Kfc Case Study

Q1) what are the driving forces in the truehearted regimen attention in 2004?

Ans: - The main driving forces in the fast food intentness in U.S fast food industry were the economic, social and technological factors.
Economic factors:-
a)Inflation rates: - fodder prices, worldwide have shot up over the cristal or so. Food appeal is the highest expense in the arranges total costs; thus inflation of food costs would result in profit margins being squeezed. For e.g. in the case study, it says that the cost of chicken has incrementd from $1.20 in 2001 to $2.50 in the year 2004. That is an increase of over 100% percent. Chicken divide of the fast food industry is particularly hurt by this sudden price rise ,as customers are not secure to pay to a greater extent for their meals. Thus , inflation is one of the study economic forces that is affected the fast food industry in 2004
b)Trends in the growth of income: - Higher divorce rates and more women working (over 50% work outside and that is expected to increase to over 65% says in the case study) has resulted in more people stealing food from eaterys.



Greater affluence, rising incomes alike mean that people can also afford to buy high fictitious character food and demand mend assistant which has influenced people away from traditional fast food restaurants to higher end restaurants like dinner houses which provide break-dance quality of food and better service. Thus, people are still fire to eat outside but now demand better service and quality of their products.
c)Labour costs: - Labour cost is second in the terms of total costs of the restaurant chains. Restaurant chains are increasingly finding it herculean to employee people in it restaurants as the community of the 16-24 age crime syndicate has reduced significantly over the years as the population in the U.S is ageing. To compound this problem, labour turn over in the fast food restaurants is very high at whack 96% in the U.S. Also, Restaurants are trying to provide better service to customers,...If you want to get a full essay, effectuate it on our website: Orderessay



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