Aarti Patel, Stephen Buka, and Steven L. Gortmaker.

(2005). The study titled "Clustering of Fast-Food Restaurants Around Schools: A Novel Application of Spatial Statistics to the Study of Food Environments" was published in the American Journal of Public Health in September. Additionally, Berta's article from 2007, titled "New treats keep snack pack leaders out in front of growing threat from quick-service competitors," was retrieved from http://findarticles.com/p/articles/mi_m3190/is_26_41/ai_n19520537 on October 22, 2007. Lastly, a 2005 publication highlights how franchisors are aiding operators in meeting the demands of today's discerning consumers with an emphasis on quality food and excellent service.

The Nation's Restaurant News article from November 21, available at http://findarticles.com/p/articles/mi_m3190/is_47_39/ai_n15927977, and the IBISWorld Industry Report titled "Limited-Service Eating Places in the US: 72221" from 2007 by IBISWorld Inc.

Irvine, A. Blair, Ary, Dennis V., Grove, Dean A., and Gilfillan-Morton, Lynn (2004) conducted a study to evaluate the impact of an interactive multimedia program on eating habits in Health Education.

On June 19, Res. published an article titled "Organic hip: popular picks at health food stores - Organics: all things purely organic - organic food consumption on the rise" by Heather McIver in Better Nutrition magazine's February issue. The article can be accessed via http://findarticles.com on October 22, 2007.

Neumark-Sztainer, Dianne, Story, Mary, Hannan, Peter J. and Croll, Jillian (2002) conducted a study on the eating patterns of overweight adolescents. The study

aimed to compare their habits with the Healthy People 2010 Objectives. Their findings were published in the American Journal of Public Health, May 92, 844-851.

The BMJ article "Eating disorders and weight problems" by Nicholls, Dasha, and Viner from 2005 and Tony Royle's study on labor relations in the fast-food industry are both cited in the following passage enclosed within a

tag.

London's Westview Press published Jennifer Parker Talwar's book "Fast Food, Fast Track: Immigrants, Big Business, And The American Dream" in 2004, which was printed by Taylor ; Francis and Routledge.