Page 30 - Cost_Competitiveness
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The Institute of Cost Accountants of India
Fast Food Industry with Profuse Outlook
Backdrop: restaurants now focus on fresh or organic
products. From franchises focused solely
There is a plethora of demand for a quick on salads or healthy wraps to the lower
bite at all times of the day in the modern calorie options .Fast food franchises are
era. Fast food franchising opportunities also focusing on expanding into new
subsist in the “traditional” spaces like product lines, such as the coffee initiative
burgers and pizza, but are also budding and alluring customers back into their
up in healthy and distinctive ways as stores, hoping they will purchase food
well. The fast food industry, also known as well. Many franchises have been
as Quick Service Restaurants (QSR), has exploring other meal times such as
been serving up delicious crumbs for as breakfast and the mid-afternoon snack
long as people have lived in cities. The for growth opportunities and to increase
modern system of fast food franchising is real estate utilization. The industry is most
believed to have started in the mid 1930. effectively battling saturation by creating
In the U.S. alone there are over 200,000 a much more diverse range of offerings.
restaurant locations.
Applicability:
Objectives:
As one would hope, challenge is being
► Fast food franchises focus on high answered with innovation, and fast food
volume, low cost and high speed prod- franchises are responding with new
uct offerings, pricing and strategies to lure
► Frequently food is preheated or consumers back in. The following cost-
precooked and served to-go, though effective techniques are applicable in
many locations to offer seating for on- this regard:
site consumption
► For stands, kiosks or sit-down loca- ► Lean Manufacturing and Re-
tions, food is intended to be standard- source Mapping for Inventory manage-
ized and shipped from central locations ment
► Consumer Satisfaction to increase ► Kaizen Costing and Total Quality
proftability. management for continuous improve-
ment in quality and customer service
Methodology: ► Material requirement Planning
to calculate the quantity of materials
Busy citizens still need quick meal options, needed for production and to deter-
and fast food restaurants are fghting mine when they should be ordered or
these challenges with gusto. Now offering made
healthy choices to battle the stigma ► Successful application of Value
of unhealthy food, some quick service Chain method to perk up marketability
www.icmai.
The Institute of Cost Accountants of India
Fast Food Industry with Profuse Outlook
Backdrop: restaurants now focus on fresh or organic
products. From franchises focused solely
There is a plethora of demand for a quick on salads or healthy wraps to the lower
bite at all times of the day in the modern calorie options .Fast food franchises are
era. Fast food franchising opportunities also focusing on expanding into new
subsist in the “traditional” spaces like product lines, such as the coffee initiative
burgers and pizza, but are also budding and alluring customers back into their
up in healthy and distinctive ways as stores, hoping they will purchase food
well. The fast food industry, also known as well. Many franchises have been
as Quick Service Restaurants (QSR), has exploring other meal times such as
been serving up delicious crumbs for as breakfast and the mid-afternoon snack
long as people have lived in cities. The for growth opportunities and to increase
modern system of fast food franchising is real estate utilization. The industry is most
believed to have started in the mid 1930. effectively battling saturation by creating
In the U.S. alone there are over 200,000 a much more diverse range of offerings.
restaurant locations.
Applicability:
Objectives:
As one would hope, challenge is being
► Fast food franchises focus on high answered with innovation, and fast food
volume, low cost and high speed prod- franchises are responding with new
uct offerings, pricing and strategies to lure
► Frequently food is preheated or consumers back in. The following cost-
precooked and served to-go, though effective techniques are applicable in
many locations to offer seating for on- this regard:
site consumption
► For stands, kiosks or sit-down loca- ► Lean Manufacturing and Re-
tions, food is intended to be standard- source Mapping for Inventory manage-
ized and shipped from central locations ment
► Consumer Satisfaction to increase ► Kaizen Costing and Total Quality
proftability. management for continuous improve-
ment in quality and customer service
Methodology: ► Material requirement Planning
to calculate the quantity of materials
Busy citizens still need quick meal options, needed for production and to deter-
and fast food restaurants are fghting mine when they should be ordered or
these challenges with gusto. Now offering made
healthy choices to battle the stigma ► Successful application of Value
of unhealthy food, some quick service Chain method to perk up marketability
www.icmai.
