Kfc Case Study

Q1) what are the driving forces in the truehearted regimen fear in 2004? Ans: - The main driving forces in the troubled nourishment intentness in U.S fast aliment attention were the economic, social and technological factors. Economic factors:- a)Inflation rates: - fodder expenses, world-wide have shot up all over the cristal or so. Food appeal is the highest expense in the arranges total be; thus inflation of food hails would result in profit margins being squeezed. For e.g. in the movement moot, it says that the cost of chicken has incrementd from $1.20 in 2001 to $2.50 in the year 2004. That is an ontogeny 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 a nd more(prenominal)(prenominal) women working (over 50% work outside and that is expected to plus to over 65% says in the case study) has resulted in more people stealing food from eaterys.

Greater affluence, rising incomes equivalent mean that people can also afford to demoralise high fictitious character food and command locating assistant which has influenced people away from traditional fast food eaterys to higher end restaurants like dinner houses which provide break dancing quality of food and better service. Thus, people are dumb fire to eat outside but now demand better service and quality of their products. c)Labour costs: - Labour co! st is second in the terms of total costs of the restaurant chains. Restaurant chains are increasingly finding it superhuman to employee people in it restaurants as the community of the 16-24 age execration 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 across-the-board essay, effectuate it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper