Production and Cost Analysis in the Fast Food Industries - Free Paper Example

Published: 2024-01-25
Production and Cost Analysis in the Fast Food Industries - Free Paper Example
Type of paper:  Essay
Categories:  Business Analysis Fast food
Pages: 7
Wordcount: 1705 words
15 min read


Fast food is a type of service that involves preparing food prior, packing it, and keeping it safe to take away service. The services are carried on well-established supply channels. The business has adopted franchising as a marketing strategy to enhance its expansion. Most of the food served through the fast-food service is always prepared in advance and kept in bulk, already packed, and kept safe to take away services. This paper analyses the case study of fast food industries in the United States. It also analyses the effects of technology on the fast food industries.

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Understanding the nature of the fast-food business in the United States demands knowledge of United States market trends on fast food. It is vital to understand the fast-food industry's strategies in advancing its market catch and reliability. It is critical to establish why the fast-food business is a success in the United States. Again, it is essential to examine the customers' expectations of the fast-food industry. It is crucial to examine the customers' popular fast food products, the most preferred types, and why the customers like such products over others. It is also essential to acknowledge the contribution of the drive-through window facilitating services for fast food. The management of the fast-food industries is vital in determining their progress and profitability.


Business Achievement in the Fast Food Industry

Strategic locations have proved vital in attracting and informing customers to the business location. Several factors contribute to the success of the fast-food industry in the United States. Notably, customers and consumers prefer places that are easily accessed. The fast-food businesses are located in convenient places that easily allow the consumers to reach them. Locating businesses in suitable places has made them attract prospective customers and maintain regular ones. The fast-food premises' strategic location has resulted in the realization of growth in terms of increased sales. It has promoted the businesses by exposing the advert signboards, thereby enhancing the visibility of the premises.

Advertisements and Promotions are key in making prospective and regular customers aware of the services offered by the businesses. The advertisements are a form of promotion to the businesses. This marketing strategy aims at influencing prospective clients into buying and engaging with the business. The fast-food industries have adopted advertisements on several fronts and platforms to influence the client's attitudes towards the businesses. Most of the adverts are persuasive and influential. The fast-food businesses have adopted advertisements on several platforms intending to reach a larger audience. Some of their promotional activities include social media, local and mainstream Media, mobile advertisements, signboards, and broadcast advertisements.

Consistency is another strategy that has helped the fast-food industries to contain their regular customers. It involves practicing a high level of hospitality to the clients at all times. A laxity in customer treatment can demoralize customers who will switch to other alternative providers. The strategy has helped the fast-food industries to ensure that their customers are well served and are satisfied at all times. The quality of the food served should be uniform as expected and pleasing to the customers at all times. The consistency practiced by the business has helped in upholding its standards, values, and reputation amongst the clients.

Food value and innovation at the premises have created a sense of trust between the business and the clients. The quality of food served by the fast-food industries is vital in the clients' face. It instills a feeling of safety in the customers. The food’s safety and quality are easily determined by the restaurant environment, the health standards of the business employees, and the equipment used to serve the food. The excellent quality of the food served has helped the fast-food industries be more successful since they have maintained a good standard of quality and safety. Developing a new type of cooked food product with varying tastes has made the clients always want to keep close with the businesses. It allows them to have a taste of the range of food prepared in different methods and flavors.

Fast service and cost are enabled by the introduction of technology. Fast-food industries have adopted various measures to serve their clients. They have reduced the long queues at the serving points by the introduction of web-based order placement. The food can then be delivered to the customers' destination. Marketing trends primarily determine the cost of the food. The cost depends on the type of food served, the type of delivery involved, and the quantity of the food served.

Popular Fast Food Products

According to an article in the Business Insider written by Akcam, “Improving order processes with information technology,” it is easy to establish the most favorite fast food products among consumers (Akcam, 2020). The analysis and ranking are based on the sales and market trends for given products. However, the research is not disputing the individual judgment and taste of a given product. The graph below displays the most favorite stock of food on fast service deliveries.

