Fast food Industry

Submitted by:- Mohsana Iqbal 0911 156

eating out definitely is part of our fast paced lifestyle. your local shopping center. gas stations. malls. schools.Almost everywhere you look you’ll see a familiar sign symbolizing our fast food nation. More money is spent on French fries than on higher education. and even in hospitals. or new cars! Looking at how our society has become faster paced. airports. it is no wonder less time is spent. off the side of interstates. not just a special treat as it was in years past Fast food Industry . You find them on the corners of streets. Today. personal computers.

Fast food industry. which is the key to success in a monopolistic industry. SOME FAMOUS FAST FOOD RESTURANTS IN PAKISTAN . hence becoming a part of monopolistic competition. image. specifically talking about the growing trends in Pakistan we can observe the growth in number of fast food outlets. depending on the product. quality. or some other feature. Products can be differentiated based on price. with various promotional activities being carried out to differentiate products from one another. This perception of difference is the result of product differentiation.Is a form of Monopolistic Competition Monopolistic Competition Monopolistic competition exists when a large number of sellers produce a product or service that is perceived by consumers as being different from that of a competitor but is actually quite similar.

Q Tonight  Briyani Centre  Students Briyani  Lasania  Lal Qila  Salt n Pepper  Eat-on  Pizza Hut  Pizza Express  Indulge . KFC  Mc Donald’s  Subway  B.B.

Rawalpindi. With a strong belief in the Ray Krock phrase when you are green you are growing. Sukkur & Muree) with more than 45 outlets nationwide McDonald McDonald's Pakistan opened its doors in September 1998 at Lahore and presently operating in six major cities with a network of 20 restaurants. Islamabad. Gujranwala. . Sialkot. It then expanded to Karachi and Peshawar. McDonald's Pakistan has an aggressive plan to expand in all other cities of Pakistan and is rapidly growing with the focus to provide friendly and quick service restaurant experience to our customers. Peshawar. Hyderabad. Now it also has restaurants in Faisalabad. Rawalpindi. Faisalabad. Quetta.THREE MAJOR FAST FOOD CHAINS IN PAKISTAN KFC Presently KFC is branched out in nine major cities of Pakistan (Karachi. Islamabad. The maximum numbers of Pizza Hut outlets are in the thickly populated city Karachi. Sialkot and Multan. Hyderabad. Multan. Jhelum. Lahore. Pizza hut Pizza Hut first started operations in Pakistan by opening its first restaurant near Bank's Square on The Mall in Lahore.

The demand and supply curve for fast food industry has shifted outward The Major reasons for this change are the new taste.First a few names were known to be capturing the markets large chunks like KFC. Pizza Hut and etc. fashion trends and lifestyle. Not only have more producers entered along with increase in demand but the major market shareholders are facing tough competition and are facing shrinkage in their market share. but now almost every street you turn to you will find a new restaurant etc. . McDonalds.

• The increase in demand naturally attracted more suppliers.For example:• First people preferred treats and celebrations indoors which meant all the cooking and eating took place inside homes but now people prefer going out. . In fact now even for regular meal people place their orders and receive home delivery rather than cooking it for themselves. increasing competition and supply in the market • With the new lifestyle where people have less time it’s convenient to have readymade meals Etc. now people would go to any restaurant without having to celebrate a special event. • Previously going out for any meal was only at times of special occasions.

quality. availability etc. deals etc. Non-price strategies like creating a brand image. locality. tends to encourage long run sales (that is consumers coming again) . This is because firms are working extensively on creating an image of offering a differentiated item and also because of extreme price competition because of which we can all observe the discount offers. When consumers have so much variety (close substitutes available) then these non-price competition strategies and especially price fluctuations can influence potential consumer preferences.These firms are working under very a quite elastic condition as it’s usually the case with firms under monopolistic competition. being promoted by different fast food firms.

In short run firms operating in this industry might earn abnormal profits till the competitors enter the market. Because of extremely competitive market new competitors enter and prices are lowered down. so in the long run they earn Normal profit. .

Firms under monopolistic competitive markets have somewhat control on their pricing if they are able to establish a strong image and brand loyalty. . So it is possible that a firm in this industry might earn beyond normal profits in the long run as well. For example Pizza Hut is charging more than Pizza Express. but the customers whoare loyal customers of Pizza Hut would still go their but probably in the long run the high prices would force some customers to go for close substitutes (Pizza Express).

employment rate etc. it’s a developing country. . leads to change in life style which influences our consumption and in Pakistan this is very evident which is leading to willingness and ability to buy and supply in the market. global trading. Factors such as growth in population.Macroeconomic factors have also influenced this industry in evryway. more job opportunities etc. are some very important and have influenced this and all sorts of industries operating in different type of competition. the population is increasing. Pakistan’s majority is youth.

Sign up to vote on this title
UsefulNot useful