Fast Food Restaurants in Canada Business Plan

Document Type:Business Plan

Subject Area:Business

Document 1

Both company-owned stores and franchised stores all give revenue that add up to the gross revenue. These restaurants also offer facilities for drive-thru operations. The fast food restaurant industry in Canada that thrived even with the continuous challenges that arise in terms of competition and changing consumer tastes. Consumer interest in fast foods has continually been renewed with the consistent innovations by fast food restaurants and high spending by consumers since 2013. The fast food restaurant industry in Canada has had high profit margins since most of these restaurants cater for the market of people who are coffee, salads and even smoothies consumers. There is a rise in spending on fast food restaurants though the larger population still consume food at home.

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an estimation of 75% of Canadians eat three or less meals in a week most of which are not produced at home. A survey carried out in 2001 showed that households where people earned less than $20000 spent at eat 23% of their weekly food allowance on food restaurants and as the income increased si did the spending on fast food restaurants in Canada. A high spending rate was with single men and sing parent families. A change in consumption patterns may be as a result of number of influences among them being, adapting healthier lifestyles. Once the growth level of sales has become even, the average growth rate per year is expected to become 3. 9% per year with real sales growth being 1. 2% annually. Quebec has strong consumer demand for fast food services and with also the help of low unemployment rate will enable growth and stability of the industry.

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Atlantic Canada is promising in terms of sales due to the large aging population and an economic activity that may be characterised as slow. In order for most of these fast food restaurants to be able to deliver both quality services and food products, the cost of operations will have to increase which will directly reflect on the prices for food stuff. This will include hiring high qualified staff which increases the labour costs. In as much as fast food restaurants may want to provide quality food that meets customer satisfaction, all these restaurants are still in business and are in it to make a profit. However, there are a number of opportunities in the fast food restaurant industry for restaurants that are already operations or new entries into the market (Lamichhane et al, 2013).

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The food consumption revenue has steadily gone up and has aided in boosting the economy as well. Using the current market trends, what should be implemented? Strong sales growth is expected in 2018 as consumers seek convenience and value from fast food restaurants (Currie et al, 2010). For a long time, service quality has had a direct influence on customers and their satisfaction. For any industry, when the customers are satisfied, they always stay loyal to any organization or company. They also tell their friends, family and even colleagues which acts as a form of advertisement. Satisfied customers and quality services serve as a competitive advantage over a company’s competitors. Some customers tend to have a positive perception towards the value and may be more than willing to pay a high amount for the right kind of fast food product.

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However, for some, when the price is too low, they would not go for a particular fast food restaurant with a suspicion that the quality of food and service would not meet their standards. Some customers want nothing short of quality food products and service and are willing to even pay more so long as they are assured quality. Macroeconomic issues Technology has gone a long way in terms of enabling better communication channels for advertising fast food restaurants in Canada. Some of the efficient methods have included social media and a simpler and cost efficient way has been word of mouth. A number of opportunities that are available for the fast foods restaurants in Canada, are far greater that the challenges and threats.

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