Moreover, the trend depends on each community's cultural norms and perceptions towards a given food product. McDonald's French Fries are one of the leading favorite foods for customers. It is ranked at the top among the fast food served to customers internationally. McDonald's Big Mac is another food favored by consumers besides chicken nuggets, mashed potatoes, McDonald's Happy Meal, and fish.

Impacts of Production Technology on Cost and Profits

The use of drive-through windows by the fast-food industries has translated to more profits for the businesses. It has helped in the provision of multiple deliveries of services. The system is considered as safe as the clients and the service providers interact through the windows. However, technology is fast changing the trend. The automation of services is fast being adopted by the fast-food industries. It is considerably cheap and more profitable as it involves the engagement s of fewer laborers. The growing technology has seen a gradual rise in the profit made by the fast food industries in the United States. The engagement of families in places of work gives them little time to prepare food. Again most of the people who stay alone would prefer buying readily made food than cooking. Such has translated to an increased purchase of fast food thereby translating to high profit margins.

The latest technological inventions in the fast-food industry include e-commerce, a web-based platform for processing orders. The automation of services is another critical technological invention that is offering relief to businesses. The introduction of technology in the fast-food industry has led to positive and negative impacts. It is efficient for the business since it reduces human labor and makes the automated machines multi-task. As a result, it has reduced the wages given to the employees. Again, the machines' maintenance may take less money compared to the amount paid to the casuals performing the same tasks. Reduction of the number of laborers translates to increased profits for the fast-food industries.

Fast Food Market Trend

The growing health concerns on specific types of food have made consumers fear them. Some scientists hypothesize the link between diets to sicknesses like diabetes, cardiovascular diseases, pressure, and low sexual virilities. The fast-food industries have adopted producing food with different dietary content but maintaining the flavor. The use of fast food depends on the age, sex, and occupational commitments. The graph summarizes the analyzed use of fast food among children women and men in the United States.

Significantly, the new trend has attracted consumers who consume the foods based on their favorite flavors despite the dietary content difference. The fast-food business industries are adopting service automation instead of using human labor. The system is considered safer and healthier than that done by human laborers. Wendy's, KFC, and McDonald's are accredited with the useful application and use of roots in carrying out their services. The automation of services is faster and more secure than human service.

The food menus from the fast-food industries like Wendy's have alternative options for various preferences. Such has enabled potential customers to easily switch to favorites and have the room to select from various options.

General Challenges on Fast Food Industries

According to Thiemann in the article “Fast Food Sovereignty,” fast food industries are faced with several challenges that business environments and efficient operations. There are talks of unsafe menus at fast-food restaurants (Thiemann et al., 2020). The growing concern for healthy food in the United States is fast-growing, given the health implications of unhealthy food. As a remedy, the industries have adopted a policy of informing the customers on the content of every food they serve plus the health implications associated with them. There are reports of unfavorable working conditions in the fast-food industry. They are reportedly paying low wages. The employees are said to be having a hard time meeting their daily living standards and requirements due to the low wages from the businesses. Cultural norms are another factor that drags back the progress in the fast-food industry. Some specific food is specifically associated with some cultures while hated by other cultures. The cuisine is a favorite dish for the Mexicans but unpopular among the Americans. As a result, the fast-food industries have realized the need to do cultural research on every community to establish their favorites.


Technology is an exemplary aspect of carrying out businesses safely and effectively. It has reduced the production cost of processing and delivering fast food. However, the adoption of technological applications by the fast-food industries has helped realize an increased profit and build a good reputation. However, technology is threatening the human resources and personnel who largely depend on their livelihood industries. The use of technology should be practiced with caution. Its extensive use and adoption are threatening the employment and survivability of many people.


Akcam, B. K. (2020). Improving order processes with information technology: McDonald’s case. Journal of Information Technology Teaching Cases, 2043886919885938.

Thiemann, L., & Roman-Alcalá, A. (2019). Fast Food Sovereignty: Contradiction in Terms or Logical Next Step?. Journal of Agricultural and Environmental Ethics, 32(5-6), 813-834.

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