PESTLE Analysis of Fast Food Industry. The fast food industry outlines the mass production of food for commercial sale purposes with an emphasis on speed of service. The fast food industry follows the commercial strategy of serving mass people comprising wage workers, travelers, and busy commuters.
Some of the main products and services in the fast food industry are as follows;
- Fried chicken
- Hot dogs
- Pizza margarita
- French fries
- Frozen beef patties
- Bagged buns and condiments
Key statistical facts and figures about the fast food industry are as follows;
- The worth of the global fast food industry in 2023 was 907 billion US dollars
- Market size of the US fast food industry in 2022 was 331.41 billion US dollars
- Approximately 201,865 fast food restaurants are in the US by 2023
- Roundabout 50 million US citizens eat fast food on a daily basis
Some of the top brands in the fast food industry are as follows;
- Dairy Queen
- Pizza Hut
- Burger King
- Taco Bell
- Dunkin’ Donuts
Some of the health risk factors associated with the fast food industry are as follows;
- Insulin resistant condition
- High cholesterol
- Colorectal cancer
- Cardiovascular disease
Today, we’ll discuss the PESTLE analysis of fast food industry. It is going to focus on the macro factors like political, economic, social, technological, legal, and environmental factors impacting the fast food market. Here’s the Fast Food Industry PESTLE analysis as follows;
Political Factors Impacting Fast Food Industry
Some of the main political factors in the PESTLE analysis of Fast Food Industry are as follows;
Various fast food brands are operating their chain network business in various countries across the world. Political conflicts and international issues make it difficult for fast food companies to operate their business in a certain region. However, it is because of the government and political restrictions on the company due to their origin country’s political conflict.
Fast Food companies have to comply with various political regulations like wages, food quality, and hygiene. In case of non-compliance with any of the regulations intentionally or unintentionally, then it costs the company heavy fines and duties.
If any political government comes into power which has a main objective of strict healthy diet regulations; then it would introduce new regulations for the Fast Food industry. As a result, it would become highly difficult for fast-food businesses to operate under a strict regulatory environment.
Economical Factors Affecting Fast Food Industry
Some of the main economic factors in the PESTLE analysis of Fast Food Industry are as follows;
If the economy of the country is going through the recession phase like high inflation, unemployment, and low purchasing power of people. It becomes highly difficult for Fast Food companies to maintain their profitability in such an environment; because people would decrease their spending to the basic necessities and focus on the cheaper alternative.
The Fast Food industry has become highly competitive in recent years with a lot of chain brands with their well-diversified menu. It has become difficult for them to maintain their profitability when price-conscious customers are looking for a cost-effective alternative.
Social Factors Impacting Fast Food Industry
Some of the main social factors in the Fast Food Industry PESTLE analysis are as follows;
Healthy Diet Trends
The consumer market has become highly cautious about healthy food and what they are putting into the body because it would ultimately impact them. That’s why they have decreased their spending on fast food and junk food, and it is not good for the business of Fast Food companies.
Behavior & Interest
Social media plays a significant role in impacting lifestyle choices, interests, and behavior of the mass consumer market. It promotes the significance of organic food and healthy diet trends, and it is making people “say no” to junk food. However, some of the Fast Food brands have updated their food menu and included organic meals and food items for the diet conscious customers.
Technological Factors Affecting Fast Food Industry
Some of the main technological factors in the Fast Food Industry PESTLE analysis are as follows;
Online Food Ordering
Technology has revolutionized the Fast Food industry just like any other area of life. Online shopping trends have made people order their favorite food online, and the food would come to their doorstep via any food delivery service provider. Nowadays, many Fast Food companies have established their online store and partnered up with 3rd party delivery service providers in order to keep up with the latest trends.
Social Media Influence
Along with serving customers with tasty food and delivery service, Fast Food companies have established their professional social media pages to connect with their target customers. They share their daily menu and allow customers to share their reviews, and it helps them to gain a competitive edge over competitors.
Legal Factors Impacting Fast Food Industry
Some of the main legal factors in the Fast Food Industry PESTLE analysis are as follows;
Safety & Health Regulations
Fast Food industry is always on the verge of complying with the food safety, quality standards, and waste management regulations. The reason food companies have to be very careful about it is that everyone consumes food, and one stale ingredient would jeopardize the health of hundreds of people. That’s why they have to be very cautious about food safety regulations.
Different people are allergic to different food items, and that’s why Fast Food companies fully disclose the items involved in their menu. Manipulative sales and marketing approaches would impact the health and lives of customers, that’s why Fast Food companies follow the sales and marketing regulations.
Environmental Factors Affecting Fast Food Industry
Some of the main environmental factors in the Fast Food Industry PESTLE analysis are as follows;
Fast Food companies generate a lot of waste in the production and cooking process, and how they’re dealing with waste. It is because the consumer market has become highly cautious about the environment and how they’re managing waste. However, if a food company is generating waste and polluting the environment, then modern customers won’t buy from such companies.
Conclusion: Fast Food Industry PESTLE Analysis
After an in-depth study of the PESTLE analysis of Fast Food industry; we have realized that the Fast Food industry is the world’s top-growing business with a lot of growth potential. If you are learning about the business of the Fast Food industry, then you should keep in mind the abovementioned macro-environmental factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.