THOUGHTS

Current Trends and Challenges to Watch Out for in the Fast Food Industry

Jan 14, 2018

Looking back, there has been a drastic change in the food habits people have been following around the globe over the years. With the dawn of the fast food revolution, pizzas and burgers have been ruling the taste buds of people around the world. However, this trend took a ‘U-turn’ back to healthy eating habits because of the growing health concerns and increasing popularity of healthy food among consumers. But this drastic change has not taken a severe toll on the fast food industry yet. Globally, the fast food industry generates revenues of over a whopping $570 billion – which is higher than the economic value of most countries. According to Technavio’s report on the global quick-service restaurant market 2016-2020, the global quick-service restaurants market is expected to grow at a CAGR of almost 4 % during the period. Join us as we explore some of the latest trends and challenges in the fast food industry.

Thriving in a highly competitive industry like the fast-food sector requires businesses to keep track of trends and adopt new strategies to succeed in the long run.

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Fast Food Industry Challenges

Although the future of the fast food industry looks promising, the brands operating in this sector are not free from obstacles. It is vital for companies to be on their toes and identify these challenges before it becomes too late. Let us take a look at some of the critical challenges that the food industry players have to watch out for:

Cut-throat competition – Over the years, the lucrative prospects in the fast food sector have attracted a large number of companies in this industry. This has created massive competition in the market among brands to grab the more significant chunk of the market share. The increasing rate of competition among fast food joints is one of the major reasons why they should continually strive to differentiate themselves from the others.

Consumers’ shift to ‘healthy’ – The shift of consumers towards a healthy lifestyle is a major threat to the survival of the fast food industry. The popular belief that fast food has a lot of side effects is just adding fuel to the fire. Therefore, it is high time for companies in this sector to re-invent themselves and undertake measures to convince customers that they are all healthy.

The threat of being sued – Food intake habits have the potential to disrupt the entire well-being of a person. Therefore, laws have been formulated to make nutritional disclosure in food items mandatory and more stringent. There have been numerous instances in the recent past where consumers have sued fast food joints for causing obesity and cultivating unhealthy eating habits. This calls for the fast food giants to make alterations and healthier additions to their menus.

To know more about the opportunities, threats, and challenges in the fast food industry – Request more info.

 

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