External factors affecting the fast food industry Essay

There ar a subject of external factors that guard a deep impact on the sales and revenue internet of the fast provender chains. The changing demographics, shift in consumer insight and penchant, consume habits, increase in cost of supplies and labor, economic condition of the geographical subject in which the outlets are located all these are several(prenominal) of the factors that expunge the profitability of the business. Pricing strategy Families and individuals in the higher income group are most frequent visitors to the fast aliment eatery.The disposable income plays an important type in determining consumerism in this sector. The prices on the menu card is not so important when it comes to catering to high disposable income group. But that restricts the customer base and may not be an ideal situation for the company. like a shots lifestyle has incorporated the fast pabulum patience into its perfunctory schedule. The Wendys or the McDonalds have menu cards th at campaign the pocket of the low-income segment group too. Recently McDonalds had introduced the Dollar computer menu where all items cost $1 single.It was a runa charge hit with the teenagers and youngsters. The dissension in price has enabled McDonalds to attract customers from all segments. In rejoinder to this pricing strategy Wendys and Burger King in addition introduced low priced meals to match the pocket of all segments. bandaging Yard Burgers on the other bowl over have higher priced burgers at $3. 59. The premium priced menu card has not found acceptance with all consumer segments but the management does not urgency to compromise on the price of the products. It believes that in terms of quality of the viands items the prices are reasonable.Back Yard Burgers wanted to distinguish itself from the cutthroat challenger in the industry with premium quality products. The management strategy holds swell in terms of quality and military service but is it good tole rable for the survival of the company? A look at the sales figures for the by 3 years gives an indication of the sales and revenue trend. Consumer taste and preference The ever changing taste buds and change magnitude changes in lifestyle of the consumer has kept the fast food industry on their toes.Rising mobility, increasing number of women joining the workforce and hectic schedules leave very little cartridge clip for a home cooked meal. The need for faster options in food and service was felt that led to the tremendous growth in the fast food industry. Quick serve burgers, pizzas and sandwiches accompanied by French fries and light speed became the ideal meal for the average Americans. A diet rich in fat and sugar attracted the consumers in plenty. This resulted in obesity and a affection prone society. Diabetes, heart problems were some of the impacts that the cheesy diet had on the consumers.Lawsuits were filed against some major players in this field like McDonalds for the growing obesity among children and adolescents. This change the consumers of fast food and they realized the necessity for healthy alternatives. Health intended consumers are much alert of what they eat and how it can affect them. The industry witnessed a radical change in consumer taste and preference. This brought about a sharp decline in revenues for the fast food industry. The fast food chain operators brought about a change in their strategy by adding salads, fruits, and soups to the menu cards.Low calorie burgers and sandwiches are offered in addition to the standard menu items. This offers the customers with choice to healthier meal options. Back Yard Burgers has also adapted to the changing consumer preference by adding nutritious salads and milkshakes to their menu card. foot of grilled charbroiled burgers that claim lesser fat and lower calories have attracted the consumer fill and taste. Healthier and tastier alternatives in food items prepared with fresh ingre dients are the strategical point of Back Yard Burgers customer service.This has not only earned it a good reputation among the loyal consumers who return for more of the great quality food and taste but has also modify its market position. But the fast food industry cannot ensure consumer fealty since the interest of consumers is flickering. They always want to try something new and better form of options in food that they consume. To serve the changing tastes of the consumer and maintain their interest the restaurant needs to constantly make changes to its menu card by adapting to their taste buds. Back Yard Burgers should keep this mind while formulating their operating strategy.With more fast food companies offering a wide range of products and services, Back Yard Burgers should also draft changes to its existing operating structure. One way of achieving this objective would be to combine the essential features of both fast food and full service restaurants. A menu card that features in a regular full service restaurant integrated with fast food service will work wonders for the company boosting sales and revenue with an increasing consumer base. Event catering and home delivery service could also splay newer avenues for the company.