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Analysis of the Expansion of the Convenience Food Industry

  • Category: Food
  • Topic: Fast Food
  • Pages: 1
  • Words: 616
  • Published: 26 April 2019
  • Downloads: 23
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The trend of the fast food industry in the country is the most outstanding determinant of the foreign market analysis since it enables one to gain a deeper understanding of the primary tendencies. In the year 2014, the fast food industry recorded some tremendous growth, more so in the number of sales and transactions.

Chicken fast food is one of the subsections in the industry that recorded tremendous growth, attributed to the good performance by the leading industry players like KFC that opened more branches across the country in response to demand. The increase in demand inspired the prediction by Euro-monitor that the industry could potentially grow by 10.9 percent in the next four years. Despite this, the burger restaurants remain the most popular in the country, more so because there are growing the number of their customers through massive campaigns.

There is also the development of a trend where people are increasingly having breakfast out, with restaurants adopting the trend of offering all the three meals. One of the companies that have adapted to this is McDonalds, which has consequently grown to be the most popular regarding consumption. Snack bars are the second most popular food outlets in the country, with Fries, Crockets and Fricandels being their main products. However, this kind of fast food is facing a decline since many people view them as unhealthy.

In the year 2014, fast foods were very influential in the stock markets, accounting for at least 52 percent of shares traded. Chains restaurants were more popular than independent brands, more so because the younger generation of investors has grown to see major food chains like KFC and McDonalds grow and develop.

In the Netherlands, eating out, takeaways as well as drive through are the most common modes, although the latter is yet to be taken up by many suppliers. Only three companies have adopted the drive through, which are KFC, McDonalds and Burger King. Home delivery is also gaining more popularity, with Thuisbezorgd being the most popular delivery company linking suppliers and customers.

Competitive Landscape

The major competitors in the fast food industry in the Netherlands are McDonalds, KFC, and Burger King, who have taken up at least 50 percent of the market share. After inaugurating five new outlets in the Netherlands to increase their number to 241, McDonalds maintained their lead on the summit, regarding outlets. The company also saw its sales and income grow in the same year, although this was an industry trend that could be attributed to increased interest to get value for their money among the customers. Subway was one of the companies that recorded a high growth in the year 2014, opening 11 outlets to become one of the market leaders, albeit being in existence for only 14 years.

Franchising has also gained much recognition in the country, with many international brands using this to enter the market. The fast food industry has increasingly taken up this trend, considering that it would be very expensive for the company-owned outlets to record a big growth as realized by the industry players.

Advertising was also heightened in the year 2014, with the launch of an advertising campaign by McDonalds to gather support for their innovative concept where they were offering various menus each day of the week at 4.95 Euros. One of the commercials used was one of a popular Dutch artist who missed a concert to take up the new concept. Innovation was further showed by Subway, who opened branches in non-conventional locations like university buildings and the adoption of shop-in-shop concept, in collaboration with Dutch DIY Gamma.

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