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Business Ideas for the Fast Food Industry



When thinking of ways to improve a business, doing some market research can be very helpful. Understanding the current market trends can help to understand what a business needs to do to improve. Currently, according to ibis world, the takeaway and fast food restaurant market size is £18.9bn, and a study conducted by fast food price shows that the most popular fast food restaurants in the UK are (2019):


  1. McDonalds

  2. Dominos

  3. KFC

  4. Subway

  5. Burger King


Knowing this information can help us to understand what there businesses are doing to be so successful. For example, instantly we can see a correlation between all these restaurants are that they all do delivery (including via Uber eats) and are available for ordering online. If we compare these restaurants to those which have not made the list such as Leon, the main difference is that Leon doesn't have a mobile app where customers can place orders from.


With this research in mind, we can begin to think about ways to improve Pengs Chinese takeaways business. A small gap analysis can be conducted on the different options, where the benefits and key challenges are identified.


Option 1 - Join a 3rd party platform to approach to the new market online.


Benefits


In my opinion, the benefits of joining a 3rd party platform such as Just-Eat outweigh the challenges. Joining a third-party platform will give the shop access to all their customers, meaning the shop will be more visible and have more orders. Also, as these platforms show restaurants according to postcodes, local customers can find the shop and then potentially become regular customers.


Challenges


The only main challenge with this option is that the third-party platform will take a cut from every order. For example, Just-Eat takes 10% commission from every order. So, the shop will either have to increase their third-party platform menu prices or suffer a loss of profit. Also, many restaurants are on these platforms so there will be more competition.



Option 2 - Build up digital presence to take orders and promote the shop to the new market.


Benefits


This expands the customers options for making an order and makes the process easier where they can do it with a few clicks on their device. A digital presence allows for users to view and track certain trends and analytics which can help in understanding customer needs.


Challenges


It can be quite time consuming for the shop to get this set up and be maintaining it. Also it can be expensive, creating the software and running it for every shop to use.


Option 3 - Implement 'Virtual Counter' system to reduce human resources required in each shop


Benefits


Having a virtual counter system could potentially make the ordering process quicker, and cheaper. Customers won’t have to wait in a long queue to speak to the till member to place their order. Also, the shop can save money by not having to hire staff members to be on the tills at all time.


Challenges


This new approach may be difficult for some people to get the hang of. For example, elderly customers may want to place an order the traditional way by speaking directly to a member of staff.


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