Companies in the fast food industry provide quick and affordable alternatives to home-cooked meals for young adults, working professionals, and families.
The recent craze of consuming food products that are healthy hasn’t affected the sales of the fast food industry. On the contrary, the food sector has found a way to satiate the health and nutritional needs of consumers by offering healthy versions of their food products. The fast food industry has gained momentum owing to factors such as increased women’s participation in the workforce, long working hours, and lack of time for meal preparation among several others. Thus, with the increasing preference for convenience among consumers, the popularity of order takeaways or eat in quick-service restaurants has increased. The food manufacturers in the fast food industry provide quick and affordable alternatives to home-cooked meals for young adults, working professionals, and families. The growth in the food and beverage industry can be attributed to technological advancements, streamlined and controlled manufacturing processes, growth in population, and improved cold chain technology.
With consumer demands and preferences changing rapidly, it’s high time for fast food companies to take a look at their strategies to better connect with target consumers. Want to gather more insights into the trends and challenges? Our market intelligence experts can help. Request a FREE proposal today!
Companies in the fast food industry operate on relatively small margins and face flat sales – a result of the constant price wars among the restaurateurs in the highly competitive market. Several trends such as increasing demand for home delivery services, drive-thru options, increasing consumption of technology, and web-enabled applications among others are set to drive the growth in this industry, globally. Apart from such trends, the fast food industry faces challenges such as lack of fresh ingredients, increase in consumer demand for healthy food, rising competition, and quick food options such as ready-to-eat meals and products, which can wreak havoc and result in narrower margins for the restaurant owners.
Fast Food Industry Trends
Technology, Drive-Thru, and Demand for Home Delivery
The food industry is increasingly embracing technology, social media, and internet-based mobile applications to reach their potential customers and drive sales and create revenue opportunities. Technology in the food industry has transformed everything right from ordering food, pick-up, and meal delivery. Fast food restaurants are also adopting tech-driven and web-enabled mobile applications to entice customers with a wide range of payment options.
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Fast Food Industry Challenges
This industry will face a slew of challenges as consumers prefer to order and consume food within the comfort of their homes. Factors such as weather conditions, traffic problems, lack of time, and longer working hours will give momentum to alternative options such as meal delivery services, convenience foods like ready-to-eat meals, and ready-to-cook products. The foodservice industry also faces very low customer loyalty due to increasing competition and a lack of innovation in products and services. Today, consumers increasingly prefer food providers that follow a Fairtrade practice, offer environmentally sustainable and healthy options, and prefer naturally sourced food products. This makes it extremely difficult for companies to source these products at a relatively affordable price without logistical problems.
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